Barker on Why the Market Tanked (35:45)
May 17, 2006—Mike Barker, Investment & Retirement Management discusses the Dow’s 214 point drop yesterday after the release of the consumer price index revealing a 0.6% increase and an increase of 0.3% in the core CPI. Barker talks about why the market seemed to be caught by surprise by the presence of inflation even thought there have been many signs since the Federal Reserve Open Market Committee’s last meeting. He talks about those inflation indicators as well as the announced price increase by DuPont, Dow and other suppliers and Home Depot’s announcement that it would cease furnishing same-store sales numbers. He also reacts to Home Depot’s contention that its sales are not effected by housing sales.