The Budget Problem Is Now

October 18, 2023 The budget problem has arrived.  Budget deficits are averaging $2.0 trillion which means that the government must issue an equivalent amount of debt every year to pay its bills.  As a result, debt in relation to GDP is expected to climb to 119% by...

Inflation Revisited

August 11, 2023 In the wake of the July CPI data there is a growing perception that inflation is steadily subsiding and that the Fed will not need to increase the funds rate further.  We are not so sure.  Several factors seem important.  First, will the economy slow...

The Acute Housing Shortage

July 21, 2023 After a promising start at the beginning of the year, existing home sales have fallen steadily in recent months to the lowest level in years.  On the surface it appears that the housing sector is experiencing serious difficulty.   While it is  true that...