JBL: Here We Are, Now Entertain Us

Ow! What happened to the market? I wrote just recently that inflation would begin to be a problem, but I didn't believe it would start happening this week.

The 1990s were unusual: The economy and the market were roaring, but inflation was tame. I believe one thing that happened in the rate increases of 1997 was that while several nations followed suit, inflation didn't increase because commodities prices didn't follow.

The world is working right now, and many economies are raising rates to prevent overheating of their respective countries. The difference this time is commodities are on a huge bull run, which is stoking inflation.

There is a ton of money on corporate balance sheets; raising rates will not affect these companies. What inflation does to the consumer will affect the economy, and the consumer is being affected right now. ...