Recent

% | $
Quotes you view appear here for quick access.

Fifth Street Finance Corp. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • wiseinvestor338 wiseinvestor338 Feb 22, 2012 3:40 PM Flag

    Time to exit?

    You would love this article:

    http://www.forbes.com/sites/louiswoodhill/2012/02/22/gasoline-prices-are-not-rising-the-dollar-is-falling/

    and I quoted:

    "Federal Reserve Chairman Ben Bernanke uses a “core CPI index” that excludes food and energy to guide monetary policy. From Big Ben’s point of view, rising gasoline prices are not a problem. For the rest of us, they are becoming a big problem."

    "Right now, the threat posed by rising gasoline prices is not just to family budgets. An even greater danger is that the government will use escalating oil prices as an excuse to do something stupid.

    After President Nixon abrogated the Bretton Woods monetary arrangement in stages starting in September 1971, both gold prices and oil prices started to rise. The government responded by imposing wage-price controls. This made a bad situation much worse."

    "This time around, the stupid policies being considered to “deal with” rising gasoline prices include additional cuts in payroll taxes and higher taxes on energy producers.

    During the 1970s, the toxic combination of a weak dollar, high tax rates, and onerous regulations introduced a new word into America’s economic vocabulary: stagflation. Reaganomics banished this word to the history books. Now, President Obama and Fed Chairman Bernanke are teaming up to give stagflation another try. It is not likely that Americans will like it any more this time around than they did 40 years ago."

    I believe when I started college in 74, gas was around 39 cents a gallon (some record said 26.9 cents, some said an average of 59 cents), but I remembered within a year the price has gone up to between 69 cents to 73 cents a gallon. Small cars were sold with a premium when I graduated in 1978. The average price of gas was 0.66 per gallon in 1978, then went up to around 1.43 in 1981. In 1982, interest rate went up to as high as 21%.

    Will history repeat itself, I surely hope not....

    But....

    If who ever we elect (or re-elect) into White House this year does the wrong things....

    Well...

 
FSC
6.53-0.02(-0.31%)Jul 1 4:00 PMEDT