Saturday, May 14, 2011

Producer Price Index's Incredible Rise

The economy has been tanked for some time, but these prices just keep going up.  If JPMorgan Chase is doubling its commodities trading, it's a good guess that the other big banks are doing the same thing.  According to this CNBC article, JP Morgan gobbled up 10 billion dollars in commodities in the first quarter—that's a lot of contracts!  I'm sure they are not alone as all these big banks mirror each others' trades.  This chart sure does look frothy and speculative-bubble like.  When the Chinese bubble finally deflates and all the big banks dump their speculative positions this whole chart will deflate wildly into the abyss!  And then we'll re-regulate, but the modern day robber barons will have moved onto their next game.