Bernake speaks – Ship shutters towards the shoals of recession

Best quote of the day, “Credit risk aversion”

Before Fed Fund chief Bernake speaks I’ll venture out on a limb and say that we’re in for another round of interest rate cuts.  I’ll explain.

  1. Currently the Fed Fund Rate is 2 1/2 points below it’s high.
  2. Mortgage rates are higher now than a month ago.
  3. Credit card companies are increasing your rates because of “Credit risk aversion” while under the radar of the regulator’s.  This is because while everyone is focusing on the big boys’ risks the regulators are missing the usury rates being charged and raised by Credit companies of all kinds.
  4. Gold is up $12 today.
  5. Oil is up over $101

I’m betting inflation is rising.  I know my living costs are going up and I expect they shall continue to rise. 

Can we say 12,000.  The stock market looks like it hit the ceiling yesterday.  And if we get another rate cut, foreign investors should find it too expensive to invest when they can get a higher rate in their own countries. 

Fear is not only entering the thoughts of the investor but also the minds of the consumers.  Want proof?  Check out retail sales.  Check out home sales.  Check out industrial utilization.  

I’ll be back… Benake is just coming on.

Patrick

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One Response

  1. Thought I’d make it back for this. For the benefit of my readers;

    “The Titanic didn’t sink in a heartbeat.”

    Patrick

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