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

To: gregor_us who wrote (65273)	7/5/2006 12:52:58 PM
From: John Vosilla	Respond to of 110194

'Now, Mr. Sinai thinks inflation likely will begin to feed on itself, as workers and suppliers demand higher wages and input prices and companies pass those cost increases on to consumers. As a result, he expects the Federal Reserve to slam harder on the brakes, increasing its target for short-term interest rates from the current 5.25% to 6.25% by mid-2007, a level that no other economists think likely and that many believe would be high enough to trigger a recession.' Nice well thought out article. Only thing I disagree about is timing of continued moves by the fed. A much better chance they are close to a pause and then hold rates at these levels for a long time perhaps past the 2008 elections. Housing gets decimated and the world economy slides into serious recession if rates move up too much more in the near term. The genie is out of the bag and workers must be paid more in order for them to pay the bills. businesses passing through their skyrocketing costs as best they can. A serious recession helps no one.