THE ECONTRARIAN

A tad askew from the traditional view

Wednesday, January 18, 2006

TODAY'S NEWS

....CPI was negative for second month in a row and the core rate was at 2%, exactly where it's been for the last two years....This strongly suggests that inflationary pressures are not building....Interestingly, every stock market in the world has been off from 1% to 6% over the past five days....Energy costs are down today....Precious metals are down....Commodoties are down....The only recipient of some money appears to be the bond market...There may be some nervousness world wide as possibly evidenced by the small panic in the Japanese market yesterday which caused it to close down early...........The Iran situation is also interesting due to the leverage the country has....It is estimated that if Iran stops selling oil, the price of crude could rise to the $80 level....The Iraq problem is not going away...There's not much to get excited about, except that the news seems to be describing conditions that may favor the real estate market, or at least delay the onset of an eventual real estate collapse....Bush says he will do everything to gain the release of the American woman journalist who is a hostage in Iraq....I'm sure he'll ignore and hopefully fire any advisors who tell him that his stock may go up if she is killed....a horrible thought, but there is no doubt that we have entered an era of unspeakable acts....

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home