Commentary
The spin machine on inflation news has been working on overdrive. Yesterday’s CPI release revealed terrible news and that was obvious within seconds of the release. It was a shock so perhaps it is understandable that the pressure of deadlines caused major media to downplay how grim it was. First we were told it was “easing,” a verb obviously refuted by the facts before our eyes.
By noon, it became obvious that the first reports were completely wrong. Financials crashed, with the Dow Jones Industrial Average down by 800 points. Four hours later, the reality was fully processed. This was grim: inflation is not only not going anywhere; it might in fact be heating up. The DJIA closed down 1,300 points, the worst day in two years….