In an effort to simplify reporting, a lot is removed. Perhaps the misunderstood aspect of today’s economy is that there are two economies – that which affects core businesses that made small modifications on the edges during versus those that needed steroids starting with consumers whose ability to work was impaired. Stimulus checks to businesses and consumers was designed to keep spending uninterrupted, but no one really knew what it would be spent on. Clearly, we know a lot of spent of sub-prime and used auto prices.
The significant changes in monetary policy were not targeted at autos, food or rent, but a fist of grass seed thrown into the wind to prevent a liquidity scare. Are rising rates affecting the various diverse sectors of the economy equally – not even a little.
Sadly, it appears that the FOMC and FDIC are using an old owner’s manual to solve today’s problem. As the joke says, an old car manual tells you the ignition timing for the engine while todays manual warns you not to drink the windshield wiper fluid.