It finally got to me. I have NO time for this, but I just can't stop myself.
The Stock Market- the "financial sector" - is entirely populated with absolute idiots.
And, just for fun; most of them are certifiable gambling addicts, to boot. Self-deluding, in the extreme.
Two stories, running simultaneously in the New York Times, right now; prove this beautifully.
Story 1; "Oil and Food Push Prices Higher".
Gasoline prices rose 5.2 percent in May and were up 21 percent compared with a year ago, according to the report, released by the Labor Department on Friday. On an annual basis, inflation ran at 4.2 percent compared to May 2007. The rise in the index was slightly more than economists had forecast.
Food prices rose again in May as Americans paid 5 percent more for foods and beverages than a year ago.
... Minus the cost of food and gasoline, inflation was 0.2 percent for the month.
Ok, got that?
Story 2; "Stocks Up After Inflation Data." This is the entire story, here; a note;
NEW YORK (AP) -- Wall Street is extending its gains in early trading after a pair of economic reports point to the Federal Reserve keeping interest rates stable when it meets later this month. The Labor Department's report on core inflation, which measures price increases but strips out volatile food and energy costs, met investor expectations.
The Reuters/University of Michigan preliminary reading on consumer sentiment for June has fallen to 56.7 from 59.8 last month. The market had expected the reading would remain unchanged.
Taken together the reports seem to make the case for the Fed to keep rates unchanged, rather than raising them, when it meets June 24-25.
The Dow Jones industrial average is up about 124 at the 12,266 level.
Oh. My. God.
So- the market is ignoring the real inflation rate- by stripping out food and energy. Why? Because they want to, is why. It makes them feel better. And they're ignoring the fact that their pundits thought wrong on consumer "sentiment" (otherwise known as "consumer confidence", a measure of how willing consumers are to believe in the future, and spend money).
Pundits right? Yay! Pundits wrong? Yay!
My jaw is just dropped, right on the floor, at how anyone can claim, with a straight face, that these morons know what they're doing.
The only possible action from a responsible government would be to move in with troops, and lock 100% of the inhabitants of the "financial sector" in a loony bin. Or maybe Guantanamo? They're about to go out of business there, I understand. We could consider it a Federal employment Initiative; keep that facility working.
On the good side: also in the NYT right now: Speculators Become Targets.
Legislators are aware that constituents are angry about speculators driving up food prices (and fuel prices). And they're starting to call, seriously, for action.
Did your emails and calls a couple weeks ago have anything to do with that?
YOU BET THEY DID!!! I guarantee it. It's quite possible that your email was the first one that staffer read, and they kind of blew it off. But then they got another one. And another. Hey, it's a trend. And the talk started- and here is a nice fat article in the NYT- and rising awareness.
Thanks, guys, and congratulations.