Wednesday, September 2, 2009

Yawn. Did Everyone Leave for the Labor Day Party?!?

No response on the FOMC minutes?!? Wow--as of this writing the Dow is up an earth-shattering 5 points. Yes, the minutes state that the FOMC is confident the economy is recovering, but there was also talk about exit strategies, plus drama about inflation.

Now, we at LandColt know that this drama isn't nearly as impactful as what you'll see on Melrose Place, but believe it or not, it does have a ripple effect that will help--or hurt--your finances. It's important to know what's going on.

Well, here's the quote that will probably make headlines during the late night shows on FOX Business and CNBC: "the public did not appear to have reduced its expectations of inflation".


Everyone knows inflation cannot go away--it can only be contained. But, why is this even an issue with the Fed? Are they worried about the output gap?? Come on, guys--we already know you're not going to move in either direction (well, really just one direction now since the Fed can really only tighten at this point). At least not until well into 2010.

My suggestion for the FOMC: Start planning Mr. Bernanke's reappointment party and, oh yeah, develop some solid exit strategies about the toxic waste you guys still have on the books!

Talk to you,

Todd M. Schoenberger, Managing Director
LandColt Trading, Inc.

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