Thursday, May 18, 2006

Stock market nervousness is real!

Investors are worrying that the Fed will keep increasing interest rates to slow inflation. I am afraid that is going to happen and the Fed will eventually cause the economy to slip into a Recession. It is history repeating itself. But this time Oil is at $75/barrel, not $30/barrel. Greenspan has created a number of Recessions in his tour as Fed Chairman. The new Fed Chairman does not want his first year to be recorded as the time the Fed let inflation get away from them. But it is evident from the recent increase in food prices, that the cost of gas is having its negative affect causing the cost of most things to go up. Compounding the problem is the fact, that the Dollar is down, relative to the EU and the Yen, making our purchasing power less than previous periods in our history. The reason for this is that our National Debt under this President has moved both as the highest rate of growth and absolute growth in the history of this nation. All the money spent on a war of choice in Iraq, inept leadership on the Katrina recovery, highest oil prices in history and tax cuts for the wealthiest Americans being passed at every turn. It is a sad day in our history when we all want a different President and VP, and a different party in Congress. We are all fed up and need a change soon as many of us wonder what mischief can happen with another 2 plus years left with this President/VP in power. God help us and those that hope for a better life. Try Mexico or Europe. You won't be finding it here anytime soon.


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