Wednesday, February 27, 2008
When the Euro soars
Poor old Cinderdollar is not just cleaning the toilets, but out back dipping the chunks out of the septic tank, too.The news stories in the NY Times have taken a more elegant form in their language.
The euro climbed to a record high of $1.5057 in early European trading on Wednesday as sentiment increased that the U.S. Federal Reserve would continue its rate cut campaign.And the honey dipping part is right here.
Gasoline prices, which for months lagged behind the big run-up in the price of oil, are suddenly rising quickly, with some experts saying they could approach $4 a gallon by spring. Diesel is hitting new records daily, and oil settled at a record high of $100.88 a barrel on Tuesday.Another brick for Li'l Georgie's legacy.
The increases could not come at a worse time for the economy. With growth slowing, energy increases that were once easily absorbed by consumers are now more likely to act as a drag on household budgets, leaving people with less money to spend elsewhere. These costs could worsen the nation’s economic woes, piling a fresh energy shock on top of the turmoil in credit and housing.
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