Problem is they also have said they will not monetize the oil hike by lowering rates. So they're caught in a catch 22 slowing economy rising interest rates. Dammed if they do dammed if they don't. Only got 1.75% to play with in case of an emergency.
monetize-To convert (government debt) from securities into currency that can be used to purchase goods and services.
I just heard someone om "Wall Street Week with Fortune" remark about the consumer - the consumer has taken money out of his house for spending and is leveraging up. This process can only continue for so long - maybe we are beginning to see the first signs of a slowdown. There seems to be a consensus that no matter who gets in - 2005 will see a slower economy. If oil continues to be at this level and it now appears the White House can't or won't do anything about it - this could be a main driver to another recession. Recall that in 2000 oil was going back up when the bear market started. This action now could start a new leg down.
Man I hope your wrong pal. I need GOOG to fill the gap to 150 first. Then everything will be great. I sense market crash myself. How come the inflation index shows benign inflation? It's bull shit. Everything has gone up. Oil, gold,natural gas, plastics, steel,etc. everything.