Bending the Third Rail
Because We Should, We Can, We Do
Monday, April 03, 2006
Econ
I was going to do a big write up summarizes several things I've been reading about the economy. Instead, I'm just going to point you to this post by Barry Ritholtz of The Big Picture. He does a fine job in general, and this post is a particularly good summary of the strangeness that is this economic recovery.

I agree with Barry that the Fed will continue to raise interest rates, despite a tepid recovery. Bond traders apparently agree because the yield curve is flattened again, instead of being inverted (inverted often means recession coming).

Where I might take issue with Barry is that I think inflation is likely to grow due to energy price increases ..... totally unrelated to economic growth. And when you have rising prices with rising interest rates and with slowing growth/recession, it's called stagflation.

Go read Barry. He states the case in really easily understandable language.
Written at 3:11 PM by Greyhair.
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