Hopefully it is just hysteria. I suspect that some of this is from the black box traders whose computers can execute both sides of a trade in a fraction of a second and make a profit.
Premarket Summary: Inflationary Hysteria
Submitted by Tyler Durden on 04/10/2011 19:36 -0400
Crude PIMCO
One word (well technically two) can describe what is going on in the electronic pre-market arena right now: inflationary hysteria. Gold is at a new record, wheat is surging, corn is at highest since 2008, crude at a new 30 month high, silver is at $41.10 - a new fresh post Hunt high, beans surging, etc, etc, etc. Essentially everything is bid, following news first reported on Zero Hedge that PIMCO is betting the farm that either inflation is about to go parabolic and force bondholders to dump everything, or that the Fed will have no choice but to pursue another round of QE, sending gold to $2,000 and unleashing the Weimar endgame.
And unlike previous inflationary times, wages are locked in low and people with SS now have COLA raises. Too bad their expenses will probably go up faster.
Thomas Sowell: There are no solutions, just trade-offs.
