Never mind the housing market, the lack of consumer confidence, the fact gas is edging back up to three bucks a hit, or that the US Dollar has sunk past the Canadian Dollar (The "Loonie") and is closing in on the Australian Dollar (The "Fosters"). There is irrational exuberance in the air.
Actually, this good feeling is the result of the Federal Reserve giving the stock market a cookie (a rate cut) and that they are therefore looking for another cookie (another rate cut). Mind you, the markets tossed a financial tantrum a couple months ago and threatened to sink the entire operation UNTIL they got a cookie. Yes, I think of the stock market as daycare, but without the adult supervision.
Of course, lowering interest rates funds inflation. But I'm sure that all those consumers and lending institutions that put themselves out on a financial limb with ARMs and bundled mortgages will be MUCH more careful now with their investments from here on (yeah, right).
I Was Wrong (The 1930 Hobbit) - So, as I mentioned in my last post, the newly arrived splendidly illustrated catalogue for the current Bodleian Tolkien exhibit, TOLKIEN: MAKER OF MIDDLE E...
3 days ago