Inflation is Moderating...yipee!

Some economic news out today...

Housing Starts Drop 6%, more than economists expected
http://biz.yahoo.com/ap/060919/housing_starts.html?.v=2

Inflation pressures moderate as wholesale prices edge up only 0.1%
http://biz.yahoo.com/ap/060919/economy.html?.v=6

Its now beginning to look like we may see a interest rate cut before we see another rate increase. The remaining concern is the lack of equity in people's homes, upside down mortgages, and the big debts they racked up. Hopefully, the hope that incomes will rise to help people pay the interest and they will tighten their belt accordingly, look for discretionary retail spending to take a hit. People will buy the things they absolutely need, not just the things they want. Either way, a wave of defaults is still on the horizon.