Good Morning Middle America, your King of Simple News is on the air.
U.S.NEWS: The stock markets rallied yesterday after Bronco Ben and the Inflation Five voted to lower the Federal Funds Rate by yet another 75 basis points or ¾ percent.
Life is good again in America and everything turned out fine. I’m sorry if I worried any of you with all my ramblings. Just kidding, my ramblings predicted weeks ago that the Fed would lower rates to 2% before they were done. Yesterday’s cut settled in at 2.25%, but will be cut to 2% at the next regular meeting, if not sooner.
This move was predictable as the Fed and the federal government pitches in to try and provide the best possible way for you to incur more debt. After all, America runs on debt. But first, they have to increase the value of your assets through inflation in order for you to gain equity to borrow against. Sounds like a reasonable plan to me.
Of course, there are casualties in economic wars. All of those folks who worked at Bear Stearns, who had say $200,000 in their retirement account last week, now have around $2300.00. About 30% of the stock in Bear Stearns was held by those who worked there.
The other heavy casualties are sustained by the elderly who have no ability to raise their income, yet inflation will drive their costs through the roof.
But, tough luck for the elderly they should have planned for 100% inflation and the kids can pay the bills; after all, that’s what we raised them for.
The bailouts of those poor CEOs on Wall who were scraping by on a few million per year is the main concern here. Always has been, always will be as long as the people will hold still for it; and that is forever. Don’t believe me? Revisit you presidential choices for November.