[lbo-talk] Fed driving commodities bubble?

Myles Sussman myles.sussman at gmail.com
Sun Apr 10 23:45:59 PDT 2011


Posted on dailyKos ref: http://www.dailykos.com/story/2011/04/10/965696/-Commodities-Bubble-Correlated-to-Fed-QE

"The Federal Reserve's quantitative easing<http://money.cnn.com/2010/11/03/news/economy/fed_decision/index.htm>program has driven a bubble in commodities<http://www.efinancialnews.com/story/2011-04-06/commodities-bubble-fund-manager?mod=blogheadlines-home>.

The correlation can be seen in this chart:"

http://img217.imageshack.us/i/fedcomm.png

The graph inconveniently starts in 2009.

But round one of the bubble would have occurred in 2007-2008. So I'm not sure what to make of the claim about the fed causing the bubble.



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