Sep

20

An old time book well worth reading is A Century of Prices by Theodore Burton and G.C Selden.

It suggests that high commodity prices are bearish for interest rates
because it requires more capital for all inventory and investments with
high prices. I wonder if this could be tested.

The book is very suggestive of many hypotheses. From 1919.


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2 Comments so far

  1. jb on September 22, 2017 12:22 pm

    Excellent Read. Do you have any others?

  2. Scott on September 24, 2017 9:07 pm

    The book says exactly the opposite. More capital required is bearish for bonds and bullish for rates, as there is a smaller supply of capital available to borrow, as it is tied into commodities and projects that require them.
    https://books.google.com/books?id=qOIZAAAAYAAJ&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false

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