Let them eat solar panels!

Gas is (temporarily) cheaper, but for all the wrong reasons. Time to start hoarding chocolate and lipstick.

Random Walk braces for a self-inflicted hard landing, while digging for some doom-time winners, like . . . lipstick?

Things we think

Let them eat solar panels!

You may have noticed that gas (and oil) prices have cooled recently, but my guess is not for long. Again, it’s a basic story of supply and demand, and while demand has returned to normal, supply has not.

By raising rates, the Fed can put a damper on demand by decreasing productivity—who needs gas to drive when you’re unemployed—but (a) decreased productivity is a bad thing for all kinds of reasons; and (b) it will have to decrease a lot—more than anyone can stomach—to make up for the “structural shortfall” in energy. If the Fed plays its cards right, we’re gonna have a recession and still have an energy shortage at the same time. Great.

Energy is cheaper and that’s bad news

Gas prices have certainly come down a bit:

Oil has as well: