Don't be fooled by our current market conditions be encouraged by it, stocks and other investments are real cheap right now. Now is the time to buy! Our real problem isn't the stock market its our own government, a Heritage Foundation article reads:
The Risk of Building Inflation Pressures
In the months ahead, the Fed has a second task before it in constraining building inflationary pressures. This task may prove at least as difficult as navigating the present turmoil; once again, recession hangs in the balance. Many of the actions by the Fed and other central banks across the globe involved transactions in which financial assets held by a bank or other firm were exchanged for a cash loan over a specified period. These transactions provide liquidity precisely where it is needed and to whom it is needed. They also have the advantage of automatically withdrawing liquidity again upon expiration.
In contrast, the Fed has also aggressively reduced the Federal Funds rate. This likely has helped financial markets in a general way, and likely gave a dollop of extra energy to the rest of the economy. But the low Funds rate has also created a serious risk of rapidly rising inflation and inflationary expectations. Before long, the world's central banks will need to act aggressively, and sooner than they would otherwise choose, to drain this excess liquidity with some urgency. This will be a very dicey business, because if the central banks, and especially the Fed, act too slowly, then higher inflation will take hold; but if they act too aggressively, they will trigger a classic recession sometime in 2009.
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