Bureau of Weights and Measures

Wizardofid2007112223228

See today’s CPI data here

Print Friendly, PDF & Email

What's been said:

Discussions found on the web:
  1. Ross commented on Jan 16

    I’m glad you saved this for inflation-ex inflation day!
    Congrats……..A picture is worth a thousand blogs!

  2. scorpio commented on Jan 16

    now Volcker AND Mimi Schwartz of Friedman-Schwartz fame coming out against Bernanke handling of stagflation. that’s some serious tag-team action

  3. Michael Donnelly commented on Jan 16

    And CPI was 5.6% in the fourth quarter, that means retail sales was about -0.2% in the fourth quarter

  4. hal commented on Jan 16

    united we stand divided we fall

    I like the cartoon–when I was working my way thru school, I worked in a Deli and can remember the bureau of weights and measures coming in.

  5. Neal commented on Jan 16

    Faith-based accounting, again.

    Belief in something is sufficient to achieve the desired outcome.

    Debate is traitorous and defeatist.

  6. Eddy commented on Jan 16

    Sorry for the off topic but….

    Could you or any knowledgable readers please explain the implications of foreign sovereign ownership of U.S. Banks? Do foreign governments already influence U.S. banking policy to such an extent that these changes in ownership are not meaningful?

    And again, sorry for the off topic.

    Thank you.

  7. cinefoz commented on Jan 16

    Eddy Asked:

    Could you or any knowledgable readers please explain the implications of foreign sovereign ownership of U.S. Banks?

    reply: There are few, if any implications. If anything, the repatriation of US dollars from foreign sources will improve the balance of payments and strengthen the dollar. Think of it as ‘second chance’ money … a windfall of sorts that dumbass bank managers can be thankful for.

    BTW, remember … for every loser there is a winner. The cash they lost didn’t evaporate. That Paulson character got a lot of it. The rest went somewhere else, yet to be explained. Big events like this are a zero sum game. The news media just emphasizes the losers. Thankfully, this creates investment opportunities for those who have available cash.

  8. michael schumacher commented on Jan 16

    OT:

    Anyone else notice that the QID is trading down with the NASDOG down almost 18 points???

    Something very fishy with that….

    Ciao
    MS

  9. michael schumacher commented on Jan 16

    and it takes a 20 point loss in the NASDAQ to get that to trade up……….by a penny.

    Double short my ass….

    Crap, crap and more crap….

    So which Hedge fund is going to implode afterhours????

  10. Estragon commented on Jan 16

    Cinefoz – “If anything, the repatriation of US dollars from foreign sources will improve the balance of payments…”

    My understanding is that the foreign investment would be accounted for as a capital account inflow. The “excess foreign savings” view of the current account deficit (put forth by Ben Bernanke, among others) asserts that by providing capital account inflows at low prices, these flows encourage and enable the matching current account outflows (deficit). Also, if and when the investments generate income and this income is paid out to the foreign shareholders, a negative current account flow will happen.

    Returning to the original question, a big potential upside to these investments is that it may help smooth the way for the introduction of more sophisticated US banking methods to the investor home markets.

  11. Eric Davis commented on Jan 16

    Michael, the qid pays a dividend watch out for that it could be Ex-dividend date

  12. Estragon commented on Jan 16

    MS,

    Does the apparent discrepency have anything to do with different times for fixing yesterday’s close? There was mucho fluctuating with the Intel news after the 4:00 close.

    The close on QID (46.50) appears to be post-Intel. My screen shows the 4:00pm price as 45.53.

    Just a thought.

  13. Eric Davis commented on Jan 16

    Damn….Everyone hear that? Stagflation debate/discussion in the legislative branch…… AWESOME!!!!

  14. Estragon commented on Jan 16

    Eric Davis,

    I wondered that too, but QID was x-div on Dec 20th (per Reuters).

  15. Costa commented on Jan 16

    MS,
    I was thinking the samething, its not ex-date that pays quarterly. Something is fishy.

  16. Estragon commented on Jan 16

    MS & Costa,

    Yup, it’s a timing issue on yesterday’s close. FYI – here’s the Proshare explanation.

  17. michael schumacher commented on Jan 16

    I read it earlier and still am asking why that is happening.

    There is some imbalance in it that’s for sure..
    What it is …..is anyone’s guess.

    Ciao
    MS

  18. Costa commented on Jan 16

    darn i was hoping it was an unexpected dividend add to that nice return. QLD was also different at the close yesterday too

  19. michael schumacher commented on Jan 16

    the closing price should have worked out the disconnect fairly early in the session. It should not take a 20 point loss to get a positive trade out of a double short……

    Currently QID is -.11
    Nasdaq is -17.99

    No sense whatsoever.

    Ciao
    MS

  20. cinefoz commented on Jan 16

    Estragon,

    Capital can be returned to the US by exports from the US, sales of US debt to foreigners, and foreign investment in the US. Profits on foreign investment are another means to transfer capital.

    The Balance of Payments is defined as a summary of total international transactions. It is the sum of the Current Account, The Capital Account, and the Financial Account.

    The Current Account involves goods and services. The Capital Account deals with fixed assets. The Financial Account describes foreign direct investment.

    Go to Wikipedia for a good definition.

    One is not ‘better’ than the other, unless you get Lou Dobbs talking about it. Then, the one that sets him off is the ‘bad’ one … not because of the economics, but because of the noise level from him it incited.

  21. michael schumacher commented on Jan 16

    and over at Schwab they have no idea…which is not surprising either.

    The only information was that there was a buy in imbalance at 2 minutes before the open. But as far as that being a legitimate reason that would have had the opposite affect.

    Something is rotten here……..just like the impending rally as well.

    Ciao
    MS

  22. michael schumacher commented on Jan 16

    Apparently it has to do with the closing quote from AMEX and the difference between the close of the Q’s ( on the NAZ) and the close of it over the ETF…

    Overall a pretty weak argument but what it does say is that the games continue without any regard.

    In any case I am done with it….

    Seems to me it’s just another way to manipulate a large exit of some sort.

    Ciao
    MS

  23. michael schumacher commented on Jan 16

    and the last thing on that topic is that there should not have been a disconnect of that size this far into the trading day REGARDLESS of the excuse or reason.

    Wild,Wild, West

    Ciao
    MS

  24. RichardN commented on Jan 16

    I’m sure it is, schumacher, I’m sure it is…

  25. Estragon commented on Jan 16

    cinefoz,

    I’m not saying one type of flow is “better” than the other. Foreign investment brings with it the right of the investor to share in future profits though. Whether that’s “bad” depends on whether the investment results in higher profits than would have been the case had the foreign investment not been made.

    In this case, the investment will very likely be positive overall. If only we could say the same for the run-up in house prices financed at least in part by the capital (or as you noted, financial) account surplus.

  26. Eric Davis commented on Jan 16

    The other thing about the QID is it’s a fund, of stocks, and it’s very heavy aapl…

    Very heavy…. I’m not sure the percentage… but like 5-10%?

  27. dgoverde commented on Jan 16

    Dear Schuey,

    The explanation for the divergence is that QID trades on AMEX and QQQQ trades on Nasdaq. For QID, the regular session ends at 4:15. For QQQQ, it ends at 4:00. Normally, that doesn’t pose a problem, but because Intel came out with their earnings right at 4:16, some of the QID trades that executed between 4:15 and 4:19 got counted as part of the regular session, which caused QID to officially close at 46.50, even though it actually closed at 45.28. Now, it is possible for these things to trade themselves out of equilibrium, but in order to spot when that happens, you’ll want to be sure to define your own closing prices.

    Yours truly,
    Dgov

  28. michael schumacher commented on Jan 16

    I understand all of that…I did from the begining however what I do not understand is that the difference of those two indexes is still reflected in the QID trade and we are 15 minutes to the close of the NEXT day.

    That should have worked itself out already….
    Imbalance or not..

    What am I missing here??

    Ciao
    MS

  29. dgoverde commented on Jan 16

    The easiest way to compare the relationship between the two securities is to calculate the ratio between the net%chg of QID and the net%chg of QQQQ using, as your closing prices, the price that each was trading at as of 4:00pm ET. We would expect the ratio to be -2.00, on average. But there will be some fluctuations. Today, as of 3:54, the ratio is -2.1192. (I get that by taking, as the closing prices, 45.53 for QID, and 46.58 for QQQQ. My prices as of 3:54pm today are 46.40 for QID, and 46.16 for QQQQ.)

  30. Pat Gorup commented on Jan 16

    In 2007, CPI and fuel costs were at the highest level that they’d been in 18 years. The PPI was the highest it had been in over 25 years. Slower growth makes it difficult for companies to pass on their higher costs. The FED, ECB and Bank of England are all going to cut this year. So much for “inflation expectations”.

Read this next.

Posted Under