[late]

The head of the Atlanta Fed floated a 100 basis point increase (1%) as a possibility. 75 basis points has also been mentioned.

The problem, as I see it, is that there are signs the economy is cooling already.

Rich guys like Summers can deal with that, even make money. But you and me, it's just more money out of our pocket, with the very real possibility it can slow the economy more than was intended.

Because the president always gets blamed when there's trouble, Biden has backed away, and is letting the Fed take point. This is pretty much what we always do, and it rarely works out well. Been a long time since Volcker..

[Rancid]

I'd like to see a break down of where the inflation is exactly. How much of this inflation is housing/rent. How much is food. How much is medical. How much is education expenses. How much is consumer goods? etc. etc.

I'm sure they are all going up, but some are going up faster than others. I suspect, the housing/rent is the highest given that there is simply too much money sloshing around in that industry.

[wat0n]

The head of the Atlanta Fed floated a 100 basis point increase (1%) as a possibility. 75 basis points has also been mentioned.

The problem, as I see it, is that there are signs the economy is cooling already.

Rich guys like Summers can deal with that, even make money. But you and me, it's just more money out of our pocket, with the very real possibility it can slow the economy more than was intended.

Because the president always gets blamed when there's trouble, Biden has backed away, and is letting the Fed take point. This is pretty much what we always do, and it rarely works out well. Been a long time since Volcker..

The disease is persistent inflation. The Fed will do whatever it takes to avoid this type of thing.

[late]

I'd like to see a break down of where the inflation is exactly. How much of this inflation is housing/rent. How much is food. How much is medical. How much is education expenses. How much is consumer goods? etc. etc.

I'm sure they are all going up, but some are going up faster than others. I suspect, the housing/rent is the highest given that there is simply too much money sloshing around in that industry.

"Good news — mostly. When the pandemic paralyzed the economy in the spring of 2020 and lockdowns kicked in, businesses closed or cut hours and consumers stayed home as a health precaution, employers slashed a breathtaking 22 million jobs. Economic output plunged at a record-shattering 31 percent annual rate in 2020’s April-June quarter.

Everyone braced for more misery. Companies cut investment and postponed restocking.

But instead of sinking into a prolonged downturn, the economy staged an unexpectedly rousing recovery, fueled by vast infusions of government aid and emergency intervention by the Fed, which slashed rates among other things.

Suddenly, businesses had to scramble to meet demand. They couldn’t hire fast enough to fill job openings or buy enough supplies to meet customer orders. As business roared back, ports and freight yards couldn’t handle the traffic. Global supply chains seized up.

With demand up and supplies down, costs jumped. And companies found that they could pass along those higher costs in the form of higher prices to consumers, many of whom had managed to pile up savings during the pandemic.

Prices are rising just about everywhere in the world, in part a consequence of Russia’s invasion of Ukraine, which has elevated energy and food prices, and in part because of the supply chain bottlenecks that have driven U.S. prices up.

Consumers have endured the pain in everyday routines. Unleaded gasoline is up 61 percent, in the past year. Men’s suits, jackets and coats, 25 percent, Airline tickets, 34 percent. Eggs 33 percent. Breakfast sausage, 14 percent."
https://www.pbs.org/newshour/economy/wh ... t-may-ease

One of the things I keep an eye on is video cards. Usually, after 2 or 3 years, a video card is an antique. The price of them just went insane. I like the Nvidia 70 series. I have the 1070, that was generations ago. The 3070 shot up so that the min price was a grand. They are now $600 to $700. If you're wondering if that meant the video card companies were price gouging, you win the golden calf, bubbala...

Construction costs have gone down some, and real estate could get a lot lower if I'm right that it was a bubble driven up by speculators with more money than sense.

Bottom line, it's all over the map. It's a shame regulators are a pale shadow of what they once were.

[Rancid]

"Good news — mostly. When the pandemic paralyzed the economy in the spring of 2020 and lockdowns kicked in, businesses closed or cut hours and consumers stayed home as a health precaution, employers slashed a breathtaking 22 million jobs. Economic output plunged at a record-shattering 31 percent annual rate in 2020’s April-June quarter.

Everyone braced for more misery. Companies cut investment and postponed restocking.

But instead of sinking into a prolonged downturn, the economy staged an unexpectedly rousing recovery, fueled by vast infusions of government aid and emergency intervention by the Fed, which slashed rates among other things.

Suddenly, businesses had to scramble to meet demand. They couldn’t hire fast enough to fill job openings or buy enough supplies to meet customer orders. As business roared back, ports and freight yards couldn’t handle the traffic. Global supply chains seized up.

With demand up and supplies down, costs jumped. And companies found that they could pass along those higher costs in the form of higher prices to consumers, many of whom had managed to pile up savings during the pandemic.

Prices are rising just about everywhere in the world, in part a consequence of Russia’s invasion of Ukraine, which has elevated energy and food prices, and in part because of the supply chain bottlenecks that have driven U.S. prices up.

Consumers have endured the pain in everyday routines. Unleaded gasoline is up 61 percent, in the past year. Men’s suits, jackets and coats, 25 percent, Airline tickets, 34 percent. Eggs 33 percent. Breakfast sausage, 14 percent."
https://www.pbs.org/newshour/economy/wh ... t-may-ease

One of the things I keep an eye on is video cards. Usually, after 2 or 3 years, a video card is an antique. The price of them just went insane. I like the Nvidia 70 series. I have the 1070, that was generations ago. The 3070 shot up so that the min price was a grand. They are now $600 to $700. If you're wondering if that meant the video card companies were price gouging, you win the golden calf, bubbala...

Construction costs have gone down some, and real estate could get a lot lower if I'm right that it was a bubble driven up by speculators with more money than sense.

Bottom line, it's all over the map. It's a shame regulators are a pale shadow of what they once were.

If raising interest rates isn't a good option to you, what is?

[late]

If raising interest rates isn't a good option to you, what is?

If it was me, I'd be doing 25 point hikes.

[Rancid]

If it was me, I'd be doing 25 point hikes.

[BlutoSays]

If it was me, I'd be doing 25 point hikes.

Don't worry. Soft landing. Those CPI number are just fantasy. Nothing to see here.

[late]

The last hike was 50 basis points, so why the eek?

[Potemkin]

I hope you haven’t borrowed lots of money recently, @Rancid. In fact, if you have savings you should be like instead of like . Lol.

[Rancid]

The last hike was 50 basis points, so why the eek?

My bad, I thought you meant 25% not .25%.

I hope you haven’t borrowed lots of money recently, @Rancid. In fact, if you have savings you should be like instead of like . Lol.

I have not borrowed lots of money. Or rather, I did for a house 10 years ago, but it's mostly paid off now. In fact, I finish paying off my mortgage next month. I could have done it this month, but I wanted to wait until I was done with some travel before putting the final nail on that bitch.

I'm sitting on zero debt at this point, good job, and no need to take out another loan for anything. As I did in 2008, it's time to buy buy buy on the way to the bottom. Time to become a robber baron.

[Potemkin]

My bad, I thought you meant 25% not .25%.



I have not borrowed lots of money. Or rather, I did for a house 10 years ago, but it's mostly paid off now. In fact, I finish paying off my mortgage next month. I could have done it this month, but I wanted to wait until I was done with some travel before putting the final nail on that bitch.

I'm sitting on zero debt at this point, good job, and no need to take out another loan for anything. As I did in 2008, it's time to buy buy buy on the way to the bottom. Time to become a robber baron.

Then pray for high interest rates, @Rancid. The higher the better! 25%! 30%! 35%! Mwuhahahahaha!!!

[Rancid]

Then pray for high interest rates, @Rancid. The higher the better! 25%! 30%! 35%! Mwuhahahahaha!!!

EAT THE POOR!
FEED THE RICH!

Question, why do you encourage this being a commie and all? Do you have an accelerationist outlook on this?

[wat0n]

Most of my debt is in CLP and I earn USD. A strong dollar is good news to me

[Rancid]

Most of my debt is in CLP and I earn USD. A strong dollar is good news to me

Sounds like we're all set to get rich then..... who's getting poorer then?

[wat0n]

People who don't earn USD

[Potemkin]

EAT THE POOR!
FEED THE RICH!

Question, why do you encourage this being a commie and all? Do you have an accelerationist outlook on this?

Partly I’m an accelerationist - “the worse the better” - and partly I’m just trolling the shit out of you. Lol.

[ckaihatsu]

Partly I’m an accelerationist - “the worse the better” - and partly I’m just trolling the shit out of you. Lol.

I guess I'm more of an 'apocalypticist' by that yardstick, because there's *no way* the economy will be able to survive this raised-interest-rate clampdown. Already the markets have taken a hard hit this year, and without the usual free government liquidity, for zombie companies and whatever, the momentum / musical-chairs will *stop*, and then we're back at 2008-2009, at *best*. Print this out and put it in the time capsule. (grin)

[ckaihatsu]

Um....


Berlin builds 'huge thermos' boiler to heat homes with renewable energy



https://www.thenationalnews.com/world/e ... le-energy/

[MadMonk]

We should have taken the hit earlier. Everyone saw it coming. Stocks and assets running wild during a global pandemic with varied lockdowns and shortages? Aviation, tourism and service industries in the toilet?

Addiction to cheap money and desperate dreams of never-ending growth. If this gets bad enough, we might stand a chance of saving the global environment at least.