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THE SURVEY SAYS? Inflation remains a concern…a big one. Two important economic reports hit last week, and they both reeked of inflation. The Producer Price Index showed that wholesale producers of goods are experiencing higher costs, and right on its heels, the Consumer Price Index showed that those increased costs are being passed onto consumers like you and us.

PLAY IT AGAIN, BEN...That's right, for the sixteenth time in a row - in less than two years - the Fed "played it again"...another rate hike. As expected, the Federal Reserve went ahead and hiked rates to the tune of another .25%, to bring the Fed Funds Rate to its highest level in five years at 5.0%.

"ROLLERCOASTER....OF LOVE...SAY WHAT?" (Lyrics by the Ohio Players) Last week sure was a rollercoaster in the Bond market and home loan rate world, complete with gut plunging drops and exciting rides higher...but what brought about all the excitement? Not love...but some super interesting news on the economy. Let's take a closer look and see what it all means.

"I HAVE NEVER DEVELOPED INDIGESTION…FROM EATING MY OWN WORDS." Winston Churchill But the media may not feel exactly the same way, especially when housing reports came in super strong once again this week, and offered the media a full plate of their own "bubble-talk" to eat up and enjoy.

WHO'S IN THE HOUSE NOW? HU, HU, HU, HU! That's right...Chinese President Hu Jintao was in the White House last week, and his visit had the financial markets on edge. Why? Let's take a closer look, as the current situation between China and the US not only impacts home loan rates but also the goods and services you purchase every day. Presently, there is a massive trade deficit between China and the US. How big is the deficit? To put it in perspective, aside from China - the US imports $4 worth of goods and services for every $3 we export. While this in itself represents a significant trade deficit, it's nothing when you compare it to China alone - where the US imports $18 for every $3 of exports.

It's Rabbit Season! No, it's Duck Season! Rabbit Season! Duck Season! Actually, it's EARNINGS SEASON...the time when publicly traded companies release their quarterly earnings results. This barometer of the health of corporate America and the stock market can set the tone for Fed action, stock prices and interest rates.

EVER WATCHED A SUPER SCARY MOVIE? You always know when to expect the big scare. You are primed and ready to jump, because the music is high and intense...the terrified looking actor is backing into a menacing hallway (who actually ever does this?)...the scene is dark and shadowed. But the biggest scares actually come when you least expect them - you've just let your breath out in relief as they switch the lights on and find all is well - when suddenly the crazed local cat screeches and jumps onto the actor's head.

HELICOPTER BEN, PRINTING PRESS BEN, BIG SWINGING BEN...He's been called many names, but Federal Reserve Chairman Ben Bernanke probably disliked being called an "inflation wimp" the most. So Chairman Bernanke came out on Tuesday and flexed some muscle against inflation, hiking the Fed Funds Rate another .25% last Tuesday.