This article marks the beginning of the end of the economic recovery. The real post-9/11 economic carnage was averted by the Fed's quick reduction of the prime rate, but signs of recovery (and potential inflation) are spurring them to raise rates again. The downside to this action will be the collapse of the real estate market, with housing prices plummeting and taking the stock market with them. The article quotes the third quarter of 2004 as the date when the rate hikes will begin, which would be just in time for the election. This indicates to me that it would put Bush in a bad spot, with the renewed plunge into economic recession on the eve of the vote, but I think the average voter is too stupid. The evidence I submit: The newly changed overtime rules which exempt skilled workers from overtime pay. Where is the outrage? There is none, and I haven't seen a peep of this on the news. It's a lost cause. Bush is going to get elected.
Posted by Barry at April 20, 2004 05:59 PM | Trackback