The China Syndrome/Bernanke's Blues
I like a good stock market rally as much as the next investor, but here's another sign that the Fed cut rates too much, too soon.
Inflation in China -- recently at 6.5% per month -- could, and very likely will, spill over onto our shores.
UPDATE: I forgot to say, Whenever a government freezes prices to contain inflation, it only delays the inevitable. And also makes it worse. Today's 6.5% inflation could easily top 10% or more tomorrow. Watch China closely. Watch China's labor market even more closely. It wouldn't take much more than a minor murmur in job creation to cause some sleepless nights in Beijing.
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