June 8th, 2007
This isn’t an angle I had anticipated. Check out this article. Years of global growth raise inflation worries
New Zealand raised their rates yesterday. Many fear more to follow.
Dwight Johnston of Wescorp has a new long-term commentary titled?And Then There Were None. The jest is, first of all, no one believes there will be a rate cut anytime soon. Which could mean there will be. When everyone is in consensus, many times someone comes in with the curve ball.
The other problem is the Fed is probably worried about further fueling the merger/buy-out craziness. Rates are still accomdative and if they lower them, that area will just go like wild fire. The Fed doesn’t want that bubble growing even faster. As a bubble grows (like a balloon), its protective covering becomes thinner and thinner, until, Bang!!! and stuff everywhere. Havoc would really break lose. Anyway, read the commentary and let’s have some discussion.
-- By +Chris Duncan