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Wholesale inflation shot up in 2007 by the largest amount in 26 years even though falling gasoline costs allowed price pressures to moderate in December.
The Labor Department reported that wholesale inflation was up 6.3 percent for all of 2007, reflecting a huge increase for the year in various types of energy costs ranging from gasoline to home heating oil.
The economy skidded to a virtual standstill in the final three months of last year, raising fears the country could fall into recession..
...unable to withstand the multiple blows from a prolonged downturn in housing, a severe credit crisis and soaring energy costs.
Already, unemployment is rising. The jobless rate jumped to 5 percent in December, up from 4.7 percent in November. That was the biggest one-month surge in unemployment since October 2001 in the wake of the 2001 terrorist attacks.
my sentiments exactly
Originally posted by gottago
2007 Highest Inflation Rate in 26 Years
Overheard in the White House: "Would you like another war with that, sir?"
Former Federal Reserve Chairman Alan Greenspan, whom some blame for fueling a housing bubble, is signing on as an adviser to hedge-fund firm Paulson & Co., which has profited handsomely from the collapse of that bubble.
Originally posted by Karlhungis
"even though falling gasoline costs allowed price pressures to moderate in December"
Falling gasoline prices? Maybe for a few days, but I still see gas at record levels. Oil is still trading in the 90's. I fail to see how you could classify either of those two situations as "falling gasoline costs".
It is insane what our economy is looking like. How many days before these recession reports came out was it that Bush went on record telling us that our economy was strong and stable? The stock market is tanking, people are foreclosing in record numbers, food is going up, gas is going up, and the middle class is being destroyed.
I try not to read these threads because they depress the crap out of me.
Originally posted by gottago
reply to post by Vojvoda
Very true; the Fed, the gov't and Wall Street decided in the 80s to short-circuit the normal business cycle and bubble their way to "prosperity" for an entire generation. Well there aren't any more bubbles left to inflate to keep this game going and the inevitable reckoning is at hand. They will doubtless save themselves, as they've always done in these situations--those "liquidity infusions"--but it will be the taxpayer and consumer who pays.
Originally posted by Vojvoda
And new FED Chairman, Bernanke is just idiot who thinks that with 'infinite' liquidity infusion recession can be prolonged forever, but the price of that idiocy is high inflation. Now it's too late as any increase of interest rates will cause 1929, so they decided to weaken more and more $, and result is inflation. Process is out of control now.