The Wile E. Coyote stock market has now looked down. Nothing but air! The “good news” data from the U.S. economy is all stimulus related. Without stimulus, Q3 GDP would have fallen double digits. The economy has yet to face the oncoming eviction crisis in the rental markets and foreclosure tsunami in the commercial real estate market. No matter how the economic numbers are presented, 22+ million unemployed tells you all you …Read More
Northern NV Will Remain Prosperous in a National Recession
My last column (Sunday, June 24th) was about the possibility of a recession near-term. On that same RGJ Business front page, the headline was “Reno Median Home Price Tops $350k” and “May Unit Sales Second Highest Recorded.” The two stories seem incongruent. But they aren’t. Impact of the Recession In the financial meltdown of the last recession, the Nevada economy was one of the hardest hit in the nation. It …Read More
The Trump Rally
For the third time in six months, markets reacted opposite to expectations. First, it was Brexit. Markets swooned after the unexpected vote. That lasted for two days before markets shook off the surprise and headed higher. Last month, when Trump won, the swoon lasted a whole 9 hours, and the tantrum ended just prior to the opening of U.S. markets. On Sunday, December 4th, when Italy voted “no” on PM …Read More
