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Minyan Mailbag

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Nothing wrong with tossing your four cents in there!

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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.

Toddo,

It's awfully hard to get at what constitutes inflation. Obviously, the spending needs for a 25 year-old (apartment, food, entertainment) differ from that of a 45 year-old (housing, tuitions, insurance, healthcare, food) and 65 year-olds (housing, healthcare, food). However, the government statistics are clearly linked to the desire to 'limit' perceived inflation.

Examples. Last night I looked at tuition increases at some major private and public universities in the US. A quick survey of about ten, shows an average of 7 percent. Concerning energy, gasoline prices in the Northeast have risen 46 cents over the past 52 weeks. Two pounds of potato salad in my refrigerator have a price tag of $7.99. Malpractice insurance in the Commonwealth of Massachusetts has increased double digits during each of the past four years.

Inflation is not an abstract concept. Neither is it the Word of financial gods, Alan in Wonderland and his merry band of Central Bankers.

Someone is capable of producing reliable data concerning sector inflation: housing, healthcare, energy, insurance, consumer non-durables, education, entertainment. We can argue about how those sectors contribute to our individual inflation. Until someone does that, we are at the mercy of disingenuous 'forces' for which we pay taxes. Empty suits saying there is no inflation is a cruel joke or the big lie, no matter how they slice it.

Minyan Ron Sen, MD
Melrose, MA


Dr. Minyan,

I concur.

Toddo

R.P.

No positions in stocks mentioned.

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 todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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