29Feb/080
Oil Surpasses $103 for First Time
We are in recession and bear market, there is no denying about that. Since the beginning of the year, most of the stocks went down and the economy continues to trend down. With oil and gold at record high prices ($103 and $970 respectively), President Bush and Federal Reserve chief Ben Bernanke still deny that we are not going into recession, but growth is slowing down. They said that they may reduce the federal key rate again.
IMO, a reducing in rates is just a temporary solution, which may create a negative impact in the future. They cut the rate too many times in such a short period of time. However, in the end, it doesn't help the economy.