America's Economic Future – A Discussion By Ted Kavadas
The April 2020 Wall Street Journal Economic Forecast Survey was published on April 8, 2020. The headline is “WSJ Survey: Coronavirus to Cause Deep U.S. Contraction, 13% Unemployment.” I found numerous items to be notable – although I don’t necessarily agree with them – both within the article and in the “Economist Q&A” section. Two …
The St. Louis Fed’s Financial Stress Index (STLFSI2) is one index that is supposed to measure stress in the financial system. Its reading as of the April 2, 2020 update (reflecting data through March 27, 2020) is 5.1434. Of course, there are a variety of other measures and indices that are supposed to measure financial stress and …
My overall analysis indicates a continuing elevated and growing level of financial danger which contains many worldwide and U.S.-specific “stresses” of a very complex nature. I have written numerous posts on this site concerning both ongoing and recent “negative developments.” These developments, as well as other exceedingly problematical conditions, have presented a highly perilous economic environment …
My latest discussion concerning the U.S. bond market as being an exceedingly large asset bubble can be found on “The Immense Bond Market Bubble And Future Economic Consequences” page. The existence of a bubble of this size is highly noteworthy and vastly problematical. The effects this asset bubble has had – and, more importantly – …
There are a variety of economic models that are supposed to predict the probabilities of recession. While I don’t agree with the methodologies employed or probabilities of impending economic weakness as depicted by the following two models, I think the results of these models should be monitored. Please note that each of these models is …
“Stock market capitalization to GDP” is a notable and important metric regarding stock market valuation. In February of 2009 I wrote of it in “Does Warren Buffett’s Market Metric Still Apply?” On the Advisor Perspectives’ site there is an update depicting this “stock market capitalization to GDP” metric. As seen in the April 2, 2020 …
I have written many blog posts concerning the worrisome trends in income and earnings. Along these lines, one of the measures showing disconcerting trends is that of hourly earnings. While the concept of hourly earnings can be defined and measured in a variety of ways, below are a few charts that I believe broadly illustrate problematic …
Shortly after each monthly employment report I have been posting a continual series titled “3 Critical Unemployment Charts.” Of course, there are many other employment charts that can be displayed as well. For reference purposes, below are the U-3 and U-6 Unemployment Rate charts from a long-term historical perspective. Both charts are from the St. …
As I have commented previously, as in the October 6, 2009 post (“A Note About Unemployment Statistics”), in my opinion the official methodologies used to measure the various job loss and unemployment statistics do not provide an accurate depiction; they serve to understate the severity of unemployment. However, even if one chooses to look at the …
For reference purposes, below are two charts of the VIX from year 2000 through Wednesday’s (April 1, 2020) close, which had a closing value of 57.06. Here is the VIX Weekly chart, depicted on a LOG scale, with the 13- and 34-week moving averages, seen in the cyan and red lines, respectively: (click on chart …