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Daal
Registered: Oct 2002
Posts: 8997 |
03-03-11 10:40 PM
Quote from Martinghoul:
Tightened today...
Sorry, was too busy getting raped by Tricky and his bunch of merry Central Bankers. It's all gonna end in tears.
It's amazing that he would say that, he even mentioned that money and loan growth remain weak plus iexpectations are anchored plus everyone and their mothers are running austerity packages, core inflation is still low, he wants to grow food and gush oil with rate hikes
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Martinghoul
Registered: Jan 2009
Posts: 5641 |
03-03-11 10:56 PM
Quote from Daal:
It's amazing that he would say that, he even mentioned that money and loan growth remain weak plus iexpectations are anchored plus everyone and their mothers are running austerity packages, core inflation is still low, he wants to grow food and gush oil with rate hikes
I wouldn't have a problem with it, if there was an agency in the Eurozone that can deal with the intra-European imbalances. However, everyone has now basically said that it's the other guy's problem. Makes me extremely bearish about the EMU's prospects.
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Daal
Registered: Oct 2002
Posts: 8997 |
03-03-11 11:03 PM
Quote from Martinghoul:
I wouldn't have a problem with it, if there was an agency in the Eurozone that can deal with the intra-European imbalances. However, everyone has now basically said that it's the other guy's problem. Makes me extremely bearish about the EMU's prospects.
Did you have problems with BOJs early hikes over the lost decades?Because to me this is like those, maybe even worse because Japan was running loose fiscal policy. I dont really know where the inflation is going to come from in the EU that Trichet is so worried about
Maybe this is a bluff to anchor iexpectations because its pretty much the only thing that could lead to inflation
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ralph00
Registered: May 2004
Posts: 2275 |
03-03-11 11:18 PM
CPI is a horribly flawed measure and pretty close to meaningless. Core CPI is even worse. It's one thing for bureaucrats to spend their days talking about it, totally different for private individuals to keep referring to it like some sort of beacon.
Don't know about Europe, but core (ha) CPI in the states is basically OER, which is housing. It's a politically designed gauge whose purpose is to assure that central bankers and politicians can always say it's contained.
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Daal
Registered: Oct 2002
Posts: 8997 |
03-04-11 10:59 AM
Quote of the day
"This is a shock," said Silvio Peruzzo from RBS. "This raises risks for the eurozone periphery through all kinds of channels. Most mortgages in Spain are on floating rates."
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ralph00
Registered: May 2004
Posts: 2275 |
03-04-11 12:53 PM
Why is that the QOTD? That's the whole point in raising rates. Spanish re needs to be taken out behind the barn and shot. Hopefully this is the first step in central banks not propping up asset prices. Higher rates will allow them to fall to their true economic value and then we can start building a real recovery from there. Congrats again to the ECB.
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