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The Everything Bubble [infographic]

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Re: The Everything Bubble [infographic]

#61

Post by geon »

Pxtl wrote: post #43
twobyfour wrote: post #35

The reason? Too much capital, not enough growth to invest in because demand isn't growing. Demand isn't growing because 60% of the population is barely scraping by. How do you increase demand? Roll back the tax cuts to the wealthy who have nowhere to put that money except into speculation and bubbles. Redistribute it back to the working class in the form of tax cuts, credits, higher minimum wage, and social programs.…

The problem is that conservatives find working-class-specific programs offensive, and liberals construct elaborate social programs where a hefty chunk of cash vanishes into overhead. Just give the money back to the working poor - if the problem is a shortage of money in the economy creating demand, then put the money directly into the economy by the most direct method possible.

coughUBI

Re: The Everything Bubble [infographic]

#62

Post by ianleeclark »

otakucode wrote: post #40
firebird84 wrote: post #9

Meh to almost everything here except maybe housing. Corporate debt is high because DEBT IS STILL CHEAP (fed is changing that). Of course they're going to borrow fuckloads of money, it's practically free by some measures! The indexing "bubble" is actually a correction for a lack of value from active funds. I don't expect the correction to be corrected. The cryptocurrency bubble is tiny. 65 billion? That's a rounding e…

The housing bit interests me but I can't take it seriously when they're pointing at the single most irrationally priced area in the nation to make the overall situation look similar. Yes, if you want to live in SF you can expect to pay utterly idiotic amounts. But that's pretty much isolated to SF.

The housing index confused me too, as they chose a year after a huge collapse in the housing market as a comparative point. I'm not saying US homes aren't overvalued--or that they are--but it's misrepresentative of the state of the market: https://fred.stlouisfed.org/series/CSUSHPINSA

Re: The Everything Bubble [infographic]

#63

Post by tootie »

TACIXAT wrote: post #27
tootie wrote: post #2

This is extremely unconvincing.

I don't know, these big numbers completely out of context are pretty intimidating. It feels a lot like when people talk about the national debt without putting it into context of GDP.

There's been a 211% increase in statistics being posted out of context.

Re: The Everything Bubble [infographic]

#64

Post by bubbleRefuge »

saint_fiasco wrote: post #44
twobyfour wrote: post #35

The reason? Too much capital, not enough growth to invest in because demand isn't growing. Demand isn't growing because 60% of the population is barely scraping by. How do you increase demand? Roll back the tax cuts to the wealthy who have nowhere to put that money except into speculation and bubbles. Redistribute it back to the working class in the form of tax cuts, credits, higher minimum wage, and social programs.…

Among the things that people can't afford and really need, the most common ones are healthcare and housing. The problem with giving people more money to stimulate demand for those things is that it only solves half of the problem. Healthcare is limited by the supply of doctors so no matter how much government subsidizes it, the amount of people who can be seen by the constant number of doctors will be the same. In pr…

Gr8 points. The healthcare problem is a disconnect in the laws of supply and demand. In economic theory prices are determined by the intersection of supply and demand curves. So when demand shifts up, more supply comes online to meet demand and bring prices back down. In health care this is not happening. Bear in mind that the first and one of the most powerfull lobbying organizations is the AMA.

Re: The Everything Bubble [infographic]

#65

Post by WhoIsSatoshi »

Nokinside wrote: post #56
saint_fiasco wrote: post #44

Earlier quoted context omitted.

Among the things that people can't afford and really need, the most common ones are healthcare and housing. The problem with giving people more money to stimulate demand for those things is that it only solves half of the problem. Healthcare is limited by the supply of doctors so no matter how much government subsidizes it, the amount of people who can be seen by the constant number of doctors will be the same. In pr…

US spends significantly more money per capita to healthcare than other countries. US healthcare problem has nothing to do with lack of resources (human or financial resources). US could save money in healthcare while improving it by reorganizing the healthcare. Even wealthy people get worse treatment than they could because the way incentives work. https://www.reddit.com/r/medicine/comments/6addvo/the_wealth...

healthcare sucks a lot more out of the customer in the US than elsewhere in the world, so the fact that the US spends more is combined with healthcare patients spending more money per capita in the US. Having experienced both, I can tell you that I am terrified of having a motorcycle accident in the US. Or breaking a leg.

Re: The Everything Bubble [infographic]

#66

Post by madamelic »

TACIXAT wrote: post #27
tootie wrote: post #2

This is extremely unconvincing.

I don't know, these big numbers completely out of context are pretty intimidating. It feels a lot like when people talk about the national debt without putting it into context of GDP.

The housing index went from 53 to 453. Wooaaaaah.

Totally on-board. A lot of these numbers are really silly. Comparing the # of UN recognized currencies to # of cryptocurrencies is like comparing the number of kindergarteners to the number of world-renowned physicists; it doesn't make sense.

I could spin up a cryptocurrency in about 10 minutes, I can't do that with a UN-recognized currency.

Re: The Everything Bubble [infographic]

#67

Post by Nokinside »

mabbo wrote: post #42
otakucode wrote: post #40

Earlier quoted context omitted.

The housing bit interests me but I can't take it seriously when they're pointing at the single most irrationally priced area in the nation to make the overall situation look similar. Yes, if you want to live in SF you can expect to pay utterly idiotic amounts. But that's pretty much isolated to SF.

The value of my condo has gone up by over 60% in two years. Canada, Toronto especially, is in for some rough times in this housing bubble. The real issue is that the big cities like Toronto are the economic centers of the region. When they pop, everything else will be in trouble too.

The value of your condo going up gives very limited information if there is bubble or not.

If you want to figure out what the correct price level is, find statistics that compares price of housing to median income in your area over time. That's the single most important metric determining the correct property valuations.

Prices can go up as long as incomes go up. Major cities have higher productivity and prices can go up until they start to eat too much from the income. In declining areas prices can go down and houses are still overvalued.

Re: The Everything Bubble [infographic]

#69

Post by bubbleRefuge »

autokad wrote: post #49
twobyfour wrote: post #35

The reason? Too much capital, not enough growth to invest in because demand isn't growing. Demand isn't growing because 60% of the population is barely scraping by. How do you increase demand? Roll back the tax cuts to the wealthy who have nowhere to put that money except into speculation and bubbles. Redistribute it back to the working class in the form of tax cuts, credits, higher minimum wage, and social programs.…

QE3 inflated the things in question, not 'tax cuts to the wealthy'. in fact, taxes have gone up on the richest and that bubble continued to inflate. if you want to make it about politics, (and if this is a bubble of bubbles), it was done under the fed under a liberal president - who claimed credit for its 'success'. when you put funny money in the market, tech booms, paper assets boom and investment in hard industry…

This is factually incorrect. No funny money is put in by QE. QE is an asset swap, treasuries for reserves, and it nets to zero. The goal of QE is to lower the price of money in hopes that people will borrow more but they are not. All of the lending/borrowing aggregates are going sideways and down. The reason that the stock market is up is the expectation that QE will someday work to bring get the economy growing faster, but it hasn't happened in 10 years. The only thing that will get this economy ( and the rest of the world) back to where it needs to be is massive deficit spending ala world war II. You need to physically put money into pockets. Tax cuts on middle class and Jobs( via large scale infrastructure spending) will do that.

Re: The Everything Bubble [infographic]

#70

Post by [deleted] »

twobyfour wrote: post #35

The reason? Too much capital, not enough growth to invest in because demand isn't growing. Demand isn't growing because 60% of the population is barely scraping by. How do you increase demand? Roll back the tax cuts to the wealthy who have nowhere to put that money except into speculation and bubbles. Redistribute it back to the working class in the form of tax cuts, credits, higher minimum wage, and social programs.…

[deleted]
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