The Weirdest, Most Distorted Economy Ever
Between the Federal Reserve, Congress, and covid, navigating the business cycle is equivalent to sneaking through a house of mirrors. The stock market is making new highs as unemployment rates do the same. Thousands line up for free food and soon will do the same to be vaccinated. The nation’s governors tighten restrictions by the day while the Federal Reserve remains loose in its monetary operations.
Wolf Richter of Wolf Street has split the US economy into “the weirdest economy ever” when writing about the trucking boom and Online sales and “the most distorted economy ever” when addressing the record low junk bond yields.
Trucking companies had cut their equipment orders to nothing during the two-year-long freight recession. But by September, according to Richter, “they were ordering large numbers of class 8 trucks that haul the goods across America. And in November, orders for class 8 trucks exploded to 52,600 orders, according to FTR Transportation Intelligence, matching the prior two historic records of July and August 2018.”
People are buying stuff because they haven’t been buying dinner out and plane tickets. And stuff must be shipped. “Fleets are placing big orders anticipating needing more trucks throughout next year,” FTR said. This was triple the number of orders in November of last year, the biggest year-over-y
Article from Mises Wire