6 ms·

The report estimates an inflation rate of 2.7% but the core inflation rate is currently much closer to 1.7%. They therefor underestimated the cost of the loan

The report estimates an inflation rate of 2.7% but the core inflation rate is currently much closer to 1.7%. They therefor underestimated the cost of the loan which will make solar panels more expensive.

cma 12y ago
But core inflation excludes energy costs..
- dragontamer 12y ago
  Energy costs are much lower today. Have you noticed the $2.00 gas signs?
  - toomuchtodo 12y ago
    You should not confuse a temporary turf war between tight oil drillers and the Sauds with long-term energy cost inflation. $2/gal isn't sustainable for anyone except consumers, and it won't last more than a few months.
    - dragontamer 12y ago
      I'll give you that point. Although note that Russia, Iran, and ISIS are sanctioned right now, so keep that in mind for the short-term. Supply is BOTH artificially constrained and artificially inflated right now. But it isn't obvious to me that gas prices should go up or down. http://i.imgur.com/COkbBnD.jpg http://i.imgur.com/COkbBnD.jpg
    - maxerickson 12y ago
      My thinking is that the Saudi actions right now are more geopolitical than they are aimed at the oil market. I guess the oil market itself is pretty geopolitical, but I see a strong possibility for some anti-Russia, anti-Isis quid pro quo between the US and Saudi Arabia. (It's win-win for them if they put the pinch on new production, I'm just not sure they are hugely concerned with that)
    - tdaltonc 12y ago
      Oil futures for 2020 are trading at $67/barrel. If you think that's low, maybe you should buy some. If you think that's right, maybe this will last more then a few months.
      - toomuchtodo 12y ago
        I stick to equities and food commodities for trading. Trading oil at my scale (<$10MM/year volume) is like walking into a Mos Eisley cantina inebriated and with cash hanging out of your wallet. I'll make you a Long Bet [1] though if you're interested (a beer of your choice if you're right). [1] http://longbets.org/ http://longbets.org/

cma 12y ago

But core inflation excludes energy costs..

dragontamer 12y ago
Energy costs are much lower today. Have you noticed the $2.00 gas signs?
- toomuchtodo 12y ago
  You should not confuse a temporary turf war between tight oil drillers and the Sauds with long-term energy cost inflation. $2/gal isn't sustainable for anyone except consumers, and it won't last more than a few months.
  - dragontamer 12y ago
    I'll give you that point. Although note that Russia, Iran, and ISIS are sanctioned right now, so keep that in mind for the short-term. Supply is BOTH artificially constrained and artificially inflated right now. But it isn't obvious to me that gas prices should go up or down. http://i.imgur.com/COkbBnD.jpg http://i.imgur.com/COkbBnD.jpg
  - maxerickson 12y ago
    My thinking is that the Saudi actions right now are more geopolitical than they are aimed at the oil market. I guess the oil market itself is pretty geopolitical, but I see a strong possibility for some anti-Russia, anti-Isis quid pro quo between the US and Saudi Arabia. (It's win-win for them if they put the pinch on new production, I'm just not sure they are hugely concerned with that)
  - tdaltonc 12y ago
    Oil futures for 2020 are trading at $67/barrel. If you think that's low, maybe you should buy some. If you think that's right, maybe this will last more then a few months.
    - toomuchtodo 12y ago
      I stick to equities and food commodities for trading. Trading oil at my scale (<$10MM/year volume) is like walking into a Mos Eisley cantina inebriated and with cash hanging out of your wallet. I'll make you a Long Bet [1] though if you're interested (a beer of your choice if you're right). [1] http://longbets.org/ http://longbets.org/