BEST OF “Cold” CONFIRMATIONS

May 1, 2005

Last week, I wrote about Alan Greenspan’s denial of any inflation. Today, I got two confirmations that he’s wrong, I’m right (not that I compare myself to him in anything other than in this one issue).

Sitting in my back yard with a sweater barely keeping me warm (It’s May Day here in Houston and we’re looking at temperatures in the lower 50′s or upper 40′s tonight and tomorrow night- miracles still happen), I had a conversation with a man who told me that his company is having to raise prices 6% PER QUARTER to keep even with the rising costs of the goods that go into making his product! He manufactures and sells tires to retailers.

What better confrmation that a person on the front line? Ahh, glad you asked. How about the second-richest, first-smartest person in the world when it comes to the economy, etc? No, not him (whoever you were thinking). I’m talking the Sage of Omaha, Warren Buffett.

Saturday at his annual shareholders meeting he advised his audience that they needed to make sure their strategies for investment took into account INFLATION because it was here NOW. That’s confirmation enough for me.

Now, I’m shutting down my lap top as my fingers are COLD, seriously. It’s just 7:10 pm as I write this (Saturday) and I feel like I’ve been translated to San Francisco, or better yet, Santa Rosa. Amazing weather. Am I dreaming: Houston? Oh yeah!

Written by Ernie · Filed Under Daily Commentary