Bernanke Follow-up

7. June 2007 by Ana Connell.

As you probably noticed Fed Chairman Ben Bernanke’s statements about the current state of affairs sent some shocks in the stock market.  Ben speaks, people, especially investors, listen.

The underlying fear is that the Fed is done lowering interest rates and may in fact be looking towards raising rates.

Things to ponder:

• Rates abroad due to strong economies and currency considerations, may be looking to go up in some countries.

• Housing market slump, per Mr. Bernanke, may not be over and has not penetrated to other parts of the economy yet.
• Possible  job cuts in  the future may play a role and would dampen consumer spending habits.
• Have we seen the worst of the foreclosure mess and how will that impact the economy?
• Will the situation in Iraq and the Middle East present some underestimated challenge?
• Will Putin’s current stance shift us into another Cold War?
• What will happen at the Fed’s next meeting on June 27-28?
• Will the Dodgers make it to the World Series?  (Sorry had to see if you were still with me!)

Bottom line is that we are in for a very interesting summer!

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