Here are a few of my other 2005 comments on today's hot topics;

INFLATION & INTEREST RATES: "If interest rates do not rise, the dollar will weaken; commodity prices and oil will remain high. If this happens, inflation will continue to be a major problem. Already, consumers are facing massive inflation in the costs of homes, food, energy and healthcare. It doesn稚 take a rocket scientist to figure out that a dollar buys far less today than ever before."

"Consumer spending showed that the inflation rate rose .3% in January, the biggest jump in three years. Of course the government likes to exclude food and energy which is mind boggling. The government doesn稚 need to tell us there is no inflation; you and I feel its effects on a daily basis. Even the home improvement and buildings products giant Masco said there was inflation. Who are we going to believe, our wallets and Masco, or the government?"

"Interest rates are still very low, and I doubt that we will feel any meaningful impact from the Feds rate increases. Look for rates to reach close to 5% before the economy begins to slow. I am expecting 30-year mortgages to go to 7% over the next 12-18 months."

CONSUMERS & THEIR SUV's: "Over the past few years, when big SUV sales were hot, I said that they day will come when used car lots would be flooded with big SUV痴, and consumers would dump their gas guzzlers at any price. I think that day is fast approaching."

"In addition, higher energy prices are creating a sphincter contraction that is causing many consumers to squirm in the seats of their SUV痴. 撤ain at the pump� is making people re-think their choice of vehicles, but now with lower trade in values of SUV痴, many consumers are upside down in their loans. If these consumers attempt to trade in their SUV痴 for smaller, more gas efficient means of transportation, they may actually incur more debt on a new vehicle than they had on their old one."

REAL ESTATE: Real Estate speculation, and the borrowing of equity from home values have been funding the spending habits of many consumers. Make no mistake; the speculation taking place in real estate today is a very serious problem. When prices begin to fall, real estate speculators will begin to run for the exits, or attempt to unload their speculative real estate bets before their properties come up for closing. As Alan Greenspan recently said, 鍍his will not end well�.

"Debt, when used intelligently, is a tool most consumers use as long as they can stay within their means. Unfortunately, keeping up with the Joneses is causing massive speculation in consumer spending habits. The day of reckoning is among us."

I don't want to sound like a broken record, but I still have maintained my stance on all of these issues.