Several signs have appeared in the past few weeks that indicate buyers are suffering from fatigue and may have gone about as high as they are willing or able to go. While housing prices have shot up for months, wages have stagnated. Government stimulus checks have offset that, but you cannot really make a long-term […]
Archive for May, 2021
Is the Housing Market about to Top Out?
Posted May 31, 2021 By David HaggithThe Fed’s Argument That It’s Not Directly Financing Government Debt Finally Fails
Posted May 28, 2021 By David HaggithThe most interesting thing about what the Fed is now doing is that it is illegal. The Fed’s argument that it is not monetizing the US debt fails now on its own terms. The Fed is buying treasuries for no purpose other than to directly finance the government’s escalating debt. Here’s the deal:Â
Inflation Flying in Hotter than Ever!
Posted May 25, 2021 By David HaggithAll those economists who went along with the Fed’s inflation-is-temporary-and-going-per-plan narrative are stunned by the data they now see coming in. They shouldn’t be, as it was predicable. However, they will need to get bigger charts to make room for it. Notice where the last ten data points for the increase in inflationary surprises are […]
As another Inflation Foreshock Rattles Markets Around the World, Fed not Fazed
Posted May 20, 2021 By David HaggithStock markets got a jolt of the wrong kind on Wednesday when release of Fed minutes showed a little more talk of the Federal Reserve tapering its stimuli took place than what Fed Chair Jerome Powell let on earlier in the month after the FOMC meeting, which sets monetary policy. While the news was as […]
Inflation Will Kill This Stock Market
Posted May 12, 2021 By David HaggithI’m not saying nothing else can do the job before inflation fully gets here, just that the kind of inflation I’ve been writing about certainly will do it if nothing else does. That’s what terrifies the market and for a very good reason that may not be the first one that comes to some investors’ […]
Inflation Tsunami Sirens Are Screaming!
Posted May 7, 2021 By David HaggithYou can wait for the deluge to hit and then run, or heed the sirens just in time. As I wrote a year ago, the big news for these COVID years would likely be inflation at levels we haven’t seen in a long time. The best harbingers for this kind of disaster for the average […]
Over-Fed but Malnourished
Posted May 7, 2021 By David HaggithIs the inflation I’ve been writing about really all just transitory as Papa Powell claims it is? The Fed Head assures us he has this under control. Would that be just like Father Fed and friends had bank reserves under control right before the repo crisis blew up in late 2019? Or just like they […]