Entries by

Bank of Japan Ends its Massive QE that Started When Abenomics Became Economic Religion of Japan

Estimated Reading Time: 2 minutes

One of the largest central banks ends QE. End of an era for Japan: Large-scale money printing was one of the three official legs of Abenomics. In terms of the absolute mountain of assets the Bank of Japan purchased over the years, it is one of the top three QE monsters, along with the Fed […]

The Monstrous Flow of Free Money and the Shortages

Estimated Reading Time: 3 minutes

Free money destroyed the pricing mechanism, and demand has soared despite much higher prices. The shortages are not at Costco or Safeway, though they too might run out of a few weird items here and there. But other retailers are complaining about them, including apparel retailers and shoe retailers – yup, it took five weeks […]

Home Prices Dip for First Time off Crazy Spike, Price Reductions Surge, Sellers Emerge, House Sales Drop Year-over-Year, Inventories & Supply Keep Rising

Estimated Reading Time: 2 minutes

“Normalization” or “deceleration,” as this phenomenon is called, is setting in Prices of existing single-family houses, condos, and co-ops dipped in July, reverting to seasonality for the first time since 2019, amid surging price reductions. Single-family house sales dropped 4.1% in July, from a year ago, the first decline since the lockdowns. Condo sales rose. […]

Shortages in Charts: New & Used Vehicle Inventories Collapsed, Supply at Clothing Stores Gets Tight, Food Stores Near Normal

Estimated Reading Time: 2 minutes

Over-stimulated demand, tangled supply chains: shortages for some, plenty of supply for others. The historic stimulus from $5 trillion in government deficit-spending and from $4 trillion in Fed money-printing within a 16 month period resulted in a historic spike in consumer spending on goods. When the demand shock hit retailers and other companies, they were suddenly […]

Dollar’s Purchasing Power Plunged at Constant Speed

Estimated Reading Time: 2 minutes

Now it’s new vehicles, restaurants, energy.  Game of Whac-A-Mole as some price spikes slow while others begin. But it’s a lot worse than it seems. The Consumer Price Index (CPI) jumped 0.5% in July from June, after having jumped 0.9% in June, 0.6% in May, for a three-month annualized rate – the three-month momentum – […]

The Most Splendid Housing Bubbles in America: July Update, Holy Moly

Estimated Reading Time: 2 minutes

Raging mania house-price inflation. House prices spiked 16.6% from a year ago, the biggest increase in the data going back to 1987, according to the National Case-Shiller Home Price Index today, which was for the three-month moving average of closed sales entered into public records in March, April, and May. But in some cities, the raging housing […]

Home Sellers Are Coming Out of the Woodwork: New Listings, Unsold Inventories & Supply Rise

Estimated Reading Time: 2 minutes

Sales edge up, after sagging for months, amid Crazy Spiking Prices Inventories of existing single-family houses, condos, and co-ops rose for the fourth month in a row. Sellers are coming out of the woodwork, and new listings have been rising for months, this being a perfect time to sell a home. Sales ticked up a […]

While the Fed Fiddles, the Dollar Burns: Dollar’s Purchasing Power Plunged at Fastest Pace since 1982

Estimated Reading Time: 2 minutes

Defying economists’ expectations for sixth month in a row, inflation heats up instead of easing off. And it’s a lot worse than it seems. The Consumer Price Index jumped 0.9% in June from May, after having jumped 0.6% in May, and 0.8% in April – all of them the steepest month-to-month jumps since 2009, according […]

Americans See the Raging Mania: “Bad Time to Buy a Home” & “Good Time to Sell a Home” Sentiments Spike to WTF Record

Estimated Reading Time: 2 minutes

If these sentiments become reality over time, it’s going to be a sea change for demand and supply at these crazy prices. So just briefly: This explains some of the dynamics we have seen in the housing market recently, with mortgage applications, sales of existing homes, and sales of new single-family houses dropping for months […]

A Glimpse at Hidden Stock Market Leverage of “Securities-Based Lending,” as Known Stock Market Leverage Spikes to WTF High

Estimated Reading Time: 2 minutes

We don’t know how much total leverage there is, but from the trends in margin debt, we know it’s huge and ballooning.   A big part of the leverage in the stock market is not tracked and no one knows what it is. Occasionally, a tidbit bubbles to the surface when something blows up, such […]