Kolek planning to go pro
I think the stimulus added to inflation but I am firmly believe that bloated stock prices and home prices was a big factor. As long as housing prices are at crazy levels I think lowering inflation will be tough. Folks getting a sizable home equity loan due to price increase in their home caused a spending frenzy, IMO. In the past few weeks I was at a home that I would not buy for $400k and they just completed a $100k makeover and did not think twice about it. I do not believe the couple is heavy earners, but I could be wrong, and I was floored at how little they thought about spending the money. Again, I think there has been a great deal of reckless decisions based off folks believing they are wealthier than they really are.
Inflation has moderated. Inflation has stabilized. It just didn't lower enough relative to unrealistic expectations. Yet again we find ourselves in a self-propelled mouth breather spiral. It's hysterical this crap still happens after decades of walking the same path littered with dullards.
It is transitory but yes it will be rough for a while. Economy fades and economy surges, just like it always has.
LennyThere were a lot of smart guys on the right side of the number today. The number of shorts in the market is at a crazy level, not just the usual suspects. Anyone that thinks the number was good day, is not very informed. Knock on wood, we released over 8 million barrels of reserves last week to help on gas prices.
Empires also crumble from within. I think "Economy fade and economy surges", whatever you mean by that, isn't a particularly strong analysis.
TAMUI do know, Newsie is right on you knowing ball.
Are you implying that this is going to be the thing that kills the USA? Because I'll take you up on that bet
No, 'm not saying that. I'm just an alarmist and not happy about a lot of bad decisions.
TAMUI do not think this economic downturn is going to structurally going to change America, but I think a lot people that thought they were stock market and real estate experts are going to feel a lot of pain. One thing I learned 50 years ago from my Dad, you lose money twice as fast you make it in crazy times. As Lenny stated, there was blood on the tracks today and I think there are a lot of traders out there that think they will outsmart the market.
I think a lot of people on both sides of the aisle did a pretty good job with imperfect information during a global pandemic. And a lot of this has nothing to do with decisions made here.
I'm not sure what your point has to do with inflation today.
Well what bad decisions did people make that you are referring to?
Inflation always takes awhile to be brought to heel. Before this becomes a political discussion, I'll offer this ...Maybe the best investment out there is the Series I Savings Bond. "I Bonds" are indexed to inflation, and right now their annual rate is 9.62%. It's incredible to get almost 10% interest on anything, let alone something that is 100% safe.https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htmFine print:++ Each individual can only buy $10K worth per year. A couple can buy $20K. They also can buy $10K worth for each kid, although the money technically would belong to the kid.++ Each I Bond must be held for at least a year. If cashed in after 1 year but before 5 years, the penalty is the last 3 months' interest -- but even cashed in after a year it currently would produce an effective rate of 7%+. From 5 years on, there is no penalty.++ Rates can and usually do change every 6 months, in May and November. We don't know what the next rate will be yet ... but if it's lower it won't be by much. So it's not a place where one can park hundreds of thousands of dollars, but anybody with $10K ($20K for couples) sitting around in checking accounts and who doesn't need the $$$ for at least a year ... it's a complete no-brainer to max out the annual I Bond account.