Certainly, Certainly Not
Two doesn't make a trend, I suppose, but coming as it does after a miss on the Empire survey earlier this week, a weaker Philly Fed print won't do much to bolster confidence in the US recovery narrative.
"Current indicators for general activity, new orders, and shipments remained positive for the third consecutive month but fell from their readings in July", the Philly Fed said Thursday. The employment index also fell, albeit to a still-positive 9. For most market participants, that's probably
“And besides, the improvement in equities, credit, and other risk assets is at least partially dependent on the strength of the recovery.”
What a quaint old notion!
All this having been articulately stated what comes to mind is that this constitutes a test of MMT and it’s often debated potential consequences
Well, with MMT you would create jobs by, for example, having the Fed directly finance a massive infrastructure initiative. That’s something different from issuing a bunch of debt, having the Fed buy it from primary dealers, and then sending people checks they then spent on pretzels, detergent, and light fixtures.
Thanks , will reevaluate to include that type of option….
There is no recovery, it’s all DEBT induced binge spending per usual. Let’s sell this market so my UVXY appreciates already
“But how many new monitors, desks, and extra a/c units does one need?”
I resemble that remark.
After 2-3 months of the lowest spending (by me) in years – no vacations, no airplane rides, no eating out, barely any gas, etc., I decided to improve the standard of living in my house – where I’m spending more time than ever, cooking more than ever, watching more TV than ever, etc. So I bought a bunch of high-quality cookware, a new big TV, a new fancy Dyson vacuum cleaner, and yes, a new desk, and other new, high-end furniture. Y’know – I figure if I’m stuck here, for who knows how long, I may as well make home as klassy and comfortable as possible.
But I’m just about done. And since I bought high-quality stuff, I won’t be replacing any of this for at least 10 years. OK, that’s just me. But I somehow doubt I’m an outlier.
I did not buy anything. i use a 7 year old lap top and i stand at the dresser in the spare bedroom.
Does that make me a bad person 🙁
No, but because of The Paradox of Thrift, it makes you a Bad American.
My assumption is that the big box results (especially the online shift in, e.g., Walmart’s case) mostly reflected transfers of economic activity as hometown and small retail simply gives up the ghost and blows away. I don’t think there’s any bump at all here, sustainable or otherwise, if you look at the bigger picture. If private business is going belly up (to the tune of a million jobs a month, still) and their former customers necessarily give some business to public-company survivors, then that may “look” like a bull market in stocks, but it’s still an ugly look.