Power & Market

Good News and Bad News

Good News

  • Paul Krugman has declared a “better-than-Goldilocks soft landing” due to (his favored) measures of price inflation reaching two percent and real GDP growing at 3.3 percent.

Bad News

  • Credit card delinquency has doubled since 2021.
  • Regional bank stocks fell over 10% after Powell’s FOMC press conference.
  • The civilian labor force has fallen while government employment keeps reaching new highs.
  • 52.7% of political independents, who are less likely to be swayed by which party is in power, say the U.S. economy is getting worse.
  • The prices of food, energy, shelter, and used cars have risen twice as much as average earnings since 2020.
  • The yield curve has been inverted since October 2022.
  • The proportion of workers with multiple jobs recently reached levels not seen since 2007-2008.
  • Household debt to disposable income is back over 100%.
  • Stock market price-to-earnings ratios are at levels only exceeded by the 2000, 2008, and 2020 crises.
  • Small bank cash as a proportion of total assets has fallen, while also taking on large amounts of commercial real estate debt.
  • The FOMC removed the following statement from their press release: “The U.S. banking system is sound and resilient.”
Note: The views expressed on Mises.org are not necessarily those of the Mises Institute.
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