Archive for April 2017

The percentage of the US population with a bachelor’s degree hit 33.4% in 2016, the highest percentage ever. In 2010, the percentage of college graduates was 30%, and in 1940, the first year such data was collected, just 4.6% of the population had finished college. For those over 24, average earnings were $35,615 for high…

Before quantitative easing, the Fed’s balance sheet was $900 billion, 6% of GDP. Today, it’s $4.47 trillion, 24% of GDP. Assuming the Fed wants the balance sheet to again be 6% of GDP, and assuming nominal GDP grows 3%/year, by reducing its balance sheet by $520 billion/year (or $43.3 billion/month) starting 1/1/18, by 12/31/23 —…

February pending home sales surprised, rising 5.5% M-o-M, and are at their highest reading since 5/06, while house prices rose a strong 5.7% during the three months ending 1/17. Moreover, February new home sales were 592,000 seasonally adjusted, their second-best level since 2/08, and February housing starts hit 1.288 million seasonally adjusted, their second highest…