The Franklin Chronicle


A LOCALLY OWNED NEWSPAPER


December 21, 2007 Page 7


Peter Crowell Presents

Weekly economic update for the
week of December 17, 2007


Quote of the week
 "Success.isn't permanent, and failure isn't fatal." -Mike Ditka
 Inflation up 3.2%, retail sales up 1.2%.
 Some head-turning news from the Labor Department: in
 November, wholesale prices rose by the largest month-over-month
 amount since 1973, spurred by a 34.8%
 jump in gasoline prices. The Consumer
 Price Index (CPI) was up 0.8% for the
 month, exceeding the 0.6% rise econo-
 mists had forecast. 1 Inflation is now ris-
 ing at an annual rate of 4.2% for 2007,
 far above the 2.6% inflation of 2006 and
 well above the target of the Federal
 Reserve.2 And now, the good news: the
 Commerce Department reported retail
 Usales up 1.2% for November, the biggest
 Advance since May.
 Sponsored by Pete Dollar has best week since June 2006
 Crowell, CFP
 The biggest month-over-month CPI
 increase in two years certainly strength-
 ened the dollar. Last week, it gained nearly 1.5% against the euro and
 1.6% versus the yen.
 Greenspan: risk of recession rising
 On National Public Radio last week, former Fed chairman Alan
 Greenspan was again asked about the odds of a recession. "It's too
 soon to say, but the odds are clearly rising," he remarked, adding that
 "we are getting close to stall speed." Indeed, economists widely
 expect GDP of 1.5% or lower in the fourth quarter.
 Mortgage rates above 6% again
 Rates on 30-year FRMs averaged 6.11% last week, up from
 5.96%. Other rates also went north: 15-year FRMs averaged 5.78%,
 up from 5.65%; averages on 5-year ARMs went to 5.89% from 5.75%;
 and average rates on 1-year ARMs hit 5.50%, up from 5.46%.
 A rate cut, but a bad week
 The Fed cut the federal funds rate to 4.25% and the discount rate
 to 4.75% on Tuesday, but investors wanted-a deeper cut, and rising
 inflation dismayed Wall Street. The major indexes had their worst
 week since early November.
 % Change 1-Week 4-Week Y-T-D
 DJIA -2.14 +1.22 +7.03
 NASDAQ -2.67 -0.08 +9.13
 S&P 500 -2.50 +0.63 +3.50
 (Source: CNNMoney.com, USAToday.com, 12/14/07)
 Riddle of the week
 The Department of Homeland Security advises all homes to have
 it. NASA includes it on every mission. It is waterproof, heat resistant
 and strong, and it bonds well. What is it? Read next week's update for the
 answer.
 Last week's riddle
 How can you hold onto both ends of a rope and tie a knot in the
rope without letting go of either end? Answer: Cross your arms before
grabbing onto each end of the rope. When you uncross your arms, there will
be a knot in the rope.
Peter Crowell is a Certified Financial Planner in Tallahassee and a property
owner in Franklin County. Mail your question to PO. Box 590, Eastpoint,
FL 32328, or e-mail to info@franklinchronicle.net.
The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-
chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index
of all over-the-counter common stocks traded on the National Association of
Securities Dealers Automated Quotation System. The Standard & Poor's 500 (S&P
500) is an unmanaged group of securities considered to be representative of the stock
market in general. It is not possible to invest directly in an index. NYSE Group, Inc.
(NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the
"NYSE") and NYSE Arca (formerly known as the Archipelago Exchange, or
ArcaEx, and the Pacific Exchange). NYSE Group is a leading provider of securities
listing, trading and market data products and services. The New York Mercantile
Exchange, Inc. (NYMEX) is the world's largest physical commodity futures exchange
and the preeminent trading forum for energy and precious metals, with trading con-
lducted through two divisions-the NYMEX Division, home to the energy, platinum,
and palladium markets, and the COMEX Division, on which all other metals trade.
These views are those of Peter Montoya Inc., and not the presenting Representative or
the Representative's Broker/Dealer, and should not be construed as investment advice.
All information is believed to be from reliable sources; however we make no represen-
tation as to its completeness or accuracy. All economic and performance is historical
and not indicative of future results. The market indices discussed are unmanaged.
Investors cannot invest in unmanaged indices. Please consult your Financial Advisor
for further information. Additional risks are associated with international investing,
such as currency fluctuations, political and economic instability and differences in
accounting standards.

This Week's Answer

Cogno's Corner
Answer to question #194 is: True.
 Even though air is invisible to our eyes, it is made of mol-
ecules that have weight. At sea level; at room temperature (like
the inside of your home) the air could weigh more than one
kilogram per cubic meter! Imagine a big living room 5 meters
long, 5 meters wide, and 3 meters tall. That room contains 75
cubic meters. So the air weighs 75 kilograms, or 165 pounds!


ACROSS
 1. Stooge after
 Curly
 6. Baseball card fig.
 10. Cut into boards
 14. Raring to go
 15. Xenia's state
 16. Irish Rose lover
 17. Business
 magazine's
 language?
 20. Break a
 Commandment
 21. Lana of Smallville
 22. Soda bottle size
 23. Punch-in time for
 many
 24. Spinach is rich in
 it
 26. Former airline's
 language?
 32. Cuts and pastes
 33. Ready to serve
 34. Locomotive part
 36. Palo
 37. Shelled out
 39. Vena (main
 vein)
 40. Title for
 McCartney
 41. Miracle Mets
 stadium
 42. Paparazzo's
 quarry
 43. Dramedy show's
 language?
 47. Crier's employer
 48. Gen-_
 (boomers' kids)
 49. Lamb Chop
 manipulator
 Lewis
 52. Retin-A treats it
 53. Orienteering need
 56. Apple ]['s
 language?
 60. Is in the red
 61. The enemy
 62. Take back
 63. Monopoly stack
 64. Links heads-up


Watch Your Language!


American Profile Hometown Content

65. Fare behind a
 sneezeguard

DOWN
 1. Stage
 constructions
 2. Mata
 3. Narc Eddie
 (Popeye) _
 4. Rx item
 5. Tourney starters
 6. Oklahoma athlete
 7. Tough guy
 8. Make public
 9. Scale unit
 10. Like seawater
 1.1. Help in a heist
 12. Chips brand
 13. Not e'en once
 18. Dick's primer
 mate
 19. Admiral Byrd
 book


23. Defense alliance
 since 1949
24. Trash can, on a
 FC
25. Go into hysterics
26. Carrots' partners
27. Wing it on stage
28. Explosive stuff
29. Thing to aim for
30. Locker room item
31. Mansard edges
35. Bunyan's ox
37. Take third place
38. An Ivy, briefly
39. Toon collectibles
41. Zeno, notably
42. Law, medicine,.
 etc.
44. Burnout cause
45. It may be lame
46. Mannerly sort


59
- -- --



 071216

 49. Attempted to
 score
 50. Hockey legend
 Gordie
 51. Congregation's
 assent
 52. Monkey-see-
 monkey-do sort
 53. Whimper like a
 baby
 54. Israel is in it
 55. Hang in the
 balance
 57. On vacation
 58. Bovine bellow
 59. Stephen of
 "FeardotCom"


Crossword Puzzle Answers on Page 12


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 LUNCH BUFFET
 Sunday- Friday
 HOBO'S ICE CREAM
 1593 West Highway 98-Carrabelle
 697-2776
'Worth Driving 100 Miles For."
 OPEN
Sun. Thurs. 11:00 a.m. 8:00 p.m.
Friday & Saturday 11:00 9:00 p.m.
 Closed Tuesday










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