Wed 30 Aug 2006
This chart jumped onto my leg and started to hump?it like a dog wearing plaid.? In other words,?the pattern I saw just couldn’t be ignored.
Notice the steady undulating rise and fall of this dog…er, line?? Notice how the trough always seems to come around and a little after a recession?? It seems that after it forms, a new high is reached in real median household income before another recession hits.? If this pattern holds on like our canine friend (and I do mean friend), then we should expect to reach another climax (steady!) before any recession enters the picture.? This is a very interesting concept given the inverted yield curve’s call for a high probability downturn.? So for the time being, we just may be able to afford to send our pants to the dry cleaners before having to switch over to hand washing.