[stansd]

The Euro is overvalued.

-At my company, our European workers are substantially more expensive than our American ones now, who are in turn, much more expensive than our latin american ones.

-My old boss is moving to Geneva: you wouldn’t believe all the ski equipment and everything else he’s buying here prior to moving-it’s 2-3 times cheaper.

-Every time someone visits from Europe, they head to the mall for a shopping spree.

-My international stock fund has begun hedging it’s Euro risk because it thinks the currency is overvalued (Never happened before-one reason I bought in several years ago).

-the Purchasing power parity models I’ve seen confirm the above.

If our govenment inflates the heck out of the money supply (a real possibility), that could be one way to bring this back into balance, but I’d consider hedging currency risk beyond the Euro if you are worried about the dollar.

Stan

[stansd]

The Euro is overvalued.

-At my company, our European workers are substantially more expensive than our American ones now, who are in turn, much more expensive than our latin american ones.

-My old boss is moving to Geneva: you wouldn’t believe all the ski equipment and everything else he’s buying here prior to moving-it’s 2-3 times cheaper.

-Every time someone visits from Europe, they head to the mall for a shopping spree.

-My international stock fund has begun hedging it’s Euro risk because it thinks the currency is overvalued (Never happened before-one reason I bought in several years ago).

-the Purchasing power parity models I’ve seen confirm the above.

If our govenment inflates the heck out of the money supply (a real possibility), that could be one way to bring this back into balance, but I’d consider hedging currency risk beyond the Euro if you are worried about the dollar.

Stan

[stansd]

The Euro is overvalued.

-At my company, our European workers are substantially more expensive than our American ones now, who are in turn, much more expensive than our latin american ones.

-My old boss is moving to Geneva: you wouldn’t believe all the ski equipment and everything else he’s buying here prior to moving-it’s 2-3 times cheaper.

-Every time someone visits from Europe, they head to the mall for a shopping spree.

-My international stock fund has begun hedging it’s Euro risk because it thinks the currency is overvalued (Never happened before-one reason I bought in several years ago).

-the Purchasing power parity models I’ve seen confirm the above.

If our govenment inflates the heck out of the money supply (a real possibility), that could be one way to bring this back into balance, but I’d consider hedging currency risk beyond the Euro if you are worried about the dollar.

Stan

[stansd]

The Euro is overvalued.

-At my company, our European workers are substantially more expensive than our American ones now, who are in turn, much more expensive than our latin american ones.

-My old boss is moving to Geneva: you wouldn’t believe all the ski equipment and everything else he’s buying here prior to moving-it’s 2-3 times cheaper.

-Every time someone visits from Europe, they head to the mall for a shopping spree.

-My international stock fund has begun hedging it’s Euro risk because it thinks the currency is overvalued (Never happened before-one reason I bought in several years ago).

-the Purchasing power parity models I’ve seen confirm the above.

If our govenment inflates the heck out of the money supply (a real possibility), that could be one way to bring this back into balance, but I’d consider hedging currency risk beyond the Euro if you are worried about the dollar.

Stan

[stansd]

The Euro is overvalued.

-At my company, our European workers are substantially more expensive than our American ones now, who are in turn, much more expensive than our latin american ones.

-My old boss is moving to Geneva: you wouldn’t believe all the ski equipment and everything else he’s buying here prior to moving-it’s 2-3 times cheaper.

-Every time someone visits from Europe, they head to the mall for a shopping spree.

-My international stock fund has begun hedging it’s Euro risk because it thinks the currency is overvalued (Never happened before-one reason I bought in several years ago).

-the Purchasing power parity models I’ve seen confirm the above.

If our govenment inflates the heck out of the money supply (a real possibility), that could be one way to bring this back into balance, but I’d consider hedging currency risk beyond the Euro if you are worried about the dollar.

Stan

[stansd]

The Fed issued a press release that it has no plans to buy MBS (which incidently just struck me as a funny name given the last two letters).

I had a conversation with a colleague yesterday where I suggested the market had another 20% to go. He looked at me like I was crazy and then said CA is in deep trouble if that happens. It did get me thinking: If the Fed/Govt are willing to pull out the stops they have pulled out for the current decline, what on earth would they do at another 20?

Either they are good forecasters, we are bad ones, or the feces will really hit the oscillating device if prognostications around here come true.

Stan

[stansd]

The Fed issued a press release that it has no plans to buy MBS (which incidently just struck me as a funny name given the last two letters).

I had a conversation with a colleague yesterday where I suggested the market had another 20% to go. He looked at me like I was crazy and then said CA is in deep trouble if that happens. It did get me thinking: If the Fed/Govt are willing to pull out the stops they have pulled out for the current decline, what on earth would they do at another 20?

Either they are good forecasters, we are bad ones, or the feces will really hit the oscillating device if prognostications around here come true.

Stan

[stansd]

The Fed issued a press release that it has no plans to buy MBS (which incidently just struck me as a funny name given the last two letters).

I had a conversation with a colleague yesterday where I suggested the market had another 20% to go. He looked at me like I was crazy and then said CA is in deep trouble if that happens. It did get me thinking: If the Fed/Govt are willing to pull out the stops they have pulled out for the current decline, what on earth would they do at another 20?

Either they are good forecasters, we are bad ones, or the feces will really hit the oscillating device if prognostications around here come true.

Stan

[stansd]

The Fed issued a press release that it has no plans to buy MBS (which incidently just struck me as a funny name given the last two letters).

I had a conversation with a colleague yesterday where I suggested the market had another 20% to go. He looked at me like I was crazy and then said CA is in deep trouble if that happens. It did get me thinking: If the Fed/Govt are willing to pull out the stops they have pulled out for the current decline, what on earth would they do at another 20?

Either they are good forecasters, we are bad ones, or the feces will really hit the oscillating device if prognostications around here come true.

Stan

[stansd]

The Fed issued a press release that it has no plans to buy MBS (which incidently just struck me as a funny name given the last two letters).

I had a conversation with a colleague yesterday where I suggested the market had another 20% to go. He looked at me like I was crazy and then said CA is in deep trouble if that happens. It did get me thinking: If the Fed/Govt are willing to pull out the stops they have pulled out for the current decline, what on earth would they do at another 20?

Either they are good forecasters, we are bad ones, or the feces will really hit the oscillating device if prognostications around here come true.

Stan

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

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