Comments on Fund My Mutual Fund: Import Prices Now Breach 20% Year over Year

I think you are right on that latter point but tha...

2008-07-12T15:41:00.000-04:00

I think you are right on that latter point but that :feeling" is stoked by a certain party - all your problems are not due to our incompetence, it's those darn foreigners.

As for American anger - I don't know what it is here. People take to the streets in "1st world" European countries, but here we just sit and take it. I can only assume (many) people do not really know what is going on, hence many don't even know what to rail against or protest or get into their Congressmen's ear about. Only simple things like "high gas" catch their attention. There should be daily strikes on the lawn on the Federal Reserve but that is way too complicated.

TM,But this is only a "mental recession" I thought...

2008-07-11T23:16:00.000-04:00

TM,

But this is only a "mental recession" I thought. LOL That is the latest idea flying around though, I believe it was McCain's economic adviser who said that. Of course the people who say that are part of the upper 2% of americans you often refer to so, for them its mental because they can only imagine economic hardship, because they don't feel it.

"I believe anger will reach the masses this winter."

the question is how violent can disgruntled Americans get. I wonder. they may direct their anger towards foreigners rather than our administration unfortunately.

skd, right on. Same with retail stocks - a year f...

2008-07-11T11:45:00.000-04:00

skd, right on. Same with retail stocks - a year from now they will say "hey it's ONLY falling 8% year over year, last year at this time it was 9.8% - huge improvement"

guy, Americans will be forced into saving. They won't want to. Only wartime ever where tax cuts are pushed through. Politicians still seem totally oblivious from listening to them. It will take shock and awe situations to wake them up, so maybe this is a necessary evil for them to wake up.

What kills me is the Fed rooting for no wage inflation. So the best way to cure this economy is for the workers to get destroyed under the weight of higher prices and inability to pay for things.

Guy, I believe anger will reach the masses this winter. I truly believe people have no idea how bad the home heating situation will be. People will be deciding between food and heat. I think people think I am exaggerating. You can cut back from driving. Can you cut back from heating your home when its 15 degrees? We're going to find out this winter. And not just for the "poor people".

Dont worry, in 5 months the "comps" will be more f...

2008-07-11T10:53:00.000-04:00

Dont worry, in 5 months the "comps" will be more favorable and the y-o-y increases won't look as bad...maybe thats what the Fed means when they say inflation will "moderate" by year-end??

There are several trends which you have identified...

2008-07-11T10:47:00.000-04:00

There are several trends which you have identified rather nicely and early and these are 1) importation of inflation 2) the decrease in the US standard of living (see WSJ this a.m.).

I watching the evening news last night and they had a story on there about how US Air is taking in air movies off their flights because the system to run such movies costs a certain $$$ amount (about 10 mil/ year) to run due to extra fuel costs. Or the other story how people are car pooling to work now.

The news portrays this as the resilient American consumer. But resilient will turn into angry sooner than later. No one yet talking what medicine we might need in this country to get out of this mess; still everything will be ok as American's are resilient.

I have always contended -since 9/11- that sacrifice was going to be required to improve the quality of life in this country. Instead all we were asked to do was keeping spending and go the malls. We are now paying for this and I don't see any change on the horizon.