Ritholtz grabbed the whole U.S. economy by the horns, musing that its current cycle is “unusual”: He pointed out that inflation is higher than the period’s average – yet job creation is lower. He opines that it’s “too glib to say” that all the jobs being created are merely “burger flippers and Wal-Mart greeters” – but nonetheless, the new jobs generally pay less than employment seekers are hoping.
Offering the “full disclosure” that “we own some of the homebuilders,” Ritholtz points out that consumers have drawn heavily off their home equity – and that source of liquidity is drying up. He says, “I expect softness in homes [sales] to impact other [sectors].” But he maintains that there will be the vaunted “soft landing” in housing, which he praises for having “intrinsic value” – unlike the Internet companies before 2000-2001: “the dot-coms’ only assets were a sock puppet,” Ritholtz jokes.