Liz Ann Sonders, Chief Investment Strategist, Charles Schwab & Co, wrote today “Collapse in shipping rates continues to look unreal … cost to ship 40-foot container from Shanghai to Los Angeles has fallen by 83% from peak, by far largest drop on record (bringing level to lowest since June 2020)”
Yes, Liz Ann, shipping costs from Shanghai to Los Angeles are plunging. But why?
Federal Reserve and Federal government stimultypo has wound down. M2 Money YoY growth is the lowest since 2010 and no, it isn’t the result of Mayor Pete’s magical skills at clearing the logjam at Los Angeles ports. It is the slowing of Federal stimulus (or stimulypto).
Here is Liz Ann Sonders tweet.
Let’s see if 1) The Fed continues to hike and 2) will House Republicans halt the insane spending, particularly since the start of Covid in 2020.
