Necessity Breeds Innovation, Freight Increases, Stimulus Plan Released
One exciting outcome of the pandemic is innovation. This story is a classic example of starting a business out of need for income and demand in the market. According to the census bureau this is happeningaround the country at the fastest pace in a decade. Rates – recovered some of their losses from the previous […]
2021 Indicators, Jobs Report, Rates Increase
Insight for 2021: – Basic needs: Between the end of August and December the number of Americans not getting enough food increased by 5M and is now up to 27M or 1 in every 8 Americans. Hopefully this will drop back down by 5M with new stimulus extending unemployment benefits– Service spending: spending money on […]
Rural Relocation Bonus, Massive Appreciation, Jobs Update
Instead of offering tax incentives to lure corporate headquarters, some rural cities are offering ‘relocation bonuses’ of up to $10,000 & a new bike to draw young professionals working remotely to their towns. Rates – improved slightly this week as Mortgage Backed Securities (MBS) bounced up, breaking outside of the narrow December trading range. This […]
Capitalist Xmas Tree Story, Rates Flat, Jobless Claims Increase
Wanna understand the economics of Christmas Tree sales? Why not drive to the auction house and buy a truckbed full? Spoiler alert – they didn’t end up making a profit but one of their customers was a composer and made a great carol out of it. Rates – the price of Mortgage Back Securities (MBS) […]
Shipping Delays, Rates Mellow, Market Euphoria?
Shipping delays, especially for smaller retails who use the more affordable USPS, are worse than ever this year as online retail volume increased nearly double the expected 20% increase. The retailer in this story experienced 20% of orders delayed up to 4 days (in addition to loss of packages) and had to eat the cost […]
Thanksgiving Dinner 35 Year Low, Homes Appreciate 7% Nationwide
For 2020, the average cost of a Thanksgiving Dinner for 10 people was $46.90. This is a 4% decrease from last year and the lowest level since 2010. If you adjust for inflation, there hasn’t been a cheaper year since the survey started in 1986. Turkey prices dropped 7% year over year to $1.21 per […]
New Construction Demand, Home Sales on Fire
“We have been under producing for the past decade,” – Lawrence Yun, chief Economist of NAR hopes that an infastructure bill will bring high speed internet and public transportation to rural areas increasing the demand to build in places where it is cheaper and quicker to build housing. Rates – improved slightly this week as […]
Turkey Futures, Loan Performance, Tepid Inflation
As someone that loves turkey leftovers (porridge, ramen, pasta, tacos) I’ve never had a problem buying/eating a larger. This year we will likely see an oversupply of turkey and lower turkey prices after peak season. Rates – ended the week where they started with some fluctuation in response to Pfizer’s vaccine announcement (upward pressure) as […]
Biden Economics, Jobs Report, Home Sales
Now that the election is finally decided, what does that mean for the economy? Biden’s plans include ambitious government spending on energy & infrastructure. The longer form details from Moody analytics can be found here. Joe’s ability to impart policy change will be partially predicated on the undecided senate elections. The Biden jobs and infrastructure […]
2021 Contribution Limits, Appreciation Strong
The IRS increased contribution limits for SEP IRA & Solo 401K contributors by $1,000. They did not increase the limit for traditional and Roth IRA’s and slightly increased the HSA contribution limit. All of these accounts enjoy tax advantaged growth. Rates – experienced nominal fluctuation this week. The 10 Year US Treasury note continues its […]