tag:blogger.com,1999:blog-12897315.post8274794223830218564..comments2024-03-28T09:54:55.115-05:00Comments on Dad29: More/More Credit Lockup?Dad29http://www.blogger.com/profile/08554276286736923821noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-12897315.post-22421913108755099882008-09-25T11:49:00.000-05:002008-09-25T11:49:00.000-05:00Thank you.Thank you.Grimhttps://www.blogger.com/profile/07543082562999855432noreply@blogger.comtag:blogger.com,1999:blog-12897315.post-73649040239000202802008-09-25T11:13:00.000-05:002008-09-25T11:13:00.000-05:00The latter--"..either A or B is likely..."But reca...The latter--"..either A or B is likely..."<BR/><BR/>But recall that the USD is "relative" in value to other currencies. Thus, inflation actually depresses the value of the USD relative to petroleum, or gold.<BR/><BR/>That's one of the reasons that petroleum's price went higher--too many dollars were chasing a bbl of oil.<BR/><BR/>Chalk THAT up to Greenspan's jamming mega-zillions of dollars into the economy since 1989 or so (the DowDrop of 500 points).Dad29https://www.blogger.com/profile/08554276286736923821noreply@blogger.comtag:blogger.com,1999:blog-12897315.post-15447259273950498802008-09-25T10:20:00.000-05:002008-09-25T10:20:00.000-05:00Interesting.If we're seeing a crisis in the availa...Interesting.<BR/><BR/>If we're seeing a crisis in the availability of money, though, shouldn't that decrease inflation? If people are chasing dollars, shouldn't the dollar buy more?<BR/><BR/>In other words, why would you expect both inflation and also a credit lockup (i.e., why "both elements could be driving up the price of money")? Or do you mean that investors think that either A or B is likely, and either way they need to hedge in this fashion?Grimhttps://www.blogger.com/profile/07543082562999855432noreply@blogger.comtag:blogger.com,1999:blog-12897315.post-89565358775353685802008-09-25T05:54:00.000-05:002008-09-25T05:54:00.000-05:00You probably know what this means even though the ...You probably know what this means even though the quotes use some 'shop-talk.'<BR/><BR/>Rates have gone up, quickly, even for AAA credits such as Caterpillar and Honda.<BR/><BR/>The cost of money is rising; there are TWO possibilities: either 1) investors expect more rapid inflation (a good possibility) OR 2) money is harder to get.<BR/><BR/>Both elements could be driving up the price of money--but with the capital markets being hampered by the banks' lending problems, I'm inclined to think that the proximate cause is the credit lockup.Dad29https://www.blogger.com/profile/08554276286736923821noreply@blogger.comtag:blogger.com,1999:blog-12897315.post-10353115842140280122008-09-24T22:05:00.000-05:002008-09-24T22:05:00.000-05:00Would you take a moment to explain that? I'm not ...Would you take a moment to explain that? I'm not as well read on complex financial instruments as apparently I should be. I'm a reasonably quick study, though, if you'll take the time.Grimhttps://www.blogger.com/profile/07543082562999855432noreply@blogger.com