Comments on: Deflation Alert! Consumer Price Index (CPI) Down 0.2% in May

By: Robert Prechter’s Financial Predictions: June 2010 and Beyond — The Contrary Investing Report

Fri, 02 Jul 2010 20:40:39 +0000

[...] would be soaring to new highs. Specifically bothersome to him are commodities – the CRB index sits at half its 2008 price (we discussed this last week). IF we were in a hyperinflationary environment, you’d expect everything across the board [...]

By: Ben Bernanke Fed Funds Interest Rate Decision: June 23, 2010 — The Contrary Investing Report

Wed, 23 Jun 2010 19:21:22 +0000

[...] are going to stay low indefinitely because we are in a deflationary trap we cannot get out of. Consumer prices are going nowhere. Asset prices (homes, stocks, commodities) are still WAY off their all-time highs set a few years [...]

By: Brett

Brett — Fri, 18 Jun 2010 16:20:48 +0000

Legrand: Very interesting, thanks for sharing. From what I’ve read so far, I think I agree with the major parts of their premise, and recs (stay clear of most stocks, hold cash, play some inverse ETFs for speculation).

By: Brett

Brett — Fri, 18 Jun 2010 16:17:17 +0000

That’s what I’m mostly doing. I have a few speculative short positions, but that’s about it. I’m mostly in cash, hunkered down, waiting for the next wave of deflation to tear the roof off this joint.

By: Luke

Luke — Fri, 18 Jun 2010 14:40:21 +0000

Do you recommend accumulating cash ($US) while we wait for the CRB to breakout?

By: Legrand

Legrand — Fri, 18 Jun 2010 04:52:49 +0000

I get tired of talking heads mention that banks just need to let up their lending standards and deflation would stop. People and even governments to an extent are realizing that it would be smarter to limit and cut away excess credit sooner than later.
This article is interesting- wondering if you’ve followed them before and what you think about their analysis? They are definitely in the deflation camp, with a very long-term deflation view.
I enjoyed their article here about world-wide austerity and the ‘end game’ http://www.moneyandmarkets.com/glimpses-of-the-end-game-39381

By: Tempo

Tempo — Fri, 18 Jun 2010 01:38:56 +0000

Deflation is everywhere without job growth. The biggest risk IMO continues to be that the BP blowout well can’t be capped with a relief well because there the steel casing in the well collasped. Matt Simmons (a very respected expert) claims hundred of millions of bbl will leak for years. Currently the 2 mm bbls of oil is caught in a large loop current inthe GOM. This will soon change when the storm season starts and BP abandons capturing oil and the millions of bbls of toxic crap moves onshore. When people realize the leak can’t be stopped, all hell will break loose.