Are Investors Waking Up?

When will the second shoe drop? The 214-point nosedive in the Dow yesterday was again blamed on the impact of high oil prices, and signals what will happen whenever it finally sinks in that this problem is not going away and will wreak unfathomable havoc on the U.S. and global economy.

The domino effect of the

Investors have suddenly figured out that this will drive up prices everywhere, and will cause the Federal Reserve to have to raise interest rates faster than previously thought in order to tame its inflationary impact.

That, in turn, will mean access to capital will become harder for businesses to retain their expected rates of growth, and the conclusion to draw from that, of course, is that it may suddenly be time to pull out ahead of the resulting downward curve.

Falls Church News-Press