The author talks about inflation and how it applies to what's going on today. He also talks about the shorting of Dryships (DRYS) and how he profited from it.

It was yet another tough week for global stock markets, with the Dow Jones & S&P 500 declining 3.78% on the week and the FTSE down 3.37%. With oil rallying $4, renewed trouble in the financial sector, downgrades to monoline insurers and trouble in the Middle East, markets encountered an ugly storm on Friday.

Federal Reserve Vice Chairman Kohn made the most explicit comment that we have heard from a central bank official to date about pausing in June. He said that the “economy, markets should gradually improve” and “monetary policy appears to be appropriately calibrated for now to promote both rising employment and moderating inflation over the medium term.”

Just a little oil news. Doesn't seem to be following any logic here. Expect a turnaround and to see the prices go up.

Oil futures extended their declines Thursday, sliding below $100 a barrel at times as concerns about the economy and demand for oil grew and the dollar strengthened.

Wall Street pundits are saying the Fed should lower interest rates by a full point at its next meeting. I think such a rash decision would be unwise and the Fed should actually think about keeping interest rates the same or lowering interest rates by a more modest amount, 0.50 at the most.

THOUGH SOME INVESTORS LOST their appetite for McCormick & Co., the spice king's growing profits could lure investors back to the table. ( barrons Articale )

An overlooked benefit of The Federal Reserve Board cutting interest rates by 75 basis points last week and an expected additional 50 points is the palatable benefit it has and will have for private equity investments.

Ben Bernanke, Chairman of the US Federal Reserve, was facing mounting criticism last night of his handling of the crisis in world markets, raising concerns that he has lost the confidence of Wall Street before the Fed’s key meeting on interest rates.

Wall Street is expecting the US Federal Reserve to cut interest rates by another half a percentage point to 3 per cent when it meets tomorrow and on Wednesday, which would push down the cost of borrowing in America by almost a third in just over a week.

The West’s big economies have entered 2008 in a state of high anxiety.

This article lists the predications from Byron Wien, head strategist at Pequot and ex-Morgan Stanley alum, for 2008. The Prince of Wall Street offers some commentary on Wien's predictions. The predications range from interest rates, to commodities, to who will win the 2008 election.