I Have A Question (and an updated audiocast)If the Fed / Treasury Department is THIS INGENIOUS AND CREATIVE, that they could create TARP and this new facility, how did they a) goose the housing market to hysteric levels and b) call inflation ‘transitory?’I dunno...
Financial Markets Crazy AlreadyFriday was stunning but easily explained: DENOMINATOR LOWER, duh.Just re-read what has been said on November 10th (Click here to read), and many times here.What is not resolved?a. So lower wage growth might be good for inflation. Is it...
CPI-W AnnouncedCOLA is now known. 8.7%, exceeding the 5.9% last year.
The Less-Publicized ProblemThere are more nuances on deck. I have only hinted at the feedback loops, and they are almost certain to persist in ways that are mentioned in the press, only in passing.First and most obvious: Chairman Powell admits that in some ways, the...
OPEC Cuts OutputMy only thought is that if you are using the price of gasoline that you pay at the pump to be evidence that oil is going lower, and that inflation is thus fixed, then you are not considering the huge number of other moving factors. A lot of them are...
Followers Completely UnsurprisedThis is what I was saying, in my interview with Art Lewis, in April. Markets didn’t reflect the inflation, the effect of increased interest rates on asset prices (your house is now cheaper than in April). March:April:JuneJuly
Now WhatThe observations regarding the peculiar combination of financial markets events didn’t start yesterday, or the day before. We’ve been tracking all the back to Q1, 2021, when the combinations started reacting oddly. There has been a LOT of time to adjust. A...