Consumer inflation jumped 0.8 percent in July, moving at the fastest pace in over 17 years. I think the free ride of low interest rates is about to come to an end as the Federal Reserve will have no choice but to begin raising rates to stave off high inflation. A move which would almost certainly push the economy into [...]

Retail sales growth last month was a negative 0.1 percent. However, when you exclude auto sales from the number there was still growth of 0.4 percent overall. I’m surprised the spending numbers continue to hold up so well despite a terrible job market and decreased household disposable income. I have cut back significantly in my spending this summer because of [...]

Treasury Secretary Henry Paulson seems to think everyone is saving their stimulus checks for later. In a recent statement the Secretary said that he wants to wait and see how the stimulus package helps the economy in the July-September quarter. I really don’t understand this line of thinking, because everyone I know spent their check within days of receiving it. [...]

The markets were very strong today as the dollar gained strength and caused oil to drop sharply $115 per barrel. Over the last month crude oil has fallen some $30 from a high around $150. Because of the steady drop in crude oil prices, analysts are predicting gasoline prices of around $3.50 per gallon over the labor day holiday. Currently [...]

The Federal Reserve Open Market Commitee has decided to hold the federal funds rate steady at 2%. The Fed is still concerned about core inflation pressures but believes low rates are necessary to nudge the economy out of its current so-called “slowdown.”

Could the recent crude oil price movements be the beginning of a pullback in prices at the pump? I’m not sure how long the decline in crude oil prices will continue, but for now it looks as if Americans are actually reducing our consumption of oil and barring any major increases in consumption by developing nations this slide could continue [...]

National unemployment numbers were released this morning and the monthly increase in unemployment was the largest in 22 years, signaling the economy continues to slip. Crude oil futures also spiked 5% first thing in the morning to about $134/barrel. The trend of oil had been moving downward over the last few trading days, but has quickly reversed amid rumors surrounding [...]

By now, most of the dirty laundry within the banking industry has been aired. The federal government has also signaled its intention to “bail out” or rescue troubled lenders in order to ward of an economic calamity. These factors lead me to believe that the time is right to start slowly accumulating shares of the stronger banks that were the [...]

Five executives representing BP America, Shell Oil, Chevron, Conoco Phillips, and Exxon Mobil were questioned (grilled) by members of the Senate Judiciary Committee. I think the politicians are so off-base on this issue it’s not even funny anymore. But in an election year, the only thing on the minds of politicians (Republicans and Democrats alike) is to appease the wants [...]

In my local area, regular unleaded gasoline rose to $3.69 per gallon yesterday. It is strange that the price we pay for gas in west michigan is always higher than the state and national average, despite having a fuel depot and extensive underground pipelines in my town. While high gasoline prices are a nuisance, I don’t complain about it simply [...]