Cast of Characters
"Fat Cat" corporations played by Tigger
"Happy Dog" consumers played by Honey
"The Fed" played by The Fed
The economy is broken. All eyes are on the Fed.
The Fed slashes interest rates. The fat cat continues to watch the Fed as the happy dog begins to show some signs of life.
As business begins to pick up the fat cat is more than happy to offer cheap products to the happy dog and a certain balance is achieved.
Cost pressures begin to mount for the fat cat and are transferred directly to the happy dog in the form of higher prices. The Fed, seeing the struggle, opts to raise interest rates.
Cost pressures continue to climb for the fat cat. Portion sizes are reduced on happy dog's food in hopes she won't notice. Unfortunately, she notices. The Fed raises interest rates further.
As prices continue to spiral higher, so does the happy dog. The Fed panics and continues to raise interest rates to contain the problem.
The happy dog has had enough and begins to lose her brand loyalty. She calmly explains to the fat cat that she will be buying generic food instead. In response, the fat cat rushes off to explain to the shareholders that the unseasonably warm winter has caused the company to miss its numbers. The Fed, upon seeing the cost pressures begin to recede and noting the warmer winter, is satisfied that the economy is once again in balance. Meanwhile, the economy crashes.
The economy is broken. All eyes are on the Fed.
Real Estate Newsletter Articles this Week: Existing-Home Sales Increased to
4.15 million SAAR in November
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At the Calculated Risk Real Estate Newsletter this week:
[image: Existing Home Sales]*Click on graph for larger image.*
• NAR: Existing-Home Sales Increase...
9 hours ago
2 comments:
Cool post, great animals! Thanks.
I'm glad you enjoyed it. I'm clearly biased when I look at the pictures but it was my hope others might find them amusing.
They are both older now. The "kids" sure do grow up fast. ;)
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