Inflation Drops, Dow Surges, Bond Yields Fall

"Stick a fork in it, Inflation is done"

Dec 13, 2022

But is inflation done, and is that hope just the last gasp of groundless euphoria for this stock market? Does today’s rise in stocks have legs to stand, or is the market latching onto a simplistic narrative about inflation that ignores the dying labor market and the effects diminishing labor will have down the road on production in a time when workers are not available so companies cannot produce at their former levels? Powell, in trying to slow the economy to kill inflation, will reduce production further in order to reduce job openings to match down to existing labor. That will almost inevitably result in even more shortages, which can have the longer-term effect of causing inflation to rise again. Will soaring stocks today cause Powell to speak more hawkishly to quell irrational exuberance, killing the market’s ephemeral hopes tomorrow? While the market started up 500 points at the top of the morning, it was already down by half of that by the time The Daily Doom was published at 8AM PDT. (See the highlighted headlines below.)

Inflation Drops, Dow Surges, Bond Yields Fall

"Stick a fork in it, Inflation is done"

Economica (stocks in bondage, bonds in the stockade, market madness, etc.)

Housing Bubble Bust 2.0 (including commercial & global real estate)

Money Matters (monetary policy, gold, silver, cryptos & currency wars)

Overinflated (too much money chasing too few goods)

War, Cyberwar, Civil Conflicts & Unrest

Politics & Social Decay

Off-the-Beat or Just Plain Offbeat News

Creative Collapse (cartoons, humor & other creative expressions)

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