02/26/2007

Because we are paying it off, duh!

Hello:

An article in today's Financial Times expounds astonishment that unemployment is low, and inflation is not high.The author refers to Fed Chairman Ben Bernanke's report last week that estimates "unemployment will be between 4.5 and 4.75 percent this year and next, while inflation will decline from between 2 and 2.25 percent this year to between 1.75 and 2 percent in 2008."

It is pretty obvious to us that the baby boomers, having purchased a large nest and having feathered said nest, are now busily paying off their debts in the hope of building a nest-egg, eventually. Inflation is defined as more money chasing more goods. We believe that the bulk of the population has put a hold on chasing more goods for the near future.

Therefore, we are inclined, at this time, to agree with Chairman Bernanke's report of a high probability of continued low unemployment coupled with low inflation for 2008. And wouldn't that be just fine?

March is just around the corner, and as we move into peak tax filing season, your donors may be more receptive to ideas regarding gifting strategies.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager