Tuesday, September 18, 2007
The high finance boys whooped it up today on Wall Street after the Fed cut rates by a full half percent (OK, don't taunt me for predicting a 25 point cut; from what I read of the Fed's statement afterwards, there seemed to be a caution that the financial market shouldn't expect anymore, so maybe the Fed decided to do the opposite of ripping the band-aid off - they ripped it on). But, I was right about the immediate reaction in the commodity markets: oil shot up close to an all time high of over $82 a barrel (note, in a complete absence of bad news in the oil producing world), gold now costs over $730 an ounce, and the dollar fell to an all time low against the Euro. No doubt some people made alot of money today in the market (I'll bet Cheney's Old Europe bonds did fabulously), but all that money is going to buy us less. You might want to top off the gas tanks and stock up on imports, a.k.a. everything. The next bubble: stuff.