No Inflation II
I just bought a chicken to roast for dinner and paid $1.49 / lb. for a whole broiler chicken. That compares to the $1.99 / lb. that I paid last week for an organic, all-natural chicken, which were not available today at the butcher shop near my bunker. So my point on the lack of all-encompassing "inflation" is more supported than ever with this data. The BLS data is correct and yesterday's fall in the year-over-year core inflation is very bullish IF reality ruled perception ... or WHEN it does.
Beefers = Big, Evil Funds.
I realize I haven't defined this term lately, so for new readers, see my first blog post of January 14, 2007 for a more complete description and some humorous metaphors for their behavior.
Bear Stearns
No matter what one thinks about the markets and economy, the problems at Bear Stearns are quite sad. Lots of fine people working hard are at risk of their jobs and might be hurt badly. I have friends working there, some very old friends from years past. So I certainly hope a favorable acquiror can be found to maintain the firm's current level of operations.
Is this an example of the Street tossing a virgin into the volcano to appease the gods ? Aka a "fall guy" ?
No, not in my opinion. The better metaphor is Don Juan going to hell after seducing and destroying the lives of large numbers of women - see the fine 17th century play by Moliere.
This is another example of how ruthless, greedy and/or dishonest people can rise high and ruin a firm. That firm's actions over the past 20 years or more created animosity and a cult of greed and cutthroat behavior, earning no friends or support when they needed it. The behavior of the former CEO, Jimmy Cayne, during the LTCM collpase is one example. Another is their destruction of some mortgage REITs and hedge funds in those turbulent markets of 1998 with unfair margin calls - much later they lost court cases and had to pay damages. The collapse of their leveraged hedge funds in early 2007 started this mess. And who knows what they were doing in this crisis ? I also have personal knowledge of despicable behavior by some senior persons (no longer there) from past experience many years ago. But the culture never changed in my opinion, so the amount of toxicity built up by that crowd eventually killed the firm.
Bear Stearns is no virgin being sacrificed ... it's Don Juan going to hell for past evils.
The sad part is the harm that might occur for so many honest, fair men and women.
Actions
This morning I scraped every last bit of money market, marketable bond fund and TIPs in my Krypto Fund and moved it into US stocks for close of trading Monday. I can't exchange the 10% chunk that is in nonliquid, retirement long term fixed income, such as Mrs. B's TIAA, to stocks. My asset allocation program also directed me to shift some money from the real estate class [Vanguard REIT index fund] to US stocks, too, and I obeyed.
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9 comments:
there is no inflation
huh??????????????
groceries and gas are goin thru the roof
i guess the Bman lives in a bubble
PS....1.49 lb chicken?..........that must taste like cardboard
i don't understand the Bman...............he's been rantin and ravin and rootin for beefers to go under
now that what the Bman predicted ( and wanted) is happenin....he is 'quite sad'
even if i agree with him that beefers are run by 'evil rich guys'....majority of the employees are just doin their jobs in operations .......and they are gettin laid off with no multi milion dollar parachutes........quite sad indeed
here's the bottom line.....billions and billions of dollars are leavin the market every week.....and they are not comin back .....to steal a line from joe kernen
"they are goin to money heaven"
it's very naive and simplistic to blame our current problems on senior wall street executives
lots of blame to go around.....wall street lenders, mr G, main street borrowers....etc.... ( greed doesn't discriminate )
business media didn't do a good job when these liar loans were bein givin out
but that's the past........the bubble has burst.......if laws were broken.....law enforcemant will take care of the criminals
but only writeoffs and time will take care of stock prices
actually that chicken was quite tasty, properly roasted.
The "sad" part was the pain to the ordinary employees.
BSC is done. im out. u will see the pr in the am.
friday cpi report was proof positive the bls is just making stuff up.
i just read an article that said across the country the avg price of gas was up 20 cents in feb. that was not reflected in the CPI report. i saw the prices go up in PA and FL, so unless it was just those 2 states and this reporter, the BLS is lying.
all i wanted was a decent paying stable job. y is that so much to ask for? i cud have been a crook and be retired by now.
karma can kiss my ass.
thieves win. honest people take in the ass
GS taking a 3 billion dollar write down according to bloomberg.
analysts saying this depression is the worst one since the great depression.
i guess these harvard and yale cats r not buying the bls's tripe, either.
i still think this is stagflation but that can quickly morphe into deflation if everyone stops taking risk.
looks like JPM will offer between 15 and 20 for BSC, or nothing and it will die.
maybe i shud just deal drugs. i understand the business model. im liquid. and if i get busted, i get a free place to live and free meals. although tossing salads doesnt sound appealing.
this sux!
watched SNL on the dvr while i ran today.
finally they crushed suze orman. krsiten wiig is funny. she suggested orman spends 85% of her disposable income on jackets.
the rest of the show was weak.
except mariah carey. i dont usually watch the music, but she is just so damn hot. and both songs were simply about sex. i think her boobs r real and they r spectacular!
i bet she gets down like a farm animal.
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$2 dollars a share? is that serious?
I'd guess the BSC shareholders will get some warrants, too.
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