TWO LOOMING QUESTIONS

As Yoda says, "Always in motion is the future"

Inflation numbers are out, and they aren’t good. I think we’re seeing the first “catch up” by businesses and corporations of the stagnant Rutabaga years, i.e., businesses think that for the first time they aren’t treading water and can raise prices a little to pay off debt. I know in my Wild World of History, the first two active business months, which, for us, are Feb/March, were pretty slow compared to normal. But things have really heated up.

Anyway, we’ll see. Certainly the new inflation numbers aren’t going to help Trump’s case for lowering interest rates. However, if there is even a whiff of recession, you might see those rates come down some. Yesterday, Wolf Richter reported that new mortgage applications were up 17%. Here in Phoenix, building hasn’t slowed one iota . . . but sales of existing homes are stuck.