Stocks Rally as Oil Prices Drop to a Three-Month Low

Stocks Rally as Oil Prices Drop to a Three-Month Low

www.nytimes.com

Oil prices dropped to a three-month low on Tuesday, fanning optimism that the crisis in commodities has eased and sending stocks higher. Shares received another spurt after the Federal Reserve decision to hold rates steady while easing its concerns about inflation..

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As the Fed keeps interest at the 2% mark, everyone begins to think that there may be some hope about the inflationary process.

Seems like wishful thinking considering employment loss...,

Good luck out there!

www.nytimes.com
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reply to post by Maxmars


I don't know. I think much of the damage has been done. I was reading this morning in the Seattle Times that King County is predicting almost a $90 million budget shortfall for 2009 purely thanks to the income they've lost over the past few months in the form of real estate and sales taxes. The article said this is something which cities, counties, and state governments are just beginning to wake up to... this year has been brutal, but the real effects where the government sector is concerned won't be felt until 2009. The state of Washington also just enacted a new hiring freeze on all state positions thanks to a "as of yet not known" budget shortfall that's going to colapse on top of an already record state deficit.

The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is building with alarming speed.

www.iht.com...

As per the Merrill 'sale' we found out last week that Trillions of Dollars of off balance sheet 'assets' are worth maybe 5 cents on the Dollar. GM and Ford are facing Bankruptcy and coming begging to the Gov't (you and I) and real estate values may fall another 30 percent.

Of course these Banks and the Street will spin right up until they are bailed out by you and I. Unfortunately, you and I are maxed out with a 9.5 Trillion Debt and MCR, MCD, SS for retiring boomers and Wars without End. The only possible outcome is the collapse of the Dollar. This will bring all the Trillions around the world that are held in Reserve, back to us. Hyperinflation is ugly.