Thursday :: Sep 7, 2006

Here Comes The Recession

by pessimist

Every time inflation rears its head, investors panic and presseure the Federal Reserve to do something to protect their value. The only way the Fed can do is is to toss workers out of their jobs amd reduce the 'inflationary push'. That time is again at hand.

Labor Costs Shake a Pillar of Fed Policy
September 7, 2006

[A] new Labor Department report suggested yesterday that the threat of higher inflation had not diminished and that it might take more monetary restraint to hold prices down.

The rise in unit labor costs in the second quarter could add to pressures for businesses to raise prices for consumers.

The new labor cost numbers raise the prospect that the Fed could face both slower growth and higher prices, creating a quandary over whether to risk even further economic weakness to contain inflation.

Indeed, the Fed’s own survey of regional economic activity, known as the beige book, suggested that growth was slowing in many parts of the country even as wage pressures were building.

On the whole, the beige book painted a picture of a slowing economy,
punctuated by less robust consumer spending, a weakening housing market and high energy prices.
Just a few months ago, the Federal Reserve used words like “solid” and “strong” to describe activity it now says is largely “steady” but “slow.”

My how time - and money - fly!

And with that announcement, thousands of workers can now look forward to a little present from the boss - a nice shiny new pink slip! Wrap it up and give it to the kids for Christmas! They'll love it!

It makes you wonder if the Bu$hCo Fed has a clue as to what it's doing - but then, does anything labeled Bu$hCo?

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pessimist :: 3:46 AM :: Comments (46) :: Digg It!