Thursday 18NOV2010 1246GMT
OK, so I had my giggle at the hyper-inflation headless chooks.
Time to get serious (unfortunately a bit late).
Read this article:
THE DISINFLATION TREND ROLLS ON at The Capital Spectator (outstandingly good blog).
… So, yesterday’s CPI data strengthens the case for continued QE (pls note this conclusion is a real-world, practical one, it is concluding what the impact of the CPI data will be upon the Fed thinking and therefore action. It isn’t saying its right or wrong, it is just saying what it is. Feel free to wail and gnash teeth if you hate QE2 and Bernanke, but don’t confuse wailing and gnashing of teeth with having a clue to what is actually going on).
So, why have I said I am a bit late? Well, look at the reaction of the ES. 1190-ish as I type (still just under 2 hours until cash open). Mind you, China up about 1.5% is helpful, too (maybe even more so …). Oh, and Ireland looks like it might be about to accept bailout cash too.