I know alot of you "trade what you see" and that is a good short term way of being a successful scalper/daytrader. Set aside your trading bias or lack thereof, and think about your macro economic view at this time.
That is Fed Governor William Poole a.k.a. Poole the Tool
example of his brilliance-
"rates may have to go lower before rising" coupled with "current situation is not a crisis"
Well, Tool, if it isn't a crisis then why do we need to continue to lower rates?
and....
"recession fears...
Cannot inflate when the Real average weekly earnings were DOWN -.5%! Gotta love the death spiral, inflation not abating as promised, but wages are falling.
Hmmm.... prices going up and income coming down........what to do, what to do.
Well, thank Bush for the tax rebates, or rather OPEC should be thanking him as all that money was just spent on energy.
RBOB> +a dime, same a heating oil, crude up $4.50, natty up .32.
What would the ARABS have done without good ole' George.
The problem with change is that the system is not designed for a big shift. Look at our choices for president, all are very poor and really have no clue about what is needed to do. Ron Paul has the best head economically, but without like mindedness in congress, he can't personally do jack...
The problem with that chart is the demand side, the price will rise enough to kill off the portion of demand required to stay at par as you cannot have more demand than supply as the chart illustrates. So eventually the S&D will need to converge and the price run will be what causes that to happen.
I'm telling you, if just a small portion of the country withdrew cash from the banks, that would create the death spiral.
Fuck the FED, don't fight capitalism 2.0