Interest rates now heading down.
The economy is actually quite strong (contrary to public opinion.)
Inflation to surely re-ignite.
Oil reacting (or forecasting) accordingly - it keeps going up. If oil traders actually thought economy was weak, I'm fairly sure it would be heading a different direction.
Gold has now exceeded may '06 high.
So, We know what's in every American's wallet - PLASTIC. So as if we don't have enough problems with a huge overhang of debt (and problems with credit), the Fed pulls out its magic wand and says, WALA.
"Markets shallt rise from the dead." (not that they were dead, mind you, it just sounds good.)
You'd have thought we were in a depression the way the folks were crying for a rate cut. We are not even friggin' close to a depression. (I can tell you here in the midwest, employers are screaming for quality employees - the pipeline is dry.)
China's gotta be loving the Fed's move.... America will renew its zeal for more and more stuff from everywhere.
So whats to prevent :
Gas from going over $4/gal ?
Oil from going over $100/barrel ?
Energy costs for your home increasing 10-15% per year for at least the next decade ?
Food including bread, milk, meat, other diary, from going up at a rate of 5-10% per year, or more ?
Costs of building materials from skyrocketing ? (demand from abroad)
Healthcare costs from really wiping us out ? (with all the bogus universal coverage plans being bantered about) ?
So it must be better to have ridiculous levels of inflation and bleed to death over time, than to let the business cycle do its necessary healthy cleansing, and perhaps investing and saving ( rather than spending and indebting) ?
I think it boils down to one thing - greed. We are going to pay our debts to folks with dollars that will be worth less and less over time.
The market has to go up, to keep pace with the falling dollar. There is no other choice.
Edited by nimblebear, 18 September 2007 - 09:53 PM.
