Econ70
Financial markets are jittery about the Fed’s plans to taper its monthly purchases of Treasuries and mortgage-backed securities, not so much because tapering itself is likely to raise rates, because it won’t. Rather, markets fear that the end of tapering…
The latest projections for Social Security and Medicare find, somewhat counterintuitively, that the combined funds will run out of money in 2034, a year earlier than previously expected, due in no small part to Covid-19. While the pandemic-caused spike in…
Inflation is not all the same. Commodities like soybeans, lumber, oil, and even used cars and silicon chips can fluctuate sharply but have little, if any, momentum. Conversely, wages and movie tickets tend to rise slowly, but importantly, can create…
Congress increased the size and duration of unemployment benefits and the universe of unemployment insurance recipients. In June and July, 26 states ended some or all those benefits prematurely to encourage the unemployed to return to work. This patchwork allows…
The Friday File: By square miles (mi2) Vatican City is the smallest country on Earth at 0.19 mi2. Coming in a distant second at roughly four times the size is Monaco at 0.78 mi2. Next comes the southwestern Pacific Ocean…
Since 1/1/2021, the Conference Board’s monthly survey of consumer confidence has been steadily rising, while the University of Michigan’s monthly survey of consumer sentiment has been softening. The Conference Board essentially looks at labor market conditions and they’ve been improving.…
There are currently 16 House members that have announced they will retire. While evenly divided between Democrats and Republicans, the Republican retirements are all in heavily Republican districts. Conversely, half the retiring Democrats are in Republican leaning districts, three others…
With most, if not all forbearance programs soon to end, I expect three foreclosure waves. First, a foreclosure spike when the moratorium lifts, resulting from households in trouble before Covid-19. Second, a steady monthly stream between now and when the…
While July’s retail sales numbers (which include almost exclusively purchases of goods) were not stellar, some perspective please. First, the Delta variant necessarily had some impact, and may well have more in August. Second, the fact that online spending and…
The Friday File: At the 100th Saratoga Sale earlier this month, 135 yearlings sold for $55,155,000. The average price, $408,556, just shy of the 2019 record of $411,459. The median price was $350,000, equaling the record set in 2019. The…