Inflation Expectations Pulling Up Anchor and Sailing Away
One of the FED's favorite statements to make is the good old "inflation expectations remain well anchored". I have always hated that statement because it is clear that actual inflation makes zero difference to the FED, only the expectation of more of it scares them. Well Boom Boom Bernanke and company should start wearing their depends undergarments after the scare stories being run on all the major TV networks and throughout the mainstream media concerning gasoline and oil prices.
One segment talked to some "experts" about how bad things could get. One crazy guy was saying oil at $200 a barrel will mean $6-$7 dollar a gallon gasoline. I am not quibbling with the numbers, perhaps that is correct. The key here is that expectations of higher prices are starting to become ingrained, and they are starting to run a little out of control. If the FED has failed at basically every aspect of their job (they have) at least they could have done this one thing right!
I have no idea how high oil/gas can go. The move from reporting that things are ok and getting better is giving way to panic reports at an alarming rate. Going to be a long summer.
The Week After the Worst Was Behind Us
It was only just last week that the final touches on the whole "the worst is behind us" thought line were finished that the markets took another beating. Maybe the worst will be over next week? Here is this weeks DOW chart which clearly shows the end of the problems facing the markets:
If this happens after the worst is over, I am scared to see what happens if things get worse!
The housing numbers today were abysmal as usual and existing home inventory is at an all time high. HELOC's are going south faster than any models can predict. JP Morgan defrauded Jefferson County Alabama. Moody's was caught in a cover up. Yup, I'd say next week is a better bet for the worst being over. Until the next week after that.....
With Housing's Bust, How Will People Exhibit Their "Success"
Really owning one's own home used to mean so many things. It used to mean the buyers were able to put away 20% of the purchase price. It used to mean a bank went over the buyers finances with a microscope. It used to mean the buyer was committed to becoming a part of the neighborhood. It used to mean the buyers were in great financial shape. I think you know none of this applies anymore.
Expanded into the bubblemania, things like granite covering every surface was the exhibit of "wealth" and "success". Travertine tiles were also a big showoff item. Huge SUV's the size of small cities were a clear sign of a big penis, er wallet. You know the things I mean.
So what will replace these former wealth markers? How about T-Shirts with your actual net worth printed on them after being certified by a independent firm? No, that would not work as there is no way to lie. Will piling cans of gasoline in your front yard become the new status symbol? Maybe. Some guy will cheat and fill them with water though.
So what is it going to be? If a home may mean some sign of success, but it could also mean a subprime slime on your block, what will be the new showoff item(s)? Here are some ideas, but please leave some more in the comments section. I will put a bunch of the best ones up on Sunday for the new poll question.
New Status Symbols To Replace a Big Home
- Huge outdoor grills made out of Granite powered by their own barrel of Oil
- Car up on blocks left running for hours to show gas prices don't hurt this family
- An all American citizen landscaping crew, no illegal immigrants
- Travertine tile driveways
Make up your own!
It is indeed Friday night, and that means it is time for laughs, films, music, and whatever else I can think up.
Comic Relief
more cat pictures
Film Recommendation
If you have not seen the film "No Country for Old Men" then you have to. Soon. A new era classic that will be a timeless hit. In a scene that will become as remembered as any other classic, take a look at "The Coin Toss":
Music Time
Loyal reader Watchtower recommended The Smashing Pumpkins and the song "1979", which I confess I know the song well but had no idea the title was 1979!:
A little older tune, listen to Norman Greenbaum's "Spirit in the Sky":
One of my favorite Guns and Roses songs is "The Garden" and I thought in honor of Kevin's and my own garden I would play it, take a listen:
Have a good night.
