U.S. interest rates have soared everywhere but savings accounts

Post by MisterMower » Mon, Apr 25, 2022, 3:58 AM UTC

busterarm wrote: post #211

throw0101a wrote: post #68

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Have a diversified portfolio. Rational Reminder went over the data in "The Ultimate Inflation Hedge": > Is it possible to hedge your investments against different levels of inflation? This is the question we ask in today's episode, as we run through a variety of different investment approaches and commodities. While the answer may not come as a huge surprise, it is definitely worth the walk-through and getting to gri…

Also invest where you know/have an edge. I've made judicious purchases in sealed Magic: The Gathering product. In just under 3 years, my initial 6-digit investment is up over 200%. Some purchases are wildly up and nothing so far has been a losing bet. Other areas in collectibles I am also doing really well, like statues, classic cars, etc. Obviously a limiting factor is storage space. I've lucked out due to some blac…

Post by naruvimama » Mon, Apr 25, 2022, 4:14 AM UTC

chii wrote: post #311

naruvimama wrote: post #181

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Inflation is high because of supply shortages and lower production, increasing rates would mean increasing the cost of setting up new supplies or production lines. Manipulating interest rates works when under otherwise normal condition the government wants to prevent overheating economy or to provide stimulus during a down cycle. It is not immediately clear if the rate increases is going to help increase production o…

> Manipulating interest rates works when under otherwise normal condition back in the oil crisis of the 70's, the inflation was high because oil embargo made everything that need oil (which was everything) more expensive. Couldn't you make the same argument back then, that increasing interest rates isn't going to end the embargo and lower inflation? And yet, the then Fed chair did increase interest rate to combat inf…

Post by TimJRobinson » Mon, Apr 25, 2022, 6:51 AM UTC

mrep wrote: post #324

TimJRobinson wrote: post #310

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You can fairly easily get a safe 10% (20% in bullish times) return on USD in crypto markets. Still high because most people haven't figured it out yet and there isn't good enough regulation for institutions.

"safe" https://rekt.news/leaderboard/

Post by khaki54 » Mon, Apr 25, 2022, 11:35 AM UTC

jVinc wrote: post #170

clairity wrote: post #129

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> "...there is no incentive for banks to increase interest rates on accounts as they are already sitting on too much cash." and folks wonder why banks are so strictly regulated... no, banks are never sitting on too much cash unless they've made a marketing and/or an operational error. most banks are highly levered, meaning they're lending out, say, 10× the cash they hold, so they never "have too much cash on hand". q…

> most banks are highly levered, meaning they're lending out, say, 10× the cash they hold, so they never "have too much cash on hand". Reconsider what your stating here. If I have 10$, and I can therefore lend out 100$, but I only have requests to borrow 50$, then I have "too much cash". If I however had requests to borrow 200$, the I would need to find another 10$, for instance by promising someone a higher interest…

Post by TimJRobinson » Mon, Apr 25, 2022, 12:02 PM UTC

mrep wrote: post #348

TimJRobinson wrote: post #345

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Do you use a bank? Did you know the bank of Bangladesh was robbed for hundreds of millions? Banking sure sounds risky, better not use them. That's how your response comes off to people that actually understand the space. Less than 0.1% of the value in crypto has been exploited and it's always new startups. But sure dig your head in the sand and avoid the best way to hedge against inflation because you base your risk…

Well I don't live in Bangladesh so I'm not too worried.