Inflation Rears Ugly Head Once Again.
“US stocks tumbled on Tuesday, falling from recent highs as investors digested a hotter-than-expected January inflation report that showed prices cooling slower than forecasts anticipated.
All three major indices closed down more than 1% on the heels of the report.
The Dow Jones Industrial Average (^DJI) fell 1.4%, or around 500 points, while the S&P 500 (^GSPC) saw a similar drop, after the benchmark faltered Monday in its bid to keep its historic rally above 5,000 going.”
Inflation hits hard and constant with daily reminders of the way life used to be and therefore is very dangerous for politicians and governments in general. The poor are hit hard and then pain creeps into the middle and upper middle classes as prices continue on an upward trajectory. Harnessing that nasty word is infinitely easier said than done with political futures on the line, many see it is as do or die.
