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A part of the PIE report. I thought that it might be iof interest.
These people who believe in a soft-landing ignore the
fact that inflation is brewing as witnessed by auto insurance
premiums that are rising at double-digit rates in many parts
of the US. As witnessed by health-care costs that are also
rising again. As witnessed by oil that can't seem to stay
below $30/bbl on Nymex. As witnessed by a broad based
commodity rally (see the CRB). As witnessed by record
low unemployment levels and rising labor costs. No matter
what tomorrow's figures bring, inflation is not going to go away.
We are just now starting a commodity bull market that will take
us higher into 2007. What many overlook is that a Nasdaq
correction is actually inflationary. Employees who were
previously quite happy to take much of their compensation
in stock options will not be so happy to continue to do so.
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