Monthly Archives: May 2022

The Smoking Crack Spread

Right now, the traditional relationship between crude and refined products is broken. WTI is anchored around $100-$110 a barrel, suggesting that — in barrel terms — gasoline, diesel and jet-fuel prices shouldn’t be much higher, once you add the average refining margin.  In reality, they are a lot more … Continue reading

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County Median Home Prices

The map [below] allows you to see the median home price for each county. Applying the House Price Index growth from FHFA to the latest housing data from the American Community Survey (ACS), we calculated a median home value for … Continue reading

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Nonlinear Thinking: How Robotic Surgery Works

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Go With The Deep Flow

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The Washington Sausage Factory

Click here for better resolution of the above graphic.

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Where Is The Neutral Fed Funds Rate?

True Confessions:  We don’t know, and neither does anyone else, including Chairman Powell and the FOMC.  What Is the Neutral Rate? The neutral rate is the theoretical federal funds rate at which the stance of Federal Reserve monetary policy is … Continue reading

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CK Chart Sunday

Since CK loved charts, we will honor her with a weekly (consistent as we can) chart series with addition of a few of our comments. 1. Crypto Crash  Rising speculative asset values that are not backed by production are inflationary … Continue reading

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Larry Summers On Inflation

Rate hikes can slow the flow of endogenous money (market and credit-based), but there is too much base money (central bank created) in the global economy.  Much of the supply chain disruptions are from too much demand swamping supply capacity.  … Continue reading

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The World Needs An Immaculate Mass Conception

What a sad commentary on our society at large, which, we infer is partially the result of the messy world the younger generations have inherited from the Boomers. GMM has been writing about the Clash of Generations for years. Generation … Continue reading

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S&P500 Key Levels

The next big number on the downside for the S&P is 3838.79, which brings the first Fib retracement level of the secular bull market that began in March 2009 into play. It will get some attention. Watch that space.  

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