112 ordspråk av Stephen Stanley
Stephen Stanley
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The market seems to be betting that the storm won't have a long-term impact, but that really depends on how much the storm disrupts the oil infrastructure, something we may not know for weeks.
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It is still far too soon to say how the economy will respond to Katrina, but so far, so good. Things are improving so far about as quickly as could be expected.
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Clearly, Fed officials are more worried about the threatening things that they see (energy spike, eroding slack, etc.) than the benign core consumer price index readings.
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The 'economy is weakening' crew will have a field day with this report. But until we see two weak numbers in a row, I am absolutely unconvinced. . . . Disappointed? Definitely. Changing our big picture view? No.
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We know that a flood of Katrina-related claims is coming. The magnitude and the timing are uncertain, but the figures will clearly be boosted sharply very soon.
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The levels in July were too high for the reality of what is truly going on in manufacturing. The move back in August is to a more realistic level.
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The question now is what impact the hurricane has on the economy and for how long.
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The main story was oil. Volumes and prices both rose in June, so petroleum imports jumped sharply.
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The U.S. economy is simply stronger than that of most of our trading partners and modest currency movements have proven insufficient to remedy the balance.
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The report follows the recent pattern of strong growth and no inflation.
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It is definitely clear that (housing) is one area where you will see less growth,
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The consumer never really missed a beat, and now attitudes are beginning to catch up to reality. Once again, watch what they do, not what they say.
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The still-massive swing in the pace of stockpiling in the second quarter sets the stage for an explosive third quarter.
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Katrina is a little bit different because you're also threatening the energy system. We're still trying to figure out exactly where we are on that. The near-term implications are pretty extreme.
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Not only will the market be surprised if we get to a 4.25 funds rate at the end of year, but 4.25 is by no means going to be the end. You're going to see a significant backup in yields to reflect that.
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