Bill Sullivan Pattern Quotations

Even though the rising pattern in borrowing costs is a form of restraint, it is being offset by a surge in equity wealth as the stock market records consistent gains.

In our judgment, this pattern could be another exhibition of household balance sheet stress, as the shift would seem to suggest that a relatively small rise in 30-year rates apparently excludes a significant number of prospective home buyers from qualifying for mortgage credit.

From that perspective alone, the current pattern of money supply weakness deserves scrutiny, particularly if the erosion persists into the new year. Essentially, the longer the pattern lasts, the greater the economic impact of this erosion.