Oh, THAT Inflation!

If you want to understand why I diss Wall Street Economists so much, have a look at this chart:
click for larger chart

Crb_5_year_chart_1

 

I am shocked – Shocked! to discover inflation in these premises!

What's been said:

Discussions found on the web:
  1. Jzeide commented on Oct 6

    Barry…I disagree w them too…could you explain this chart a little as I am not too ta savvy… Also, whats up w Fed fisher??? He seems to be the messenger… any thoughts on Mar Dia puts?

  2. Tim commented on Oct 6

    You know they re-jiggered the CRB just a couple months ago. Not sure if the intentions were sinister or not.

  3. Jzeide commented on Oct 6

    Thanks tim, thats helps me in some respect too.

  4. scorpio commented on Oct 6

    hey, Barry: i know you were looking for bull to continue until sometime ’06 (BR: November/ December), but question, is this it? stocks falling even tho energy falling? inverse relationship starting to break down? is this the signal that affordability crisis has spread from homes to stocks? eventually to bonds? Wall St economists may have just discovered inflation but i think the Fed-heads have known for a while it was out of control, just didnt want the little people to catch on and freak. believe the freaking may be upon us

    BLR: I don’t think so — this is not typically how markets roll over — We may sell down, and then rally up — But I would be surprised if this were it . . .

  5. Rich Berger commented on Oct 6

    Barry-

    If I read the CRB website correctly, it appears that the CRB index is far more volatile than CPI and may therefore not be very useful for translation into an inflation measure.

  6. Barry Ritholtz commented on Oct 6

    Scorpio:

    I don’t think so — this is not typically how markets roll over — We may sell down, and then rally up — But I would be surprised if this were it . . .

  7. scorpio commented on Oct 6

    well, u got that right: somebody stopped the drop, dont know if it was real buyers or my bete noir — the Plunge Protection Team — but what looked like beginnings of Oct crash definitely on hold for now

  8. sd commented on Oct 7

    Rich–

    Ignore this “volatility” stupidity keep talking about–it’s an excuse used by the Fed and its sycophants to exclude anything that’s going up in price.

    If volatility truly worries you, just use a moving average to smooth it out. You’ll still see a HUGE uptrend in inflation.

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