The “Economic Boom” Illusion
Upbeat data continues to make headlines. (The not-so-upbeat are relegated to the back pages.) This week it was the +6.4% spurt in real GDP. And, while the financial markets do feel a bit toppy, the S&P 500 still managed to eke out another record close on Thursday, April 29 (4211.47). “Help Wanted” signs continue to […]
When the Stimulus Tailwinds Fade
Prologue Big numbers are showing up in U.S. economic data, partly due to the low levels of economic activity a year ago, partly caused by the reopening, and partly caused by the generosity of Uncle Sam. We’ve had three helicopter money drops, two of them in 2021. The economy is rapidly reopening as seen from […]
The Rate Spike Will Damage the Recovery
Fed Intervention Needed There was quite a spike in interest rates the last week of February with the 10-Year T-Note spiking from a 1.36% level as of the close on Wednesday to as high as 1.60% intraday with a close of 1.55% on Thursday. Friday’s close was 1.45%. But, a lot of damage was done. […]