Tuesday, March 18, 2008

Stagflation here we come!

Oh, c'mon, another 3/4 percentage point rate cut on top of the Bear Stearns bailout? All of these efforts to forestall the impact of the subprime mortgage crisis seem to be delaying the inevitable and resulting in rising inflation to boot. Should we start panicking yet?

Well, I guess I shouldn't panic. Having a job lined up helps allay my recession fears somewhat, and taking what steps I can to keep my budget in order is a lot more productive than worrying. There isn't a whole lot I can do about rising food prices other than become even more vigilant about stocking up when there are good sales. I'm trying to cut back on driving, and my dad has started carpooling with a co-worker. I've been slipping up a bit on eating out and buying clothes (the dress for the wedding and $20 for three new shirts), but it's time to rein in spending again.

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