Finally, it seems, real markets in a panic are beginning to notice that artificial interest rate "targets" are too low to compensate for risks and inflation.
Imagine how much better off we (you) would be if Fed funds had been at 5% for all of the last seven years, your CDs had been paying 6%, your stock market was "reasonably" priced (instead of convoluting in bubbles of sector rotation) and mortgages had never been under 8%. Your dollar would not have inflated, as it did.
Kirk Shinkle is a senior editor at U.S. News. He writes daily about ups and downs in equity markets, sectors and stocks. Formerly, he covered business and economics on both coasts for Investor's Business Daily.
of @ Sep 18, 2008 12:33:13 PM
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