Chinese Takeout
So the Chinese decided to raise interest rates today, and all of my stops are being hit. Ugh! I remember Marty Zweig saying, "Don't fight the Fed," but I don't recall him ever saying anything about the BOC.
And on top of that Bernanke is yapping on about moderation in the US economy, with the glowing exception of energy, which poses an inflation risk in his eyes.
This isn't '87, when our brilliant Treasury Secy was trash-talking the Dollar, but it isn't exactly confidence inspiring either.
It certainly means US interest rates are going higher still.
If you want to put a little money on this (I really do mean a little), wander on over to the Iowa Electronic Markets at the University of Iowa. You can also gamble ... er, I mean "invest" in the outcomes of this year's US elections, most likely starting again sometime later this year.
And on top of that Bernanke is yapping on about moderation in the US economy, with the glowing exception of energy, which poses an inflation risk in his eyes.
This isn't '87, when our brilliant Treasury Secy was trash-talking the Dollar, but it isn't exactly confidence inspiring either.
It certainly means US interest rates are going higher still.
If you want to put a little money on this (I really do mean a little), wander on over to the Iowa Electronic Markets at the University of Iowa. You can also gamble ... er, I mean "invest" in the outcomes of this year's US elections, most likely starting again sometime later this year.
posted by Mike B at 4/27/2006 03:32:00 PM
2 Comments:
It is interesting that you bring up interest rates and the dollar. The German and I have been discussing this a lot lately. First, it is cheap for us to go the US these days, but my parents are hesitant to come over. Second, we refinanced my student loans in the U.S. I had a variable interest rate and was convinced that Greenspan was out to get me. We took out a big loan in Germany (the total amount being smaller AND getting a better, fixed interest rate), transfered the money to the U.S. and paid off all my debts.
I remember the days of cheap beer and conversations about Friends. Now it is a glass of wine and debates about interest rates. Sigh. All of a sudden I feel old.
Claire: It's when you can explain escrow to people that you should really worry!
All: I may have spoken too soon about the IEM ... they aren't running the market for Interest Rate Policy this month. Hmmm. I still have a couple hundred dollars with them, so I better see where my money is.
By the way, the IEM started as the Iowa Political Stock Market, was designed to test the theory that a group of people "voting" the candidates by trading shares backed with real money might be a useful predictor of the actual outcome of elections, and has successfully predicted outcomes of several of the past elections.
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