Oil prices are back on the rise;stocks take another dive

Washington Post,June 12, 2008 on page D5:

The FED's readings on the US economy indicated that Americans were straining under rising energy and food costs.

Investors are worried that the spike in oil prices will dent consumer spending. i.e. consumption sector is about 2/3 of GDP to be dampened.

Such happenings pose both an inflationary risk and a threat to growth i.e. stagflation as I put in my books entitled "Keys for Economic Understanding" (1971) and "Keys to Economic Understanding." (1976) Both works are listed at www.ask.com for reference.

Francis Shieh a.k.a. Xie Shihao on Thursday,June 12th and 12.04 p.m.