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Good News – Things are Getting Worse!

By Brian | July 28, 2006 | Share on Facebook

When Wall Street analysts start focusing on inflation, you wind up with headlines like this:

STOCK PRICES RALLY ON SLOWDOWN IN GDP

The article explains itself nicely: Basically, when the economy grows at a slower rate, there’s less inflation, which means the Federal Reserve doesn’t have to raise interest rates. This keeps corporations’ costs for borrowing money from going up, which suggests higher profits in the future, so the stock market goes up.

Still reads funny, though…

Topics: Money Talk | No Comments »

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