Bending the Third Rail
Because We Should, We Can, We Do
Wednesday, May 17, 2006
Uh oh
The CPI (Consumer Price Index) came in at .6%. That would be an annual 7.2% rate.

But but but ... I thought that rising commodity prices and rising energy prices weren't causing inflation these days? That mean ole' Fed better get on the raising interest rates bandwagon pretty darn soon!

Please allow me to beat my deadhorse. What do you call a slow economy that has a high inflation rate?

Stagflation.

Fortunately, I got out of the stock market about a week ago. Between the rising energy prices, rising commodity prices, record gold prices, the Iran mess, the Iraq debacle, the old-in-the-tooth-and-tepid expansion, and the traditional doldrums summer trading, it's time to protect capital and wait for another buying opportunity.
Written at 9:29 AM by Greyhair.
1 comments
1 Comments:
Blogger mikevotes said...
You know I came by when I saw the news.

Everytime I hear bad economic news I think of you.

How does it feel to hear that? Hah.

Mike
12:19 PM  
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