10-Year Treasury Note nears 2 Percent while Inflation Concerns Stay Elevated | Schaftlein Report
10-Year Treasury Note nears 2 Percent while Inflation Concerns Stay Elevated | Schaftlein Report
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Guest: Dr. Michael Busler – Economist and Professor of Finance Stockton University
Topics:
1) Most Small Businesses are increasing costs to try and offset Inflation
2) Weekly Jobless claims for the Period ending 1-29-22 total 238K, slightly below the estimate of 245K and below the previous week total of 261K
*Continuing Claims of 1.6M are at the lowest level since 1973
3) Productivity was up 6.6% in Q-4 2021 while labor costs were up just 0.3% as defined by hourly compensation – productivity
4) Economy grew by 1.7% in Q-4 2021 and for the whole year came in at 5.7% growth absorbing $6T in Government relief
5) Total Debt in the country reaches $15.5T, however it appears manageable for now?
a. Mortgage Debt – $11T
b. Auto’s $1.5T
c. Student Loan $1.5T
d. Credit Cards $856B
e. Mortgage rates went up 50 basis points in 2021 and already 40 basis points in 2022
*However, 2/3 of loans went to people with a 760 or higher credit score while only 2% went to subprime borrowers
6) Trade deficit up 27% in 2021 to $859B representing 3.7% of GDP – We imported $1.8T of goods
7) With headline CPI up 7% in December and housing prices soaring, the middle class is at risk of being left out of the housingmarket
8) If Russia invades Ukraine, will oil go north of $100?
*Biden say no Nordstream pipeline – Implications?
