Link: <a title=”
Fed slashes interest rates
| Reuters

” href=”http://www.reuters.com/article/businessNews/idUSWAT00873720080122?feedType=RSS&feedName=businessNews”&gt;
Fed slashes interest rates
| Reuters


Fed slashing rates significantly. Treasury Secretary Paulson begging for a stimulus package. Asia in a bear market. These are all headlines from today’s papers.

My guess is that we have been in recession for the past quarter and maybe even longer. Usually we do not know until well after the fact that a recession has occurred. With higher gas prices fueling inflation and a distinct deflationary environment in the housing market, we may be in the middle of a perfect storm in terms of the consumer being squeezed on all sides.

Sorry for the doom and gloom. But on the bright side, usually we go through the worst of the pain before we realize how bad it really is. Maybe this is the worst this go around…Don’t read too much into all the doom and gloom pieces that will be all over the media. They have to sensationalize things in order to get readers/viewers which eventually drives ads. The contrarian in me is waiting for Time or Fortune magazine to run a piece that says this is the “end of the world” as we know it. That would be the time to start investing in the market.

If you had invested the day after the correction of 1987, you would have been very happy today. If you had invested the day after the correction of 9/11, you would have been very happy today. Of course, do not take this as investment advice. I stopped that a few years. This is just one casual observer’s opinion.

Now, back to theology!

Published by Todd Nelson

I'm one of the pastors at First United Methodist Church in Lexington, Kentucky where I've served for the past thirteen years. The sub-title of this blog is "Grace is no accident" which happens to be the defining reality of my life. God's grace (gift) is the reason we have breath in our lungs and hope in our hearts.

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