The Recovery: Is The Glass Mostly Full or Mostly Empty?

The recent news on the COVID-19 crisis has been mostly negative, suggesting that the recovery may be experiencing a major setback (the glass is mostly empty). However, a variety of reports on the economy recently have pointed to unexpected vigor (it’s mostly full). Granted, many of these reports are from June, before the recent COVID … Continue reading The Recovery: Is The Glass Mostly Full or Mostly Empty?

Buoying the Market: An Era of Ultra-Low Interest Rates

Many have puzzled over the rebound in the stock market during this period of COVID-19 struggles. The blue-chip S&P 500 stock price index is only 6 percent below its mid-February peak, having recovered more than 80 percent of its COVID-related losses. Moreover, the Nasdaq index—a barometer of the tech sector—has soared to new highs. Has … Continue reading Buoying the Market: An Era of Ultra-Low Interest Rates

Can You Spare a Dime? Have Coins Gone the Way of Toilet Paper?

Perhaps you bought something recently and were told that the merchant could not make change because of a shortage of coins. The merchant may have been told by his or her bank that the bank has imposed a limit on the coins that it will dispense to its business customers because it has been subjected … Continue reading Can You Spare a Dime? Have Coins Gone the Way of Toilet Paper?

Could the Recovery be Losing its Legs?

Recent disappointing news on the spread of COVID-19 has raised questions about whether the rebound in economic activity has been dealt a serious blow. Ironically, this comes at a time when the blowout 4.8 million increase in employment in June again surpassed forecasts by experts by a country mile. Will these emerging chutes of economic … Continue reading Could the Recovery be Losing its Legs?

Any Signs of Inflation Yet?

Since mid-March, the M1 measure of the money stock has grown $900 billion—an increase of more than 20 percent over just two-and-a-half months. If it kept this pace, M1 would double in a year. Accompanying this, the Federal Reserve has injected massive amounts of liquidity into our economy by purchasing more than $2-1/2 trillion of … Continue reading Any Signs of Inflation Yet?

Has the Market Gotten Ahead of Itself?

Each day, it seems, the stock market moves closer to its February peak. After a late-winter plunge that erased roughly $7 trillion in household wealth, the S&P 500 index has recovered nearly all of those losses. Are investors in the market oblivious to the ongoing damage from COVID-19? What about the upheaval over the death … Continue reading Has the Market Gotten Ahead of Itself?