The following chart shows the natural log of retail trade. When using natural logs, constant exponential growth is seen as a straight line.
As the pandemic hit, the exponential growth of retail sales failed to the downside. Using massive and mostly temporary stimulus, retail sales then overshot the historical channel and failed to the upside. Look where it's headed next. Welcome to the world of barely damped harmonic motion.
Can You Drive a Car With Damaged Suspension?
A broken shock absorber will result in your car bouncing around, as well as excessive rolling, squatting and diving. In other words, it won't be comfortable. Plus, your car will be harder to control, especially at high speeds. For that reason, you should never drive a car with a broken shock absorber at high speeds and avoid sudden turns and abrupt stops.
If you aren't even a bit worried about the current state of the Fed's economic shock absorbers, then maybe you should be?
Early Q3 GDP Tracking
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From BofA:
Next week, we will initiate our 3Q GDP tracker ... [August 8th comment]
emphasis added
From Goldman:
[W]e boosted our Q3 GDP tracking estimat...
55 minutes ago
5 comments:
That's crazy talk. We need another $3.5 trillion on the gas!! Hit it!!!!
Who Struck John,
https://youtu.be/DtVBCG6ThDk
Shock absorbers have certainly gone bad. Even worse, I fear the transmission is going.
A transmission is the component that helps to turn the engine’s power into something the car is able to use on a regular basis. Without a transmission, you would basically sit in your car with the engine running and you go nowhere.
Mr Slippery,
I fear you are right.
https://vimeo.com/77534838
It's all right! We're clear!
Powell, you've blown the transaxle! You're just grinding precious metals!
Come on, taper down. Taper down. Taper down. Taper down.
Aliens is a microcosm of all life lessons.
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