Rate hike on the 28th/29th?

Discussion in 'Economics' started by michaelscott, Jun 19, 2007.

  1. Wow! Inflation is everywhere but somehow no one on CNBC or in the world of trading seems to care.

    Here are a list of things that I have seen lately that have been interesting:

    - Bag of combos and a monster at a gas station -$4.53
    - Slice of pizza at a dirty restaurant in the Bronx- $3.50
    - Burger King meal at a random place in a suburb- $7.50
    - 4 drinks, 1 Cheasesteak, 1 pasta meal in Hoboken- $50.00
    - A large cup of coffee at the gas station- $1.50
    - A large cup of coffee at the Dunkin Donuts- $2.50
    - Gallon of milk at the store- $6+
    - A small meal at a cheap Thai restaurant in NYC- $48
    - 2 drinks at 230 5th St, $24

    Lets not mention gas, $3.25 per gallon (Last years price at this time=$2.50) 30% rise alone on gasoline

    Cost of a 25 mile commute with a stop-off at the McDonalds for breakfast= $7-10 (one way trip)

    If Bernanke takes into consideration the *real* inflation, then I see 2-3 rate hikes this year. If he takes into consideration just the core, then I guess its no rate hikes while the above prices tick ever higher.

    So its either raise the rates so the common man can afford his commute and that cup of java at the gas station or hold the rates steady so the rich wall street man can keep bidding things up. Who will get screwed?
  2. the risk of a rate hike based on news alone is high, so the market should sell off as the meeting approaches, then rally if no hike.

    the wording itself should be enough to run some major stops on the downside first.
  3. Q12


    $6 for a gallon of milk! My wife does the grocery shopping but if that's accurate than we might be using water on our cereal. I have a feeling that figure is a bit high.
  4. RL8093


    Wife just told me that it's less than $4/gal around here (NJ - not the cheapest place in country...).

    Right now - the chance of rate hike at upcoming meeting is 0%. They would have been much more hawkish-sounding in speeches leading up to meeting if it was even on table. They would not be that disruptive to markets w/o some hints....
  5. It's going to be fine! It's the "new economy"!! Right Michael?
  6. Other then buying milk and gas why buy any of the other shit. Who needs combos and monster or who needs to buy coffee at a store or pizza from a nasty ass pizza pace. Who needs Thai food?

    People complain about inflation but the fact is people just piss there money away on stuff they don't even need.

  7. sprstpd


    What do you eat? Can I complain about that?
  8. Your right, no one really needs any of that stuff, but its nice to be able to buy a little something for yourself without feeling like your getting raked over the coals. Its funny. The pizza at these small places out of the city is so much better then the stuff in the city. The expensive food in NYC is usually bad, made for tourists that will only go back once.

    Yep, it is the new economy. The new economy of inflation and low wages. I told you all to buy Amazon as its a new economy stock.

    At least I can still fly to Bangkok for $784 round-trip from JFK. They havent moved those prices up yet.
  9. OY VEY,

    FOLLOW THE YELLO BRICK ROAD!!!!!!. What do the Fed. Funds Futures tell you about the next FOMC meeting?

    The only time I traded upon the FEDS FUNDS not being right, was the surprise rate cut back in the Last Bull market. It was just around the early afternoon....nobody expected that.

    However, Since then the FED FUTURES have been on target.

    So, Iwill let all you professional ET traders figuer out "What" the FOMC is going to do. I will be flat into the announcement as all ways. I expect a sell off into the FOMC meeting, if not before July 4th.

    However, the next dip % wise will shake a few Longs out...but it will be one of the last buying opportunities before the market Heads for another 1000 point run in the INDU.

    And yes Im a Bear at heart but I think this Bull is only in its first wave, the second one is going to be stronger.

  10. Best burger anywhere at any price Micheal, is at Corner Bistro NYC! I would hope that inflation has not bid it up too much since the last time I was in the city.

    Not sure where you live in the city, but it is in the west village area. Can't recall the streets, but check it out sometime.
    #10     Jun 19, 2007