Bill. The CPI number came in quite high - 0.6 but the core rate was 0.3. Originally it did the markets in but I believe that lots of market players already had the suspicion that the CPI would be up after the PPI numbers came out. It could be a one time thing just like the PPI number. But then I heard Larry Kutlov say at one time that recession breeds inflation.
Natural gas price was the biggest culprit in this CPI number. Yes, that last rate hike by the FED did the economy in but good even so I never believed that we needed rate increases at all. And yes, after the FED made those interest blunders they should have def. cut interest rates in November.
There are lots of things that can be done but NOT cutting taxes is not one of those things imo. I know what you and some others are saying. Cutting taxes won't help. I disagree. Spending it all in Congress won't help. You can't reduce the deficit much more at any one time than we already do and if you get a retroactive tax cut, it will put more money into the economy. When you get a pay raise, people normally spend more money and if you know that a tax cut is coming and you know that marginal rates will be cut, a lot of people will spend a bit more.Even if everybody just buys a Muffler, it will help. gg. And if the economy slows down longer than expected, and nobody is sure right now how long it will last, it will be like an insurance policy. Greenspan's words.
I don't believe that pulling out of the Mideast at this time is advisable.
Yes, this Chavez is a pretty big oil hawk. I know that oil can't stay as low as it was last summer. Oil has to be at a price where business can make some money. Texas is a good example. When oil prices are too low, oil output shuts down over here and is also hurting oil producing countries but what is going on now, is insane. Yes. We have to start being a little more self efficient. No way around it. Just look how CA is suddenly building their electric power plants faster despite outcries from environmentalist. In the meantime they get energy from other States including Texas and before all this you didn't hear a kind word about Texas, energy wise.
Oops. I had more to say but I got to run.
BTW. It looks like Emlx IS making better stock gains, once it moves, than EMC and NT. EMC is down again quite a bit. I heard last night that storage stocks may go up today because BRCD is expected to come in alright or may even surprise.. Well, some storage stocks are up all day. Maybe I will look at EMLX tomorrow after BRCD comes in after the market closes.
There is more and more talk that the FED may cut the interest rate by 1/2 point this month.
Sonny
PS. Sheesh. I edited something and the post is on twice now. I tried to take the second post off but no luck. I used to be able to do this. Anyone knows how to take a post off while it can still be edited? |
