A rough week in the markets . . . .

Last week was a rough one in most major markets across the globe.  Oil prices continued to fall, dipping below $125 a barrel, though I am still paying $3.89 a gallon at the pump!  The new worry coming into back-to-school and then the holiday shopping season is related to retailers and raising prices.  The big retail outlets have tried to be supportive of the consumers in these tough economic times, though suppliers are now raising prices to them so it may be hard for the Costcos and Wal-Marts to not pass these prices on to the consumers, tightening the wallets and purses of consumers even more.  Other worries for the remains of summer is the heat wave moving through the country now.  Yes, it is the end of July and it can get hot (August is the hottest month), but overall it has been a pretty normal summer with very few heatwaves (though other weather issues - rain, floods, etc. - have been in the news) have occurred.  Last week the heat wave had gripped most of the country with more expected this week.  This should cause an increase in utility usage which in turn (supply/demand) will cause an increase in consumer spending to cool themselves off.  I think by now the government's economic stimulus checks have all been cashed so it will be interesting to see if discretionary spending comes to a halt or is it just temporary (dog days of summer) before the holiday shopping season!