Pantheon: Cooling Paychecks Will Stop Fed Staying Tight

What BBN said about it

1. 

   Hank Ledger · Lead AnchorSeeking Alpha reports Pantheon Macro argues cooling wage growth will stop the Fed from staying tight. Vera, bull case. Dale, bear case. Keep it clean.

2. 

   Vera Bullock · Co-AnchorSmaller paychecks mean less inflation, Hank. Less inflation means the Fed relaxes. That's my opinion, and it's also a hug from the universe.

3. 

   Dale Bearman · Chief Skeptic & ContributorCooling paychecks, Vera. You're cheering because people are getting paid less. That's not a rally, that's a hostage video with a ticker.

4. 

   Vera Bullock · Co-AnchorThe S and P is down zero point four three percent and I'm calm. The Fed pivots like a figure skater, Dale. Gracefully. Beautifully.

5. 

   Dale Bearman · Chief Skeptic & ContributorThe ten-year is at five point three five two, up one point five eight percent. The bond market is shouting and you're humming.

6. 

   Vera Bullock · Co-AnchorBond traders always yell. They're toddlers in suits. Feed them a rate cut and they nap, and then I get my yacht.

7. 

   Dale Bearman · Chief Skeptic & ContributorHere's my analogy. The Fed is a landlord with a leaking roof. Wages cooling is just the tenant moving out. Nobody celebrates that.

8. 

   Vera Bullock · Co-AnchorMy analogy: the economy is a soufflé, and Pantheon just turned the oven down. Slow, golden, glorious. You're the guy who opens the door.

9. 

   Hank Ledger · Lead AnchorBoth analogies involve kitchens and neither of you can cook. Dale, the Nasdaq is down zero point five two. Does that help you?

10. 

    Dale Bearman · Chief Skeptic & ContributorIt helps me sleep, Hank. The VIX is up five percent to fifteen point seven seven. Fear is finally clocking in.

11. 

    Vera Bullock · Co-AnchorFifteen point seven seven is not fear, it's mild indigestion. I've had worse from a gas station burrito, and I still bought the dip.

12. 

    Dale Bearman · Chief Skeptic & ContributorThat explains your portfolio. Thirty years of burrito-based decision making, and the bond market is about to bring the antacids.

13. 

    Hank Ledger · Lead AnchorEnough. These are opinions, and the data says only that stocks are lower and yields are higher. Here is the desk verdict.

14. 

    Hank Ledger · Lead AnchorThe desk rules this a tie, decided by a coin flip. The coin is a bean.

15. 

    Hank Ledger · Lead AnchorVera gets heads, Dale gets tails, and I keep the bean.