Point of Recognition

A hot CPI tomorrow after a hot PPI today might give the win/win crowd something to ponder. QEII is likely to result in higher inflation with little added jobs. The question is when will be the point of recognition?


Onlooker said...

Yeah, this would be the perfect excuse for the oversold dollar to rally a bit here, as it's due for. We can all get a bit worried for a few days that the Fed won't follow through with the full QE2, or some such narrative.

Then we can get back to having the dollar continue to fall into Dec/Jan when the yearly cycle low is due, and the stock market can challenge/exceed the Apr highs. And of course gold/silver can continue their relentless march upwards in their secular bull.

Applesaucer said...

I suspect we'll see price controls and speculative position limits (which Wall St. will find ways to evade) before we see the Fed cut off its banking friends.

Just my humble opinion.