Thursday, April 15, 2010

Inflation on the March

Markit's CMBX indices of commercial real estate securitized values has been soaring recently. Reflation is, more and more, here. Not to mention inflation. The NY Fed's Empire State Mfg Survey was out today, showing much more cost of goods price increases over selling price increases. Barring a big change in trend, the next step is business raising their selling prices to keep their margins up. Cash is, more and more, trash, but where it should be deployed is a very difficult decision.

For now, in addition to passive savers, the current losers are small businesses and much of labor.

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