TheFED AGREES WITH ME, ECONOMY THREATENED

Not too long ago, I posted on how, in my view, the economy is tanking. I cited brick and mortar chains closing up shop and megacorps like Toys R Us selling off their main businesses because they were losing money. Well, now it looks like the Fed is agreeing with ThePete. Check out this cutting from [http://money.cnn.com/2007/03/28/news/economy/bernanke.reut/index.htm?postversion=2007032811|a March 28, 2007 article] from Reuters.com available at CNN.com:

Federal Reserve Chairman Ben Bernanke said Wednesday uncertainties surrounding the outlook for the economy had risen recently, and that future interest-rate decisions by the central bank would depend on how the economy evolves.

.... Bernanke said that while inflation, outside of volatile food and energy prices, seems likely to moderate gradually over time, the risks to that forecast were to the upside. But he also expressed concern about the slowdown in the U.S. housing market, which he said had been the principal source of a slowdown in economic growth that began last spring.

OK, so that's not exactly an agreement since he's not looking at things from the ground, up. Still he's seeing what I think is a trickle-up effect, where people are start spending less on little things and eventually spend less on more and more expensive things until they stop buying houses.

I'm no expert, just using my brain and what I see. Things look bad to me. I'd invest in gold if I had the money to.

Just sayin'!

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