Interesting Inflation News Links (March 12, 2009)

* Mortgage rates turn lower this week (Newsweek)

Rates on 30-year-fixed mortgages declined this week amid reports of a weakening job market and easing concerns over inflation, Freddie Mac said Thursday.

* Shareholder files lawsuit against Sprint (Jason Gertzen, Kansas City Star)

A Sprint shareholder filed a would-be class-action lawsuit challenging whether the company propped up its stock price by avoiding timely disclosures of problems with its Nextel purchase.In a lawsuit filed Tuesday in U.S. District Court in the District of Kansas, Cora Bennett, a Sprint shareholder, stated that the company continued to &#8…

* Public expects big fall in inflation (Kathryn Hopkins, Guardian Unlimited)

Britons’ expectations for inflation over the next year dropped to their lowest level in nearly four years, the Bank of England said today.

* Gold prices gain as Wall Street wavers (Sara Lepro)

Gold prices rose Wednesday, benefiting from a quieter day on Wall Street and as the dollar fell against other currencies. Oil prices and agriculture futures sank on new evidence that global demand is falling off.

* Inflation will kill the gilt rally in the end (Ian Williams, Telegraph)

The reason the market became so excited was that the method chosen to implement QE would involve the Bank of England buying billions of gilts in the open market to put on its own balance sheet. This expansion of the Bank’s balance sheet is the modern day equivalent of printing money and has longer term inflationary implications that are anything but bullish for the longer gilts and longer corpo…

* Switch supermarkets to save money on food (Mirror)

Hard-pressed families are now struggling to put healthy food on the table as prices continue to rise.

* Buffett: The economy has fallen off a cliff (Newsweek)

OMAHA, Neb. – Billionaire Warren Buffett remains confident that Americas best days are ahead, but he says the nation likely will face higher unemployment and eventually inflation because of the current economic crisis.

* The case for a Glass-Steagall lite (John Gapper, The Financial Times)

Since, by common consent, we are immersed in the worst financial crisis since 1929, it is not surprising some of the old remedies are being considered again. More baffling is how quickly one of them is being dismissed.

* Sometimes Zimbabwe Is Just Zimbabwe (New Republic)

Asked if his “beyond the pale” comment implied a racial overtone to Sanford’s remarks, Clyburn replied:

* ‘Sell every asset except gilts’ (Telegraph)

At the end of last week, gilt prices soared and yields fell again. The market reacted positively to the Bank of England’s announcement of quantitative easing. Yet in the preceding days and weeks the market had been spooked by concerns that the bail-outs would create inflation. Why the sudden change in sentiment?


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