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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?


To: STEVE who wrote (57416)4/19/2006 9:37:51 PM
From: the navigator  Respond to of 57584
 
Hi Steve,

What can I say? I really don't know what is going to happen. On the one hand, there are some serious similarities between now and the oil shocks of the '70's. On the other hand, the world has gotten much smaller and (in my opinion) much scarier.

Interest rates climbed to the teens because Fed Chairman Volcker raised them to kill inflation (a highly successful maneuver). I don't believe our economy can handle that kind of medicine this time around. So either a) they'll raise rates to kill inflation, and perhaps send us into deflation/depression? Or b) they'll lie to us about inflation and let it run. Personally, I'm going with b.

And I think we need to begin thinking about $4 gas and how that's going to affect us, it should get the hybrids rolling off the assembly line if nothing else! I'm not predicting anything, just trying to be prepared.

LJ