What we have here so far is not exactly inflation but rather big increases in the price of fuel. This effects the whole economy, and the most immediately vulnerable area is food production, which now requires huge amounts of fossil fuels. So of course the price of food goes up almost immediately.
In the short term I don't think anybody can predict what will happen to crude oil prices. In the medium to long term, it's inevitable that those prices will continue to rise.
-- Ralph D.
That leads to our question of the day. Are you spending differently because you're paying more for food and gas?
----------------------------
For everyone who's crying about the moral hazards of a government bailout of the mortgage crisis, I have just 3 words for you. "House of cards"
The banks are so afraid that they won't lend to one another. They have Zero faith in Government secured loans. When these financial institutions finally stop underwriting to Fannie and Freddie overall standards, which in my opinion is only months away, borrowers are about to be faced with the a new set of underwriting standards in this country, that are based on complete fear. If the banks don't trust the ability of the federal government to pay secured loans backed by federal agencies like Fannie Mae and Freddie, what's next but complete chaos and collapse in our banking system?
I think it's too late anyway. I think the Fed should have moved before we got to this point in August of last year. But, for now, a complete bailout of the mortgage markets in some shape or form is the only thing that can save us from the next great depression.
- Charles P. from Illinois
______________________________________________________
Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep your comments private? Send those questions and comments to fastmoney@cnbc.com.
