Friday, February 19, 2010

Oil And Fed Rates Are Up!

Oil is inching back up past $80 / barrel today, as the Fed's confidence in our economic strength improves.

Because the banks have regained strength by continuing the practices that caused the crisis to begin with, the Fed is now ratcheting up interest rates.

If we couple this with reports that China and a few other nations are focusing on there industrial economies, I think it's very likely that we'll see crude oil prices continue to rise.

Based on this, I'm going to predict that the next economic dislocation in the US will hit in May. This is a month out from the next business quarter.

This gives bankers and businesses time to digest the increasing costs that will be reported for this quarter, and to see that projections for the next quarter look worse.

The Fed will soon be dropping the discount window rate.


At 11:20 AM, Blogger edgar said...

Teh bankstas iz going to kill the trannies. Poor trannies.

At 2:10 PM, Blogger Kitty said...

Hi Edgar...

Earl... the new reserve currency...


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