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The US Economy Is Failing

Paul Craig Roberts

Do the Wall Street Journal’s editorial page editors read their own newspaper?

Back in mid-July, Bank of America chief investment strategist Michael Hartnett wrote "The Most Dangerous Moment For Markets Will Come In 3 Or 4 Months" in which he warned that "further upside in risk assets will create problems later in the year" and concluded that "ultimately, we believe the extremely strong performance by equities and bonds in H1 is very unlikely to be repeated in H2" because "monetary policy will have to tighten to raise volatility, reduce Wall St inflation, and reduce inequality.

Americans' confidence in the economy has waned slightly following Hurricanes Harvey and Irma, which caused more than $100 billion in damage, pushed up gas prices and spurred a jump in unemployment filings.

Overall, Bloomberg reports that the share of consumers expecting good times financially in the economy fell to 47 percent from 54 percent in August.

Share of consumers judging home-buying conditions as favorable was at five-year low...

Kevin Warsh's PredictIt odds to be the next Fed chair soared moments ago after the WSJ reported that President Trump and Treasury Secretary Steven Mnuchin met with the former Fed governor on Thursday to discuss his potential nomination as the next Federal Reserve chairman, "a White House official said, signaling that the West Wing is moving ahead with a process that the president has said he would like to have completed by the end of the year."

In immediate reaction, Warsh's odds jumped by 10% to 45% while Janet Yellen's tumbled by 8 to 24%.

Everything is awesome again in Chicago apparently...

Against expectations of a modest drop from 58.9 to 58.7, MNI's Chicago Business Barometer exploded higher to 65.2 in September...

This is well above the highest analyst expectation and 5 standard deviations above expectations...

Under the hood, it's also awesome...