Posted on 11/16/2004 7:26:41 AM PST by roaddog727
WASHINGTON - Propelled by sharply higher energy and food costs, wholesale prices soared by 1.7 percent in October, the largest increase since early 1990.
(Excerpt) Read more at msnbc.msn.com ...
One thing to consider here is the Fuel/Transportation component of wholesale prices.
I expect a large portion in this increase is attributable to the cost of Oil.
Have at it, folks.....
It'll probably be down in Nov...
Yep.
All the nervous nellies on the street are having a mild melt down right now.
That'll pass too.
You say that as if it should somehow discount the news. Are you saying that one wholesale commodity is distorting the overallpicture? But isn't the cost of energy embedded in the price of just about everything? When energy makes the cost of goods sold go higher, doesn't that mean either a)profits falter or b)prices go up?
ARGH! BUSH'S FAULT! ALL BUSH'S FAULT!!!
Yes,
Higher prices for all goods are a logical consequence higher fuel prices.
Prices go up and profits falter. the amount that profits falter and prices increase are a function of:
1) Mangent tolerance to pricing pain and
2) Price elasticity of demand.
Goldilocks economy - not too robust, not too weak.
In my opinion, this market is a keeper, folks.
And ironically mainstream media is an ally in this.
Easy money.
Now, of course oil prices are the reason for the brief uptick on inflation numbers. The point is that oil is unsustainable at the present price levels and is only justifying new drilling and alternative fuel research that will further erode prices.
Somebody didn't want Bush re-elected, but the strategy of artificially inflating oil prices didn't work.
Anyway, you really can't have it both ways.
A booming economy always has some inflationary impact, but that is no reason to not participate.
Full employment means competition for services, and people can demand wage increases. Oh well, better than unemployment for the economy, isn't it?
Is there a danger of THIS economy going from life-support to red-hot WITHOUT a period of opportunity for investors? Absolutely ridiculous!
We are moving positively forward from some of the best fundamentals ever.
A great gift to savvy investors is the brainwashing of the public by mainstream media. The economy has been good but telling us would have ensured Bush's re-election, so they lied somewhat.
Bush policies over the next 4 years will be very, very good to this economy.
Jump in now in my opinion, as much of risks are now removed from the market. Buy growth stocks, and for at least the next 3 years, and make a fortune.
Good analysis.
Well by your mindset if prices go up, inflation happens. But we all know that isn't true, the Fed said inflation was only 1% (but my bank says 2.5% hmmm??) and if salaries remain relatively EXACTLY the same, does that mean we're all richer?
This will go down, as oil has gone down, now that the leftists are done driving up the oil futures prices in attempts to keep Bush from winning re-election.
That was gonna be my next question. What is the difference between inflation and prices going up?
One is the symptom of the other, question is, which is which. :0)
"This will go down, as oil has gone down,"...
Yes. THe demand was artificially high due to speculation, etc.
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