Econ70

In 20Q1, GDP declined at an annualized rate of 4.8%. This means that GDP declined at a rate of 8.8% in just March after growing at 2% in January and February. This suggests that in April, GDP will decline by…

During the week of 3/2/20, before Covid-19 had much impact on the US economy, 0.25% of all mortgage loans were in forbearance. During the week of 4/19/20 the rate was 6.99%, up from 5.95% the previous week! At 6.99%, 3.5…

For the week ending 4/17/20, US petroleum demand averaged 14.1 million bbl/day, down 31% from the 2020 average through 3/13/20 before travel restrictions began. The 14.1 million bbl/day level is up slightly from 13.8 million bbl/day the previous week; the…

The Friday File: America’s most popular sandwich is grilled cheese, with 79% of respondents liking or somewhat liking it. Next, in a fowl tie is the turkey sandwich and the grilled chicken sandwich at 75%. Roast beef follows at 71%…

While the economy is shrinking quickly as we are in a brief depression (there is no definition, but a GDP decline of 7.5%/year or more works for me), the data is no longer all dismal. Car sales may have stopped…

While politicians can argue about who has the authority to reopen the economy, in the end it is consumers and businesses that will make that decision based on safety and security. Early evidence from China (which is at best an…

Over the last four weeks, 22 million jobs have been lost, 13.3% of the labor force. Add the initial unemployment rate of 3.5%, and the unemployment rate is 16.8%. By the end of the month, it will be meaningfully higher.…

Plunging Petrol In a move without precedent, the price of a barrel of West Texas Intermediate crude for May delivery closed at -$37.63; there is simply no place to put it. Producers are literally paying buyers to take the oil!…

The Friday File: On 11/10/19, three drivers in an innocent looking 2015 Mercedes Benz E63 AMG loaded with electronics sped from NYC to Redondo Beach, CA, the Cannonball run, in a record 27 hours and 25 minutes. But on 4/4/20…

First-time mortgage applications have fallen for five straight weeks and Y-o-Y activity is now down a painful 35%. Add to that a 42-point fall in the NAHB Housing Market index for March to 30, the lowest level since 6/12 and…