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Lone Ranger

06/04/06 10:24 PM

#79709 RE: jdaasoc #79705

jd,

a good question is are inflation "expectations" beginning? I don't think so. How could it be with a monthly payroll jobs gain of only 75,000 and the futures expectations of a lessening chance of a rate hike next Fed meeting. Unless you believe in fed conspiracies to cause inflation buy stopping to hike early.<g> There's a lag time to hikes and expectations. Housing has inflated and associated costs with building them, as demonstrated by the generals on this board, but people usually buy a house once in their life, or one at a time, and once again I don't see a general run up in prices for the things I buy, and i think a large part of housing inflation was caused by tax policy change which now allows you to not pay capital gains on profits up to $500,000 for a couple if you've lived in the house for 2 out of the 5 previous years.

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ajtj99

06/05/06 12:10 AM

#79717 RE: jdaasoc #79705

The figures from the LME showing inventories of copper and zinc show a complete disconnect between supply, demand, and price.

Supply increased over the past 12-months, but price still increased about 150%. That's whacked, and it will correct with or without demand changes.