Category: Economics

  • When Are Home Prices Dropping?

    When Are Home Prices Dropping?

    Various factors are pushing housing to extremes that have not been seen in generations, if at all. Home prices are just off all-time highs, while mortgage rates are at the highest in over a decade. With mortgage rates increasing so quickly in 2022, people wonder when home prices will drop. Ultra-low mortgage rates and a […]

  • Using the Strategic Petroleum Reserve To Fight Inflation

    Using the Strategic Petroleum Reserve To Fight Inflation

    The inflation numbers for August came in hotter than expected, rising 0.1% for the month against the falling forecast. On the surface, it does not seem too bad, considering inflation is over 8% for the year, and it paused in July. The Fed and investors were by far and away hoping that they had seen […]

  • Investors Should Worry More About Quantitative Tightening

    Investors Should Worry More About Quantitative Tightening

    There is a lot of negative sentiment in markets now, just as inflation pain and recession fears began to ebb. Despite zero evidence, many investors were banking on the FED pivoting from the aggressive rate hikes sooner rather than later. Some investors got ahead, bidding stocks off their June lows for a mid-summer rally in […]

  • Recession or Nah?

    Recession or Nah?

    The recession debate has died down a bit as political and financial commentators gravitated to the next dumb debate over the White House’s quote of zero inflation for July. Inflation was zero for July. The inflation rate for the twelve months ending in July is 8.5%. I am unsure if it was worse seeing so […]

  • What Exactly Is a Recession?

    What Exactly Is a Recession?

    So, how are things going in the economy? Not great. But not terrible either. While the jobs market remains strong, the biggest concern for consumers and policymakers is inflation. The Fed is rapidly increasing rates to tame inflation. However, the Fed may not be able to do a lot to cure the supply chain issues […]

  • What A Year This Quarter Has Been

    What A Year This Quarter Has Been

    It has been a difficult quarter for investors. Major indexes entered bear territory (means down 20%). US treasuries, generally the safest of assets for when investors are scared, have had their worst year since the 70s (when interest rates go up, bonds go down). Commodities, which I generally say “they suck until they don’t,” have […]

  • The Economy: How Did We Get Here and Where Is It Going?

    The Economy: How Did We Get Here and Where Is It Going?

    Markets have been getting a lot of attention lately beyond the financial media. The S&P 500 is down 21%, the tech-heavy NASDAQ 100 is off over 29%, and the smaller company-oriented Russell 2000 is down over 24% year to date.  Investors have a lot of concerns over the economy right now:  Investors are facing a […]

  • Will Rising Mortgage Rates Cool Hot Housing Market?

    Will Rising Mortgage Rates Cool Hot Housing Market?

    The housing market is hot. It has been surging since the beginning of the pandemic. The Federal Reserve cut interest rates to historic lows and began purchasing bonds and mortgage securities in an extraordinary effort to boost the economy. As a result, mortgage rates fell to historic lows and stayed there until very recently. Now, […]

  • Politicians Can’t Do Much About High Oil Prices

    Politicians Can’t Do Much About High Oil Prices

    The price of oil is surging, and so is the debate over what is causing the fastest runup in recent memory. As we approach the midterm elections, candidates and the broader media will continue to discuss gas prices and inflation. What has caused the surge in oil prices, and can policymakers do anything about it? […]

  • Your Guide to Talking About Inflation

    Your Guide to Talking About Inflation

    Inflation is on everyone’s mind at the moment. Many are unfamiliar with how this particular bout of inflation came about or how bad it could get. Or worse, some people know just enough to sound like they know what they are talking about on the subject. In this post, I will look at each of […]

  • Inflation Rates Are Rising: What You Need to Know

    Inflation Rates Are Rising: What You Need to Know

    Inflation seems to be all the rage today with traditional and financial media, and for a good reason. Globally, inflation rates have increased significantly over 2021. Inflation rates are running higher for consumers than in over a generation, and that has many people asking: How does inflation work? Should I be concerned about inflation? What […]

  • OK Boomer: How the Economy Was Ruined for Millennials

    OK Boomer: How the Economy Was Ruined for Millennials

    Avocado Toast Is Under-appreciated Boomers have been on the backs of us millennials ever since we entered the workforce. Millennials are called coddled, lazy, entitled, “The Boomerang Generation” and “The Peter Pan Generation.” Some of this is true. Still, it is most unfair, especially as many previous generations have exhibited similar same traits. However, millennials […]