MSNBC: Stocks tumble as oil prices surge (Dow loses 85 pts)

[stopbush]

Stocks tumble as oil prices surge, Fed eyed
Most see central bank’s policy-setting committee hiking rates again

MSNBC.com
Updated: 5:10 p.m. ET Sept. 19, 2005

NEW YORK - Stocks tumbled Monday, as heightened fears of another hurricane hitting the Gulf Coast region sent oil prices racing past $67 a barrel and investors grew anxious about the outcome of Tuesday’s Federal Reserve meeting. The Dow Jones industrial average finished the day with a loss of 84.31 points, or 0.8 percent

http://www.msnbc.msn.com/id/3683270/

[Zynx]

1. I don't know why Greenspan continues to raise rates without waiting.

Last time he kept charging ahead with interest rate hikes back in 2000 he plunged the economy into recession after keeping money supply too loose for two years.

[DBoon]

2. he wants to make sure wages don't catch up with profits

nt

[skids]

3. Rock and a hard place.

Inflation isn't the only reason for the fed to raise rates. The other reason is to keep our T bills competitive with other countries so that Japan and China don't start calling in our trade deficit.

The fed has no choice, they have to raise rates eventually or America will suddenly find its credit card revoked.

[Zynx]

4. While that is true, US interest rates are higher than Europe's.