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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (17630)	8/12/2004 11:17:05 AM
From: Silver Super Bull	Respond to of 110194

Mish, RE: "Rising oil is spooking the market and taking a toll on the economy already." Yes, there is little doubt that rising oil prices have a negative effect on the economy. However, if indeed rising oil prices are a manifestation of increasing inflation, the Fed would presumably want to raise interest rates sooner rather than later, in order to not let inflation get out of hand as it did in the '70s. I'm not arguing that increasing interest rates in response to rising oil prices is the right thing to do - or that inflation is subdued right now. I'm just explaining the mindset. DB