Tuesday, September 20, 2005

FED Raised Rates Again

Yup they pulled the trigger. I guess they think that the Hurricaine's impact will not be felt for too much longer. I hope they know that gas prices are starting to crimp peoples buying habits out there. The gas cap here is making people delay purchases hoping that prices will go down. They also seem to be buying less cars as well. If that is happening in the rest of the nation then that can't be very good for the economy.

Maybe that is the FEDs gambit. They are thinking that much of the high prices are because of speculation and should drop before too long. So they are just moving along at their measured pace hoping gas prices don't hurt the consumer too much. It seems that any threat to supply however tenous is driving prices strait up. That seems like bubble behavior to me.

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