So It Is!

So it is. Bernanke, in typical Fed speak, has mentioned "recession". What does this mean? Not much really. The US economy has been slow for quite sometime. Unemployment has topped 5% and growth has been stagnant for quite sometime. Is the world going to end? No. Most economists figure that the feds will continue to lower rates, some thinking they may keep lowering into 2009. Most all agree that the economy will start to pick up in the 2nd half-3rd quarter of 08'.

What does all this mean for the poor dollar? Lots of volatility, excellent trading opportunities, and an interesting time to watch the buzzards on Wall Street. As I have said numerous times, the buzzards feed of this and induce panic, making a self-fulfilling prophecy. The Bear Stearn mess was the perfect example of this.

Washington, in all their wisdom, thinks that thay can fix this mess. I am not so sure a few more regulations and restrictions will make much difference as I think the problem is much more involved. I think we must look at the american public and the habits we all have.

More to come.....