Suncor Energy Inc T.SU

Here We Go!!

[Experienced]

As I have posted many times, the US Fed is way behind the curve and more is in store regarding rate increases.  

Today's US inflation numbers seal the deal in terms of at another 75 basis point increase at the next meeting and raises the spectre of a 100 basis pont increases.  As I mentioned in an earlier post, keep track of the deltas between the discount rate and the inflation number.  Right now even with a 75 bais point increase, the dleta between the current inflation rate and the discount rate is 400 points.  In my books that is a big difference.

Even if you use the so-called core inflation rate (which in my mind is a scam), the delta with a rate increase of 75 points is still more 200 points.

All this means is that more pain is on the way and expect declining asset prices.

[mrbb]

SP500, Nasdaq, DJ, crude price all shook that off pretty quick  

[Bigbear7405]

If you look at the reason why they raised interest rates in the past it was all due to scarced resources.  If resources don't balance out inflation does not subside.  People on here are like screaming for oil to go up not reallizing what the effect will be.     All recessions had booms right before it and the reason they increase interest rates because high demand for