351–360 of 593 posts
At what point does my savings account at my bank make money?
Earlier quoted context omitted.
In Norway the state is rich. The people not so much. Best way for Norwegians to feel rich is to travel abroad.
Norway's state oil&gas revenue pays and subsidizes pensions, tuition free education and healthcare while actually growing rather than shrinking most of the time. Unless your definition of feeling rich is the government buying you a lambo I'd feel very rich in Norway based on services provided at no or little cost alone.
Yes I know Venezuela is not Norway.
The returns that capital demands (and the government obliges to) are ultimately unsustainable. That's the core problem here. Rising wages? There has been no meaningful real increase in wages in 40 years despite a massive increase in productivity. Profits keep going up and up. The expectations for profits keep going up. The problem here is that the people who make companies possible don't get to share in the proceeds…
>What we're allowing to happen here through investors buying up housing stock (and jacking up the prices), second homes, AirBnB and so on has reached the point of being a human rights violation IMHO. There are plenty of affordable places to live. People just don't want to move there. Buying a house in a hip U.S. city/suburb isn't a human right.
There’s a growing attitude that if they’re already paying exorbitant amounts for housing and have a large amount of student debt, why not go all-in and buy a house that’s an extra $100-500K more than what they could find in a cheaper location?
There’s also a lot of FOMO from people who watched their friends over-extend themselves on expensive home purchases and then be rewarded heavily for it by rising home values. I’ve talked to a lot of younger people who have feel a severe sense of urgency to buy the most expensive house they can afford before they miss out on future gains or get priced out of the market entirely.
If you think house prices only go up rapidly and your entire adult life has confirmed that idea, you also wouldn’t be interested in moving to a boring location and buying a cheap house. You’d want to move somewhere exciting and get the most expensive house the bank will let you buy.
The returns that capital demands (and the government obliges to) are ultimately unsustainable. That's the core problem here. Rising wages? There has been no meaningful real increase in wages in 40 years despite a massive increase in productivity. Profits keep going up and up. The expectations for profits keep going up. The problem here is that the people who make companies possible don't get to share in the proceeds…
If you're telling me that the AVERAGE person in the West is worse off now than in 1925 or even 1965, you're delusional.
MAYBE the average white male. But even that I am highly skeptical...
Was life better in 1995 or 2005 or 2012? I dunno. There's ups and downs. The trend line has been obvious.
The returns that capital demands (and the government obliges to) are ultimately unsustainable. That's the core problem here. Rising wages? There has been no meaningful real increase in wages in 40 years despite a massive increase in productivity. Profits keep going up and up. The expectations for profits keep going up. The problem here is that the people who make companies possible don't get to share in the proceeds…
I think wages only can go up with abundant energy. This time around interest is lagging inflation by atleast 1 year. In the 70s the rate and salaries increased BEFORE the inflation occured = inflation was rate/salary driven and because debt level was lower. Today salaries are not increasing 10% per year for most people. So I actually think the interest rate hike increases the scarcity inflation eventually since energ…
How many businesses are equity funded in the first place?
We did not have capital to start our business.
Most small businesses starting from zero can't get capital in the first place (excluding personal funds, family funds which aren't usually charging interest tied to the Fed benchmark)
Those tech companies that do get tons of capital despite negative value are somewhat unique and for sure interest rates will eventually affect that. Valuations are already starting to come back to at least the Stratosphere ;)
At what point does my savings account at my bank make money?
The returns that capital demands (and the government obliges to) are ultimately unsustainable. That's the core problem here. Rising wages? There has been no meaningful real increase in wages in 40 years despite a massive increase in productivity. Profits keep going up and up. The expectations for profits keep going up. The problem here is that the people who make companies possible don't get to share in the proceeds…
I think wages only can go up with abundant energy. This time around interest is lagging inflation by atleast 1 year. In the 70s the rate and salaries increased BEFORE the inflation occured = inflation was rate/salary driven and because debt level was lower. Today salaries are not increasing 10% per year for most people. So I actually think the interest rate hike increases the scarcity inflation eventually since energ…
You mean wind, solar and nuclear power? I mean they are capital intensive because the operational costs are dwarfed by the initial investment. With coal and gas, the fuel is an ongoing and high expense compared to the power plant itself.
Earlier quoted context omitted.
So the other becomes raising taxes right? Or MMT?
I don't follow your parallelism. But yeah, you'd probably have to raise taxes to climb out of the hole we've dug. Or you could go for MMT (sticking your head in the hole.)
The returns that capital demands (and the government obliges to) are ultimately unsustainable. That's the core problem here. Rising wages? There has been no meaningful real increase in wages in 40 years despite a massive increase in productivity. Profits keep going up and up. The expectations for profits keep going up. The problem here is that the people who make companies possible don't get to share in the proceeds…
> Rising wages? There has been no meaningful real increase in wages in 40 years despite a massive increase in productivity. If you're telling me that the AVERAGE person in the West is worse off now than in 1925 or even 1965, you're delusional. MAYBE the average white male. But even that I am highly skeptical... Was life better in 1995 or 2005 or 2012? I dunno. There's ups and downs. The trend line has been obvious.