Thursday, October 20, 2005

Excessive Spending - No, That's Bad News, Too

Oil prices went up and that led to accelerated inflation... you know, things cost more. That's bad news.

Well, now oil prices have dropped a little so oil companies won't earn as much money from you and me. No, that's bad news because the stock market likes higher earnings and is reacting negatively so your investments are tanking (no pun?).

Of course, that means gas prices and other prices should come down because oil prices are coming down. No, that's bad news because oil prices went up before and the Federal Reserve is looking at that as it ponders raising interest rates even higher which will offset any cost reductions from lower oil prices.

That doesn't make sense! Yes, that's also bad news.