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After making $2.8 billion in airline ticket change fees in 2019, 15% of all revenue, the three legacy carriers have largely eliminated them (until they reimpose them). Carriers are desperate to encourage air travel, as the airline recovery stalled in…

Car Costs After essentially flatlining since 2014, used car prices collapsed by about 15% during the Great Lockdown of March/April 2020. Since then, they have staged a furious rally, making up all losses and some. Why? A sudden reluctance to…

If Congress and the President fail to reinstitute a federal top-up to the expired $600/week in enhanced unemployment benefits, by January GDP will decline by 1.25%, one million jobs will be lost, and the unemployment rate will rise by 0.75…

The Friday File: Prior to Covid-19, the average percentage of out-of-stock items in stores and online at any given time was 6%. Today, 21% of household paper products are unavailable, 18% of household cleaners are not on the shelves, and…

Today, Fed Chairman Powell made two small but very significant policy changes. Historically, when the unemployment rate got too low, the Fed would preemptively raise rates to reduce potential inflationary pressures. Now, the Fed will let the rate fall until…

Postal Processing In 2005, the USPS handled 25 billion pieces of first-class mail and periodicals, and 25 billion pieces of marketing mail, which includes flyers, circulars, advertising, newsletters, bulletins, catalogs, and small parcels. Since then, first-class volume has fallen by…

Through 4/15/20, positive Covid-19 tests were 20% of all tests, but testing was very limited. From 4/15/20-6/15/20 as testing jumped from 150,000/day to 500,000/day the percentage of positives steadily declined to 4%. However, from mid-June through mid-July infection rates doubled…

Herculean Housing Homebuilder sentiment is at its highest level since 1998, starts are up 23.4% Y-o-Y, all-important single-family starts are up 7.4% Y-o-Y, and overall starts are up 4.7% YTD! At the current rate of 1.496 million, starts are nearing…

The Friday File: Following an event-filled 2019/20 term for the Supreme Court, approval of the Court is at a decade high. Fully 58% of Americans approve of the job being done. The last time the Court was as highly regarded…

20Q3 GDP growth estimates currently range from 10% to 25%. Importantly, GDP is reported at a seasonally adjusted annual rate (SAAR). If 20Q3 comes in at a SAAR of 15% (my best estimate) that’s equal to a quarterly rise of…