If you're trying to figure out what to make of falling stocks and rising oil prices, you're in good company.
The Federal Reserve Board is also caught between a rock and a hard place. Last week the Fed cut interest rates 1/4 percent and released $41 billion into the economy to help loosen the credit markets squeezed in the mortgage mess. But the rate cut immediately triggered inflation, sending crude to a record high of $100 per barrel and sending other commodities soaring as well.
Since industry needs oil and raw materials to make consumer goods, that will lead to higher prices for you and me in everything from bread to washing machines. Now, the Fed hates inflation more than just about anything, so it isn't likely to cut interest rates much further. And that realization triggered a 3 percent drop in the Dow Jones Industrial Average.
If the Fed cuts rates further, it could trigger inflation. If it doesn't, stocks could fall more.
So what should we Gather.com members do in the meantime? Hang tight. Follow the adage and "live a whole life." Eat simple foods, live within your means and - even if things get much worse - don't lose your head.
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Comments: 25
Thanks for you help with My Sorry Living Room:)
This, too, will pass.
I don't know how long it will take us to get pdxcurrency up and running. I hope not too long. I am having to live on savings, and it is scary. I'm growing some of my own food in a community garden space I finally got after years on the waiting list. I inherited a wonderful plot with cabbage, green onions and loads of organic rainbow chard.
I also facilitate a health and wellness group in low-income housing. I am taking your piece on the kicker on Tuesday when I go. Taxes are a source of anxiety for some, so it will actually be nice to be able to tell them they may get something back.
I am also helping kids grow fresh vegetables to eat in an after-school program. Some of the surplus after they've munched for an hour goes to the school cafeteria for salad. Boy, does this feel good, to help with this.
Thanks so much to you, Jennifer.