Screwflation: Part Two

The CRB index of commodities is actually up on the week despite the terrible economic data. One week doesn't make a trend but this bears monitoring. A weaker economy and higher commodities could put the Fed between a rock and a hard place.

4 comments:

Anonymous said...

Need QE3 fast to trigger housing inflation. Commodities inflation is not inflation, irrelevant in the US. We can take it. Other hand commodities where the money is.( check out byron wien....
market will rise    kass has a poor track record he is fighting the fed like many others)
S&P yields are there and will be there

Anonymous said...

Watching the euro and crude. Falling dollar will demand higher equity prices also

Tsachy Mishal said...

I think the Fed might be better off saying no QE III in order to get commodity prices down. The negative effect of inflation is greater than the positive effect of the wealth effect IMO.

Anonymous said...

We got the deepest depression in the 30s bc the FED stopped spending.Commodity prices are rising bc they are being bought in expectation of inflation and falling dollar not bc there is...The dollar is in a range  IMO it is strong but must be kept down otherwise will kill the mkt and there will be no asset class to invest in...And once the mkt falls  401 ks
retirement account will suffer  etc... My problem with QEs are they are not spent where really needed...