Saturday, September 5, 2009

September 5, 2009

The fall of crude futures prices is normally a good thing for the economy except when it is a signal of the trouble within the economy. Despite inventory decreases and rising demand, prices dropped significantly from mid-week on. The unexpected rise in unemployment to the highest levels in 25 years colored the market moves. Now traders and analysts are talking about price floors of $60 rather than ceilings of $75.

This makes me think of last night's Red Sox vs. White Sox at Comiskey (I'm vacationing at my daughter's in Chicagoland). We need to have decisive action on the economy or at least action like that taken by Red Sox manager Terry Francona as soon as the game was out of reach. He benched (rested) his starters when the score was 12 -1 in the 5th inning. No need to bang your head against the wall. Retreat and get a head start on tomorrow.

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