When I think breakfast, I think eggs, bacon, coffee loaded with cream and sugar, toast slathered with butter and jelly ... hey, can you wait a sec while I get my wheelbarrow of cash to pay for that scrumptious spread?
Just kidding -- inflation isn't that bad. However, the alarming increase in the prices of necessities such as food and gasoline is absolutely real. (Whoa, rice rationing? I'll bet Kellogg's pals Snap, Crackle, and Pop have never felt so loved.) There's plenty of concern that worsening inflation is on the menu for breakfast, lunch, and dinner.
That's why the Federal Reserve's move this afternoon warrants particular attention. Many economists seem to believe that Ben Bernanke will deliver another quarter-point rate cut, with hints that the Fed will pause after that. The dollar's been showing signs of strength on such expectations, which is good -- it's been as weak as a newborn kitten.
Whether you've got Bernanke's back or you think Bernanke should just stop with the rate cuts already -- or maybe you're in the camp that believes we've had a whole flippin' village of idiots to contend with, with plenty of blame to go around -- let's just hope Bernanke doesn't make us lose our lunch.
News to go
Tax rebates: a temporary fix for some, a boon for others, and a source of arguments overall about whether they're a significant potential boost to the ailing economy. If you're slated to get one, and you're still deciding whether to shop till you drop or save for a rainy day, here are some Foolish ideas on what to do with your rebate. For example, if you must spend, companies such as Kroger
In an increasingly frequent move for banks (and an increasingly dilutive one for shareholders), Citigroup
Love and credit may not mix, but apparently, some people still love their credit cards, judging by MasterCard's
Today's slate of news also includes General Motors'
However, I've noticed that the scandal seems to have given a lot of people something to rant about other than high food and gas prices, plunging house values, and rocketing foreclosures.
Thanks for joining me for breakfast! Have a great and Foolish day!
More warmups for today's Fed announcement: