11–20 of 239 posts
This was expected. I wonder though what happens now, is hyperinflation a real possibility. Is it really sensible to expect consistent positive returns from overall stock market this decade unless doing some active investments ?
Cant imagine real estate not taking a hit when yields go up...
Cant imagine real estate not taking a hit when yields go up...
Which just goes to show, if WSJ or Bloomberg say something is bad, it may not actually be bad for you. Let's just hope the pressure stays up so wages keep on increasing.
EDIT:
I'd like to add, wage growth is outpacing inflation[1]. So those middle class family's with mortgages, lower middle class folks still with student debt, poor folks with credit card debt. This is a GOOD THING.
If you want to say wealthy people have more debts, sure in dollar amounts. But I bet dollars to donuts they have way more assets in stock than in their million dollar home mortgages or w/e.
And probably soon to 90y high. Most workers getting a significant bump to keep them at work, worldwide logistical mess, one must be naive to think these and everything else won't have further repercutions.
So far we've seen crazy asset inflation (weird the market is up 30% from pre-covid levels). But now we're seeing consumer price inflation. I'm afraid it's not like normal times where you can just "slow down" the economy by tweaking interest rates. You will need to do drastic measures to sop up the trillions in newly generated dollars.
Cant imagine real estate not taking a hit when yields go up...
We are in a tough spot. The Fed has held interest rates at 0 (negative, real terms) which makes all cash flows effectively infinite net present value. When rates are this low, small perturbations can be catastrophic for the NPV of, well, pretty much everything. I expect a lot of chaos with the economy whipping between inflation and deflation over the next few years as the Fed tries to ride the tiger. It's a good reas…
It feels like their strategy is to avoid making a choice and letting the bubble unwind as slowly as possible to avoid political fallout. Unfortunately, we learned as kids that ripping off a bandaid faster is usually best, so this might prolong pain for a while.
And probably soon to 90y high. Most workers getting a significant bump to keep them at work, worldwide logistical mess, one must be naive to think these and everything else won't have further repercutions.
It's transitory, you right wing nut!!!