2 replies to this topic

[nimblebear]

So they are looking at a rate cut. economy grew at 3.9% clip. Do they even know how to spell I-N-F-L-A-T-I-O-N ???? Apparently they'd rather rip the middle class to shreds, than let the very small minority of super rich bank, hedge fundmanagers, and corporate CEO's lose a few dimes because of their ineptitude and greed. "We can't possibly let those subprime loan and derivative geniouses go under, now can we ?" P.S. and speaking of inflation the price of gas jumped 30 cents/gallon yesterday. So the middle class gets to pay 11% more for gas each month now. (at least). Merry Xmas !

[relax]

the market is stoopid, they're the one demanding the rate cut seems ridiculous, growth is good, sure it will be weaker in q4, just as q1 was weak but if benny wants to maintain a healthy stock market (and IMO this is an important goal for Fed) he needs to cut by 25 bp

[Data]

The report came out when gas prices temporarily dropped. As a result, the inflation index in the GDP dropped from 3.8 percentage points to 1.6. Nominal GDP growth is virtually unchanged between Q2 and Q3. It's all in how they interpret inflation. The spread between crude and gas is starting to widen again. We've seen a 25 cent jump in the pump price in the last two weeks. The low was $ 3 in early October. If the spread goes back out to 15-30 dollars in late Winter, we could see 3.50-4.00 dollar gas.

Edited by Data, 31 October 2007 - 09:45 AM.