Peter Bookvar on Palisades Gold Radio
Tom welcomes back Peter Boockvar of the Bleakley Group. Peter discusses the latest CPI prints and the transportation bottlenecks. These logistics issues are likely to persist to the number of trucking and shipping companies that went out of business in recent years.
High prices for houses have forced many to seek rentals driving rents higher. These are long-term structural issues and with low-interest rates, home prices have risen significantly. The ongoing mix of fiscal and monetary largess has caused many of these problems.
Infrastructure spending is pulling workers away from other employers and projects. This spending won’t necessarily do much for the economy. We need to stop spending and reduce some of this liquidity and get control of inflation.
Market corrections tend to occur around the Fed’s taper plans which is when we often see pullbacks. Therefore, we’re unlikely to skate through this taper program either. What the Fed does this time around will be interesting as they will risk tanking the dollar. It will probably be a no-win scenario as markets today are drunk on easy money.