“I agree with this. I think Fed will cut interest rates, like it or not!! Runaway inflation is too scary but what are we going to do about it? I feel so sorry for the middle class in this country that is literally being raped by this government and it’s fiscal policies!!”

Runaway inflation is scary, but a slow bleed. Stock market falling 200+ points in a single day is seen by the general public as an artery poping. Problem is the government doesnt want to be seen as doing nothing, so they choose the slow bleed that MAY get them reelected. The problems can always be addressed later. The middle class doesnt understand the problem, and doesnt want to. I know, I and all of my friends are middle class (atleast right now). BTW this is the same reason Obama wins, IF he takes NH. People know things arent good, just dont know what to do about it. Since they dont know the problem, it is ok that he doesnt have an answer.

Predictions for 2008,
Stocks are only down alittle overall, maybe 5%. Not because the ecomony is good or anything, but because there is a boatload of cash floating around the world looking for somewhere to go. As a poster on here posted, the lending spigets are on full blast, if your assets are good. This isnt a lending crunch, it is a crappy asset crunch (over-priced housing included). As such, housing falls another 10% and FED rates touch 2.5%. Suddenly housing, while not good, isnt such a bad asset anymore and banks wont be taking in the ass with so many forclosures. Recession is finally recognized, but since that which is pulling us down is patched up, things dont ever get too bad.