America is at war. An international threat has been taken down. How do these international crises affect us in the US? How do they affect our pocket books?
On the heel’s of bin Laden’s death we see American morale at an all time high … and the predictable rise of stock futures. But the price of oil continues to soar and impact us both in terms of higher energy costs … and reduced spending power.
The high price of energy continues to inflate the US dollar which means that a dollar today will buy you less than a dollar from ten years ago. Less buying power indicates that inflation is a concern.
Inflation makes both lenders and investors nervous. Hint at the term “inflation” and they either want higher fixed rate loans or low rate adjustable loans with teaser rates. This is going to be an interesting week!
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