Our New Treasury Secretary

Look at this guy. This is the face of the guy who is going to set the world's mind at ease about the stability of the dollar? Does it inspire confidence in you? Not Econo-Girl. The man looks like a lunatic, albeit one that is on steroids. Note to White House: it is possible to be strongly insane.


Reuters photo.

For Sale By Owner

Econo-Girl has seen so many For Sale By Owner signs she is positively dizzy. It's not something she has seen before. But with interest rates causing mortgage payments to rise, perhaps housing is getting a little too dear for some people. For a lot of people, as a matter of fact.

Of course, selling the home yourself means that you aren't shelling out 6% to a realtor. And if you would take a loss if you gave up 6%, you would be selling the place yourself.

The question is: how much downward pressure will this reality put on housing prices?

Sadly Validated

See The Telegraph from the UK:

Markets braced for the worst By Ambrose Evans-Pritchard (Filed: 15/05/2006)

Global markets are bracing for turmoil today after an ominous slide in the US dollar and a slump in equity and bond prices late last week sent tremors through the global financial system, evoking memories of the 1987 crash.

So what's an Econo-Girl to do? What she has been doing for a year: paying off debts that go up with with the interest rates, trying to economize in groceries, etc. She is even considering taking up sewing again. There's nothing like it. I makes you feel like you are a clothing designer.

Oil and the Dollar

The dollar is the currency used to purchase oil and illegal narcotics around the world. Regarding oil, if Iran decides to sell its oil in a currency other than oil, then there will be less global demand for the dollar to use to buy it.

If there is less demand for the dollar, then its value will decrease. If the value of the dollar decreases, to the U.S. consumer that means that prices will go up, massive importers like WalMart and Target will have their prices rise. Right now, it possible to get a lot of stuff cheap overseas because the dollar is strong, and sell it here to you for a low prices in terms of the dollar. That will fuel inflation in the U.S.

If the dollar decreases, it also means that U.S. exported goods will be cheaper, so it will help our exports. And suddenly, coming to the U.S. for vacation will be cheaper, so the tourism business will improve.

A falling dollar will have big ramifications for other nations whose currency is pegged to the dollar. Their currencies will fall in value, as well. So it is rather a big threat on Iran's part.

Threats seem to be a Middle East specialty.

Good News ?

Americans are borrowing less? Not at all. They are still borrowing more than last month, or even last year. But the rate of growth of that borrowing is decreasing! Whee! Don't you feel better now?

Meanwhile, there is a great fear of an economic slowdown in the U.S. And Iran is thinking of buying and selling oil in a currency other than the dollar.

View http://news.yahoo.com/s/ap/20060505/ap_on_bi_go_ec_fi/consumer_credit;_ylt=AuogCCMGtgmsa2e3hjnVFA3v5rEF;_ylu=X3oDMTBjMHVqMTQ4BHNlYwN5bnN1YmNhdA for the article.

Where's the Optimism?

Economists want to know: where U.S. consumer optimism? Job growth is going well, corporate profits are going up, what's the problem?

How disconnected are these goons, anyway? Would it be the rising cost of the same old debt because of the rising interest rates? Like credit cards and interest-only mortgages? Guess how many people that affects? Rising gas prices is only one part of it. So is the forboding knowlege that all this deficit spending is going to have to be paid by US, the U.S. taxpayer.

Bums.