You always wanna see both sides of the coin before you flip.
Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next discussion with that very intent.
My husband just had minor knee surgery exactly like the kind I had 2 years ago (we both ski too much). Same insurance, same doctor, same out patient surgical facility, same procedure. My first surgery 2.5 years ago had no co-pay, the second 6 months later had a $75 co-pay, and his just last week had a $350 co-pay. But there is no inflation?
Minyan Kitty Cohan
In the same vein....
I know it's been beaten to death at Minyanville, but let me offer just a little more anecdotal evidence of the out of control inflation we deal with in reality. This morning my when I went to get my 24 oz coffee I found out that they increased the price by 15%. I was also picking up 1/2 gallon of milk for my wife's cereal and that too was about $.30 - .40 more expensive. The cost of super grade gas near my house was $1.93 (1.61 two months ago) and I'm in New Jersey where the cost of gas is the only thing we have in our favor! Finally I just opened my mail and see that my auto insurance was raised 12 pct and that's with no tickets or accidents. Do you think we can get some 7% bond yields so I can at least not 'lose money on my money'.
I can't tell you how many emails I get that are along the same lines as yours. Yet, the Bureau of Labor Statistics and the Federal Reserve Governors continue to assure the public and assuage fears that prices are tame. One of two things is gonna happen. Either the Fed will acquiesce and fess up that inflation is a reality (they are barely admitting that it's a threat) or there will be a growing discord in the American psyche that leads to a crisis in confidence (that will finally pop the psychology bubble).
That, of course, doesn't mean that financial asset classes will immediately melt. Anyone who doubted the resolve of a coordinated agenda was administered an equity enema last year by the powers that be. And I have no idea how much ammo they've got in the gun but if my view is correct--and there is no guarantee that it is--the last bullet in the simulative gun will be pointed inward. Cheery? Nope...but you'll rarely get this take in the mainstream media and you should be aware that it exists regardless if you believe it to be.
All the very best and, as always, thanks kindly for the Minyanship.
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at firstname.lastname@example.org.
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