“The Phillips curve now is fully ‘alive’, only to be half-ignored”.
“We’re all mad here”.
And see, that’s where the problem comes in.
But I don’t want to go among mad people.
Oh, you can’t help that. We’re all mad here.Â
“It appears ‘indestructible’, but not in a conventional way, more like a survivor of oneâ€™s own death.”
“Immaculate disinflation” has a nice ring to it. Angelic, even. But how about “American utopia”?
While you can expect high frequency indicators to start reflecting the various lockdown protocols instituted
But what isn’t ludicrous these days?Â
“The market appears to have overlearned the lesson of the past few years.”
“No, I do not.”
“That’s a brand name”.
Modernity in its later phase reads like mankindâ€™s love affair with authority.
Well, that works.
This is just further evidence that the tight labor market is gradually leading to wage inflation, the so-called “missing ingredient” for the Fed.
It can’t possibly be as bad as last week, right?
“…the length of the current bull market in balanced equity/bond portfolios is now the longest on record.”
“…the equity market likely implies that the Fed is underestimating various risks.”
“This could further escalate the rates selloff in unruly fashion”.
“From there, itâ€™s aboutÂ Octoberâ€™s large Quantitative Tightening impulse”.
“We see a case for being long vol next year.”
For what it’s worth…
“Protectionism could set off a succession of negative consequences. If all the elements were to combine, we could face a perfect storm.”
Don’t rule it out.
“In this environment the infamous carry-trade will come under pressure and the misallocation of credit will be revealed.”
Get ready to be “taxed”, you consumers, you.