Blog Archives

From Housing to Labor and Back Again

From Housing to Labor and Back Again

I think this chart is what keeps Jay Powell up at night. If he were convinced beyond a reasonable doubt that we were still in the same low inflation regime that had been present for decades prior to Covid,

Read more ›



Powell's Conundrum: Demand and Supply

Jay Powell Conundrum

In my 35 years working at CWS and the years before that in college, when I first started taking economics classes, the most common term to find the equilibrium to determine optimal price has been “supply and demand.” I have also come to learn that words matter,

Read more ›



Labor, Housing, and Fed Policy

It’s becoming even more clear that in order to stifle inflation, the Fed is going to have to induce a recession.

The following chart shows that it takes a recession to stamp out inflation or bring it down even more,

Read more ›



Laboring over Labor

Labor Manufacturing

We finally had a CPI report that the market responded favorably to. The prior six releases led to market losses. Last week’s report led to a nice gain.

Markets celebrated July inflation figures S&P 500 response to US CPI figures in 2022

As an aside, this chart shows how incredibly fast margin debt went up and now down during the bear market that just took place.

Read more ›



Categories

Free Insights