Read with the earlier Chicago PMI

Here's the earlier post on Chi-town PMI


Now the Dallas Fed chimes in on what has been the imminent profit margin collapse due to higher prices paid (due to the Fed's ultra low interest rates fueling speculation in every risk asset).

The Dallas Fed, just like the Philly Fed has confirmed again that prices paid (for manufacturing of goods) has again edged up.  The headlines seem good when you just read the headlines, even great, but you can not have input costs continue to rise or else corporate margins are squeezed, Earnings are drained and ultimately companies have to get more efficient which means laying people off and passing along the higher cost of manufacturing goods to the consumer. Put higher unemployment together with inflation in the everyday things we buy and what do you get? Stagflation-stagnation in the economy and inflation in goods and services. This is the insidious little noticed segment of these otherwise, seemingly bullish reports that will creep up and collapse the house of cards. Black Swan? And I'm not talking Oscars.