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Neill Massello
Guest
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 Posted:
Tue Oct 25, 2005 12:01 am Post subject:
Bush nominates Bernanke |
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Hold on to your gold. It's going to be a bumpy ride.
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Flasherly
Guest
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| Posted:
Tue Oct 25, 2005 12:01 am Post subject:
Re: Bush nominates Bernanke |
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Neill Massello wrote:
| Quote: | Hold on to your gold. It's going to be a bumpy ride.
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"Let the word games begin." -forbes |
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PeterL
Guest
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| Posted:
Tue Oct 25, 2005 12:01 am Post subject:
Re: Bush nominates Bernanke |
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Neill Massello wrote:
| Quote: | Hold on to your gold. It's going to be a bumpy ride.
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Why?
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David Wilkinson
Guest
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| Posted:
Tue Oct 25, 2005 12:01 am Post subject:
Re: Bush nominates Bernanke |
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PeterL wrote:
| Quote: | Neill Massello wrote:
Hold on to your gold. It's going to be a bumpy ride.
Why?
Who is Bernanke? Is it Bush's lady lawyer friend with no experience he |
was trying to nominate as a judge of some sort? |
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PeterL
Guest
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| Posted:
Tue Oct 25, 2005 12:01 am Post subject:
Re: Bush nominates Bernanke |
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David Wilkinson wrote:
| Quote: | PeterL wrote:
Neill Massello wrote:
Hold on to your gold. It's going to be a bumpy ride.
Why?
Who is Bernanke? Is it Bush's lady lawyer friend with no experience he
was trying to nominate as a judge of some sort?
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Read the news once in awhile. It may be important. |
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Steven L.
Guest
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| Posted:
Tue Oct 25, 2005 5:51 am Post subject:
Re: Bush nominates Bernanke |
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David Wilkinson wrote:
| Quote: | PeterL wrote:
Neill Massello wrote:
Hold on to your gold. It's going to be a bumpy ride.
Why?
Who is Bernanke? Is it Bush's lady lawyer friend with no experience he
was trying to nominate as a judge of some sort?
|
Bush's nominee to replace Greenspan.
--
Steven D. Litvintchouk
Email: sdlitvin@earthlinkNOSPAM.net
Remove the NOSPAM before replying to me. |
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Steven L.
Guest
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| Posted:
Tue Oct 25, 2005 6:04 am Post subject:
Re: Bush nominates Bernanke |
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Neill Massello wrote:
| Quote: | Hold on to your gold. It's going to be a bumpy ride.
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Definitely going to hold on to my gold.
Greenspan always raised interest rates whenever the price of gold rose
too much--just take a look at gold and the Fed rate during Greenspan's
tenure. From the little I've heard so far, I don't think Bernanke will
do that.
If Bernanke turns out to be another Arthur Burns, watch out.
--
Steven D. Litvintchouk
Email: sdlitvin@earthlinkNOSPAM.net
Remove the NOSPAM before replying to me. |
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Herb
Guest
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| Posted:
Tue Oct 25, 2005 6:11 am Post subject:
Re: Bush nominates Bernanke |
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"Steven L." <sdlitvin@earthlinkNOSPAM.net> wrote in message
news:zwf7f.1152$Rl1.73@newsread1.news.pas.earthlink.net...
| Quote: | Neill Massello wrote:
Hold on to your gold. It's going to be a bumpy ride.
Definitely going to hold on to my gold.
Greenspan always raised interest rates whenever the price of gold rose
too much--just take a look at gold and the Fed rate during Greenspan's
tenure. From the little I've heard so far, I don't think Bernanke will
do that.
If Bernanke turns out to be another Arthur Burns, watch out.
|
The price of gold rising too much would be a good proxy for inflation
heating up. I think any Fed governor would vote to raise rates if they
thought inflation was threatening.
-herb |
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TK Sung
Guest
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| Posted:
Tue Oct 25, 2005 6:27 am Post subject:
Re: Bush nominates Bernanke |
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"David Wilkinson" <david@wilkinson6337.freeserve.co.uk> wrote in message
news:djjp5d$82g$1@news7.svr.pol.co.uk...
| Quote: |
Who is Bernanke? Is it Bush's lady lawyer friend with no experience he
was trying to nominate as a judge of some sort?
That's Miers. I think Bernanke is the one who used breed Arabian horses. |
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Herb
Guest
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| Posted:
Tue Oct 25, 2005 8:01 am Post subject:
Re: Bush nominates Bernanke |
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"Steven L." <sdlitvin@earthlinkNOSPAM.net> wrote in message
news:SOh7f.1241$A63.1106@newsread3.news.pas.earthlink.net...
| Quote: | Herb wrote:
"Steven L." <sdlitvin@earthlinkNOSPAM.net> wrote in message
news:zwf7f.1152$Rl1.73@newsread1.news.pas.earthlink.net...
Neill Massello wrote:
Hold on to your gold. It's going to be a bumpy ride.
Definitely going to hold on to my gold.
Greenspan always raised interest rates whenever the price of gold rose
too much--just take a look at gold and the Fed rate during Greenspan's
tenure. From the little I've heard so far, I don't think Bernanke will
do that.
If Bernanke turns out to be another Arthur Burns, watch out.
The price of gold rising too much would be a good proxy for inflation
heating up. I think any Fed governor would vote to raise rates if they
thought inflation was threatening.
That was my point. Greenspan was willing to use the price of gold as
his leading indicator of potential inflation down the road (which is why
the price of gold has remained so low during his tenure). Other
economists don't do that. They estimate inflation with "actual" numbers
like the CPI or the PPI. The fact that Bernanke is on the record as
saying he wants to set a target for *inflation* (not gold prices)
suggests he's one of those.
The problem is that those numbers lag the price of gold. By the time
the PPI starts to soar, it's often too late. You're then forced to
drastically raise interest rates and send the economy into a recession.
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I guess I didn't make my point clearly. The price of gold rising IS
inflation. I realize that gold doesn't play as much of a monetary role as
it used to but it still largely reflects the value of money. Under
classical economic theory, the price of gold is fixed. It is the price of
money that fluctuates.
I can't believe you think the CPI and PPI are "real" numbers but the price
of gold (determined, as it is, by a relatively free market) is not. Like
the unemployment rate, inflation indices are quite debatable and are only of
use compared to themselves over time. Few think they really measure
inflation, they are just the best guesses that we have.
-herb |
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Steven L.
Guest
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| Posted:
Tue Oct 25, 2005 8:01 am Post subject:
Re: Bush nominates Bernanke |
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Herb wrote:
| Quote: | "Steven L." <sdlitvin@earthlinkNOSPAM.net> wrote in message
news:zwf7f.1152$Rl1.73@newsread1.news.pas.earthlink.net...
Neill Massello wrote:
Hold on to your gold. It's going to be a bumpy ride.
Definitely going to hold on to my gold.
Greenspan always raised interest rates whenever the price of gold rose
too much--just take a look at gold and the Fed rate during Greenspan's
tenure. From the little I've heard so far, I don't think Bernanke will
do that.
If Bernanke turns out to be another Arthur Burns, watch out.
The price of gold rising too much would be a good proxy for inflation
heating up. I think any Fed governor would vote to raise rates if they
thought inflation was threatening.
|
That was my point. Greenspan was willing to use the price of gold as
his leading indicator of potential inflation down the road (which is why
the price of gold has remained so low during his tenure). Other
economists don't do that. They estimate inflation with "actual" numbers
like the CPI or the PPI. The fact that Bernanke is on the record as
saying he wants to set a target for *inflation* (not gold prices)
suggests he's one of those.
The problem is that those numbers lag the price of gold. By the time
the PPI starts to soar, it's often too late. You're then forced to
drastically raise interest rates and send the economy into a recession.
--
Steven D. Litvintchouk
Email: sdlitvin@earthlinkNOSPAM.net
Remove the NOSPAM before replying to me. |
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Ed
Guest
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David Wilkinson
Guest
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| Posted:
Tue Oct 25, 2005 3:16 pm Post subject:
Re: Bush nominates Bernanke |
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Ed wrote:
when I got round to looking at it. Nothing on the TV news though that I
noticed. I don't think Fed Chairmen count as all that newsworthy over
here in the UK.
Strangely, although the Dow zoomed up 1.66% on his appointment, the UK
seems less than thrilled and the FTSE100 is down 0.27%, showing the UK
and US are not as correlated as we might think. |
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Ed
Guest
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| Posted:
Tue Oct 25, 2005 4:01 pm Post subject:
Re: Bush nominates Bernanke |
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"David Wilkinson" <david@wilkinson6337.freeserve.co.uk> wrote
| Quote: | Strangely, although the Dow zoomed up 1.66% on his appointment,
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I thought the rally was due to oil dipping below $60. I still think so even
though it finished slightly above. Gasoline prices have been dropping as the
refineries begin to come back on line. |
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David Wilkinson
Guest
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| Posted:
Tue Oct 25, 2005 4:01 pm Post subject:
Re: Bush nominates Bernanke |
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Ed wrote:
| Quote: | "David Wilkinson" <david@wilkinson6337.freeserve.co.uk> wrote
Strangely, although the Dow zoomed up 1.66% on his appointment,
I thought the rally was due to oil dipping below $60. I still think so even
though it finished slightly above. Gasoline prices have been dropping as the
refineries begin to come back on line.
Could be. A quote though from Finance.Yahoo: "U.S. stock market futures |
drifted lower Tuesday in what can be either seen as profit-taking after
the biggest one-day gain in six months or a renewed evaluation of Ben
Bernanke, the next chairman of the Federal Reserve." |
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