Who knows what will happen next, check out what Lou Barnes has to say, I am sure $95.00 oil will have its effects.
In as strange a stew of news as you'll ever see, mortgage rates have risen close to 6.25 percent, led by the 10-year T-note's leap from 3.85 percent to 4.25 percent.
Beginning two weeks ago, the financial markets began to trade on the prospects for government bailout of a fibrillating financial system. Then, yesterday, new economic data whiplashed them from preoccupation with financial failure to worry about inflation.
Last first. The data surprises: reasonably healthy retail sales for November; a full stop to the rise in new claims for unemployment insurance (i.e., no increase in layoffs); a modest 0.3 percent gain for industrial production; and awful inflation numbers. November CPI jumped 0.8 percent -- 4.3 percent year-over-year -- and the all-important "core" rate rose 0.3 percent, way out of the Fed's 2 percent annual range. $95 oil will have is effects.
"Trade on prospects for government bailouts ..." Wahazzat?!