Quote:
Originally Posted by jcwang
Crude prices set yet another record as traders balance weak jobs report with dollar's decline.
http://money.cnn.com/2008/03/07/mark...ion=2008030711
I blame this on Federal Reserve's cutting interest rate 1.25% in such a short period ot time.
It did not ease the subloan crises, it did not help those has trouble paying their mortgage, it certainly did not help our economy. On the contrary, it's like adding insult to injury, foreign investors no longer invest in US currency, the inflation is going to go out of control any minutes, the oil price is still continuing to rise, national debt increase dramatically by day, Baby bloomers trying to survive with fixed income.....
I don't know what our government can do for middle class Americans anymore. Really. |
Eh your statements are not entirely factual, as it is way to soon to tell how short term interest rate cuts will affect the economy over the next 5 years.
"But Alan Skrainka, chief market strategist with Edward Jones in St. Louis, disagreed with that interpretation. He said Wall Street was cheering the rate cut because it proves the Fed is willing to take any moves necessary to ensure the economy is not derailed by problems in the subprime mortgage market, loans made to consumers with less-than-perfect credit.
"We're having champagne and cookies," Skrainka said. "This is not a magical elixir that solves our subprime problems overnight, but it is a big step in the right direction to keep the economy growing. The Fed is sending a strong message that it won't get behind the curve," he added."
http://money.cnn.com/2007/09/18/news...ates/index.htm
Oil is on the rise because of a) SHARP increase in demand from both China and India, who have the number 1 and 2 population in the world, respectively, and b) because oil is tied to the dollar, so as the dollar falls, oil prices rise. There is speculation that Iran is bribing OPEC members to vote "no" to increase production simply to strain the west, which sounds likely, but again, speculation.
Not investing in the US? There is a ton of foreign investment in the US right now because the dollar is so weak. It's the paying it BACK that's gonna be rough. Whether it's China buying up T-Bills or Abu Dhabi bailing out Citigroup, there is a little TOO much investment going on if you ask me, but only time will tell.
Your tone sounds a little pessimistic and alarmist, this is not the first time the US has hovered over a recession, it's just another cycle of borrowing vs repaying, albeit the deck is a little more stacked against us this time. A pragmatic approach to this would be wise.