TDetroit’s ramblings and nonsense

It’s about time.  

I grew in a carpenter family.  Economics is second nature to people in the residential construction industry.  We are first to get hit.  So getting a BA in Finance and taking all of my business electives in economics only made sense.

We can always tell the direction of the economy by whether we have work.  I am out of the industry, but keep in touch with everyone.  We’ve been slowing down for over a year now.  That’s why we find it amazing that the Fed is just now gettting the hint that they raised rates too many times.  As a college grad, who specialized in the subject, I can tell you, the Fed looks at all the wrong data, and they are too impatient.  

Think about this, it takes at least 3 months for an interest rate hike to have an effect on the economy, yet the Fed makes their decisions every 6 weeks.  Clearly they are not taking time to see what effect the last hike has had before making another decision to raise rates again.  

Also, it would be a good idea for the Fed to consult with the Pres and suggest he use what little discretionary power he has over the economy instead of rate hikes from time to time.  But that never happens.

Anyway, someone is finally getting the message, and the rate will come down this coming week.  Prob too late for the people who are already in foreclosure, but to agreat relief to those on the edge.  This will solidify their ownership, and create future wealth which will translate into a better economy in the near future.

Now if we can only get the message out about American cars.  Fact is, they are better than Japanese cars.  the press will never tell you that.  GM has over 30 models with 30+ MPG, GM is light years ahead of the Toyota and Honda in alternative fuel technology (though the cars, irrespective of maker are just to expensive to make a compelling business arguement, and the numbnuts went ahead and put them on the road anyway - I feel sorry for the idiots who have purchased them), AMeerican plants are much more environementally friendly than foreign plants, and quality of American brands is better (using comeback data instead of survey data - comeback data is whether the car came back to the dealer, survey data is when the owner is asked if the quality is good - duh!, what did you think the answer would be?)

So, buy American, not because you are a patriot, but because it is better!