70 Words

Loving Labor

November net job growth was strong at 263,000. While it’s the weakest number this year, signaling a softening market, it’s still way too strong. To wit, M-o-M wage growth rose a very robust 0.6%, the highest rate since 10/21. Moreover, the labor force participation rate has now declined for three … [Read more...]


Simply Soccer

The Friday File: Since the first World Cup in 1930, eight nations have won. Brazil is the only nation to have competed in all 21 World Cups (no competitions were in 1942 and 1946) and has won five. The best U.S. showing, third place in 1930 in Uruguay. Pele has won the most times, three. The … [Read more...]


Stupendous Shipping

Pre-Covid, the container shipping industry earned profits of $1 billion/quarter. With the arrival of Covid, however, profits soared. During 20Q4 they were $10 billion, in 21Q1 they hit $20 billion, by 21Q3 they were $48.1 billion, and in 22Q1, $58.7 billion. The peak, 22Q2 at a mind-blowing $63.7 … [Read more...]


High Housing

Due to rising prices, the maximum size of Fannie Mae and Freddie Mac conforming loans is now $726,200, and in high-cost areas a mind-numbing $1,089,300. If the argument is that this boosts affordability, it’s dead wrong! Raising limits allows more people to qualify for a fixed number of houses, and … [Read more...]


Contractionary Conditions

There are six regional Federal Reserve Bank monthly surveys of economic conditions. They are put out by the Chicago, Dallas, Kansas City, New York, Philadelphia, and Richmond banks. At present all six are in contractionary territory. Since 1969, and before this most recent occurrence, this has … [Read more...]


Chinese Cracks

October retail sales sank by 0.5%, the first decline since May. This is the result of the weak real estate sector, sinking exports, and the weight of China’s bizarre zero-Covid policy. At present Covid cases are breaking records daily, and the number of high-risk cities is almost 180, and represent … [Read more...]


Thanksgiving Thoughts

Despite many economic shocks, I’m thankful that the unemployment rate is near a 50-year low, supply chains are unsnarling, the stock market always recovers from bear markets, interest rates are up, making interest income easier to come by than any time since the Housing Bust, Covid deaths are near … [Read more...]


First-Time Financing

With mortgage rates dipping last week by 24bps to 6.9%, the largest decline since July 2022, and home prices trending down since peaking in June, first-time mortgage applications spiked a pleasant 4.4% W-o-W for the week ending 11/11/22. Still, they remain down 39.9% Y-o-Y. As for refinancing, … [Read more...]


Low Layoffs

Initial jobless claims, a proxy for layoffs, fell to 222,000 for the week ending 11/18/22. While that is up significantly from the lows of the spring and fall, the last time first-time claims were lower than they are now in November was 1969! Firms are clearly hoarding workers as they are so hard to … [Read more...]


Soccer Scoring

The Friday File: With the World Cup beginning Sunday, here are my odds of victory for the top nations. Brazil 5/1, Argentina 6/1, France 7/1, England 9/1, Spain 9/1, and Germany at 11/1, and the US at 100/1. As for the tournament’s top goal scorer, Harry Kane of England is my pick at 8/1 followed by … [Read more...]