The End Of Free Money At The Federal Reserve
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- Опубліковано 10 тра 2024
- The U.S. is entering a new economic era. It began with an interest rate tightening cycle coming out of the Federal Reserve, with decisions that have reshaped personal finance in America. Some savings accounts can now return meaningful interest for the first time in years. It has also led to a Wall Street reshuffling, and a wave of corporate bankruptcies as some bad bets turn sour. With these free money years coming to a close, we examine how the Fed's decision-making has affected the economy.
Chapters:
00:00 - Introduction
01:20 - Jobs, wealth and inequality
03:55 - Zero interest rates
06:02 - Wall Street
08:02 - Risk-taking
09:40 - Unconventional policies
Producer: Carlos Waters
Editor: Nora Rappaport
Graphics: Alex Wood, Andrea Schmitz
Supervising Producer: Lindsey Jacobson
Additional Camera: Jeff Morganteen, Bradley Howard
Additional Footage: European Central Bank, Getty Images
Additional Sources: Bain and Company, Bank for International Settlements, Bureau of Labor Statistics, Capital One, Federal Deposit Insurance Corporation, Federal Reserve Bank of Chicago, Federal Reserve Bank of St. Louis, Mercatus Center at George Mason University, National Bureau of Economic Research, Organization for Economic Co-operation and Development, University of Pennsylvania
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The End Of Free Money At The Federal Reserve
The system is failing as a result of both government and federal policy. In the next days, the banking crisis would have to be epic and gigantic for the FED to decide not to raise interest rates. This won't happen; an increase and a crash are coming. There will be more negative portfolios this 2nd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder
Very true, you can be passively involved in the markts and still amass wealth-gains using an investment advisor. I first dabbled in stocks late 2019, just before the pandemic, and that same year gained over 150% with no prior investing experience, basically all I was doing was following directions of my advisor. We are working on a retirement ballpark of $3m and I’m certain my goal isn’t farfetched after subsequent investments and tremendous returns so far.
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
Carol Vivian Constable is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
Fed reserve and the treasury is not bothered about stock capital market. They are more concerned about the treasury bond market. They fear the bond market may become dysfunctional and illiquid. Bond yields are one of the important parameter that influences stock market. All stock pundits fail to mention how the bond yields influence stock market. My main concern now is how we are going to achieve all of that given that the market has been a mess for most of the year. I already lost $23,000
Me too. I want to build wealth through taking the time and effort to consistently invest but i lack good knowledge and strategy to outperform the market, yielding good returns. I have $60k i want to transfer into an s&s isa but its hard to bite the bullet and do it.
Avoid too-good-to-be-true scam schemes. Seek advice from a fiduciary counselor they provide personalized advice to individuals based on their risk appetite, placing them among the best of the best. There are bad ones, but some with good track records can be very good
I agree. Based on firsthand encounter with a fiduciary counselor Deborah Jean Dykstra, i have $385k in a well diversified portfolio which has grown by 3x with compounding, venturing doesn’t necessarily boil down to money but you also have to be informed, be patient and back it up with good hands
@@Christine-ce4xo I just googled her and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
The illusion that bonds are worth anything more than the paper they're printed on.
it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
A lot of folks have been going on about the bull rally and said stocks that would be experiencing significant growth, any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumours and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of a planner, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.
@@AnkurYo True, we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides yo help?
Having a fduciary is essential for proper portfolio diversification to make gains. My advisor is LOREN LENA WALKER who is easily searchable and has extensive knowledge of the financial markets.
@@AnkurYo Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market precisely when the news is most negative and investor sentiment reaches its lowest point
Instead of growth stocks, where valuations were predicated on future prospective earnings, you should consult a financial broker to help you diversify your portfolios by including commodities, inflation-indexed bonds, and stocks of companies with stable cash flows.
Indeed, at first I wasn't too pleased with my gains compared to my previous performances, but I was doing so poorly, I thought I needed to diversify into better assets, so I got in touch with a portfolio-advisor. That same year, I pulled a net gain of $550k, which is about 7 times what I typically average on my own.
I did enroll in a handful of trading classes, but they didn't help much. I've been advised to seek the advice of a competent financial counselor; how did you go about doing so?
You might research potential candidates and keep a look out for those with clever methods that can help you grow your portfolio gradually and steadily. Carol Pasol Lewis is my FA. She is knowledgeable and accommodating to your needs. establish her identity
Thank you, I studied Carol Pasol Lewis' qualifications on her website and they are excellent. I found her on Google. I sent her an email, so hopefully she would welcome more applicants.
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor.
Not at all, having monitor edge my portfolio performance which has made a jaw dropping $473k from just the past two quarters alone, I have learned why experienced traders make enormous returns from the seemingly unknown market. I must say it's the boldest decision I've taken since recently.
@@lowcostfresh2266 Please pardon me, who guides you on the process of it all?
@@lowcostfresh2266Please pardon me, who guides you on the process of it all?
The adviser I'm in touch with is Laurel Dell Sroufe. You can use something else, for me her strategy works hence my result. she provides entry and exit point for the securities I focus on.
Every family has that one person who will break the family's financial struggle, I hope you become the one 😊
Be a goal achiever
Always aim high so your dreams can come to reality
Use your job to finance your goals✅
You can't be an employee forever!
Consistent efforts in trading/investment will put you in a position where success will find you
Everyone needs more than their salary to be financially stable. The best thing to do with your money is to invest it rightly because money left for savings always ends up used without returns
Having a job doesn't mean security rather having different investments is the real deal
I'm looking for something to venture into on a short term basis, I have about $6k sitting in my savings
@@popsarah7805I'm enjoying working under a platform that brings good returns all in crypto currency with the help of Catherine
The FED knows. They aren't committed to attacking inflation. They are going to continue to inflate, stocks and commodities will continue to go up with everything else. You can't just sit on cash waiting for a crash, get your money working for you, start buying in slowly and then gradually increase the pace of buying as the prices continue to drop.
It's really hard to beat the market as a mere investor. It's just better if you invest with the help of a professional understands the market dynamics better.
@@AlexanderWebber How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
@@AlexanderWebber Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
YES! absolutely correct, inflation continues to skyrocket regardless of interest rates!
All they're doing is making more money for themselves, they collect more interest on the inflation they create.
The fed is simply increasing their "profits" (but let's be honest; it's all "profit" to them, it's free money...)
@@youreabigguyoh here the trolls go again
The rising interest rate can surely control inflation, but won't prevent erosion of the eroding purchasing power of the US dollar. I have learnt my lesson this time. The banks can't be making money off my money, while inflation eats into it. I have set aside 650k to invest in the stock market now, since that keeps up with inflation, but I don't know how to get started.
Yes, truly, investing in the market, even if it's just the S&P 500, can keep up with inflation, because the growth rate of stocks will always exceed the inflation rate. But if you don't have the courage, you could just invest with a financial advisor, which even has greater return on investments, while securing your investment against losses.
Keeping money in the bank is like paying banks and the Govemment. Here's how it works: The bank gives out your money as loan, and charge interest obviously higher than inflation rate, and then give you, the depositor, interest lower than inflation rate. That means net loss for you. That is why I prefer to invest, and on average, my advisor makes returns that always beats inflation!
@@PhilipDunk I've been skeptical about the banks for a long time, If it's okay, can I know who your advisor is, because I need some recommendations?
There’re a lot of financial coaches but “ Vivian Carol Gioia” has shown credibility and professionalism over the years. That’s why I can boldly recommend her
I searched her up online and checked out her credentials since I was so intrigued. Top-notch! I emailed her to inquire about accepting new clients.
As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.
Personally, I would say have a mentor. Not sure where you will get an experienced one, but if your knowledge of the market is limited, it seems like a good bet.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one.
"Carol Pasol Lewis" is the advisor that oversees my portfolio. She's been able to gain some reputation and online recognition with over 3 decades in service, so it shouldn't be a hassle to find basic info.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
This perhaps is the largest transfer of wealth. It's quite simple why rates are climbing with rising imports and falling exports, meanwhile the FED is to lower home prices. Something will eventually break if they keep the quantitative tightening and higher interest rates.
@@lancycamara Ive seen commentary about advisers but not one that looks this phenomenal, very much appreciate it.. just copied and pasted her full name on my browser, could easily spot her site at top-search
SCAMMER
@@lancycamaramy investments are yielding 14% right now, sooooooo seems the YTs we’re right. Single Family Housing isn’t an investment in this market though. If you put 25% on a 180k house right now you don’t start paying more principal than interest until 2044, halve the interest and you start it in 2034. MASSIVELY affects buying power, and I hope to god housing isn’t going up 8% a year for it to be considered an investment. That’s terrible.
US inflation is now 2.97%, if the FED keeps tightening now then they will trigger deflation not seen since the 1930's. Just like the sleepwalk into high inflation we're now seeing the FED sleepwalk into deflation a far worse and dangerous situation.
Greed, the name of the game, always has been, always will.
Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60, therefore I need suggestions on what investments to make.
There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.
@@AstaKristjan I've been in touch with a financial analyst ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
@@IrenaDolinsek Please can you leave behind the info of the F/A guiding you?
@@simonbad I happen to know Michelle Christine Parker, She has been my fin coach since 2018, no major losses has been recorded. Totally recommend her too.
@@IrenaDolinsek Oh found her! Looked up her full name and she was my top search. Thank you for this! Really appreciate.
One thing I’ve noticed with anything BAD FINACIALLY is because of…. Yea you guessed it: GOVERNMENT
The only thing that matters is who gets left holding the bag. Pensions? Homeowners? Taxpayers? but never the CEO's of Wall Street
Eh it depends. A couple of bad quarters and they're out. The average tenure of a CEO is just under 5 years...
"Annnnnnnd it's gone"
And they leave with a multi hundred million dollar compensation package
All facts
@@Chad_Max true but that is just getting kicked off the gravy train. That’s not the same as being a bag holder.
The United States is grappling with the challenging combination of inflation and recession. An alarming aspect of this recession is the surge in consumer credit card debt. In April alone, credit card debt escalated by 20%, and rates have doubled within a year. Inflation has reached such heights that consumers are resorting to debt for essential life necessities. The signs of a collapse are evident, and the prospect of more layoffs looms. This is why I am considering entering the market now, anticipating a recovery in the economy. I am in the process of constructing a $600k portfolio. Do you have any recommendations for stocks in this scenario?
Focus on two primary goals. Firstly, prioritize your safety by understanding the opportune moments to sell stocks, aiming to minimize losses and maximize gains. Secondly, prepare to capitalize on market shifts. I recommend seeking advice from a Certified Financial Planner (CFP) or another professional to guide you in achieving these objectives.
Since the inception of my business, I've maintained contact with a financial advisor. In the current cultural landscape, the difficulty lies in discerning the opportune moments to buy or sell when dealing with trending stocks. This process, while seemingly straightforward, is effectively managed by my advisor, who handles entry and exit orders for my portfolio. Over the span of just a little over a year, my portfolio has seen substantial growth, exceeding $750k.
May I inquire about the investment firm you're currently associated with? I had previously invested through Goldman, but their offerings did not align with my preferences.
I steer clear of using firms as wealth managers because their extensive bureaucracies often hinder favorable returns. Instead, I opt for individual wealth managers with established track records. You might want to explore a couple of them. Personally, I collaborate with Stacey Lee Decker.
The markets are still unsure if the Federal Reserve will continue to its plan to raise interest rates until inflation is under control, despite the fact that bond yields are rising while stock prices are falling. What is the greatest strategy to take advantage of the current bear market while I'm still deciding whether to sell my $401k worth of stocks?
For the average person, these techniques are rather demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.
Working with a reputable investing coach is now the greatest market approach. Since a while ago, I've been in contact with a coach, mostly because I don't have the breadth of knowledge or mental fortitude to handle these recurrent market conditions. I made almost $700k during this downturn, demonstrating that the market is more complex than most people realize.
@@raymondbarnes5264 Due to the significant falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this coach?
@@mariahhayes5089 My consultant is 'BRIDGET MARY TUROW", look her up online for her page.
@@raymondbarnes5264 Found her webpage. I wrote her a message, hopefully she responds, I plan for this 2023 to be my year of financial success.
If we are to survive in this economic crisis we need assistance right away. The ETF and stock markets are still quite volatile, just like the property market. I'm still at a crossroads deciding if to liquidate my $300k stock portfolio
Many people are still getting fantastic returns on their investments during this time. Simply maintain a strong sense of reality or ask for professional assistance.
I've been working with an advisor for a while now, and I've made almost $320K since the second quarter. Having a financial consultant is currently the ideal course of action, particularly for those who are nearing retirement and are unsure how to approach the financial market.
That does make a lot of sense, good for you though, unlike us, you seem to have the Market figured out. Who is this consultant?
Because of my line of work, I am unable to manage my portfolio, so I simply mimic the trades of *SHARON LOUISE COUNT* a Financial consultant I watched on Bloomberg Business News. You can just search her
Found her webpage by looking up her name online. She seems very proficient, scheduled a call.
As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional.
A colleague once proposed the idea of diversification to me, hopefully for positive results to offset any negative performance. At once, I backed it up using an advisor in order to avoid any fiasco. As of today, my portfolio has yielded over $450k in profits, from an initial $180k this year alone
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
There are many financial coaches who excel in their profession, but for the time being, I employ “CATHERINE MORRISON EVANS” because I adore her methods. You can make research and find out more.
I set up a call with her and am really grateful that I did. I copied and entered her name into my browser and it came up in the top search results. I've seen comments about advisers but not one who looks this amazing.
Since Biden took office, there seem to have been more unfavorable results in America. These results include effects on the markets, such as price declines and sharp increases in inflation, as well as bank failures. I wonder if the sudden increase in interest rates will help value investors or if it would be wiser to stay away from the stock and financial markets for the time being.
To "buy the dip" It will be profitable in the long run. However, investors should be wary of the bull run. It is advisable to connect with a skilled adviser to fulfill your growth objectives and prevent mistakes. High interest rates typically result in lower stock prices.
I genuinely appreciate having a portfolio coach who assists me in making daily market decisions. They possess a unique set of skills that allows them to take advantage of both long and short positions, offering the potential for substantial gains while also providing protection against market downturns. Furthermore, they have access to exclusive information and virtually ensuring superior performance. I've been working with a portfolio coach for over two years, and during that period, my earnings have exceeded $300,000.
Could you kindly leave your investment advisor's contact information here? I absolutely must have one.
Oh, I know Mrs Marisol Cordova, a fantastic financial advisor. She has a large following and is very well-liked. By conducting a brief search, you can quickly locate her.
thanks for sharing this, I googled the lady you mentioned and after going through her resume, I can tell she's a pro. I wrote her and I'm waiting on her reply
Thanks for this! Where do you folks hold your AZR57X ? on Cex or on ur own walllet.
🤣
Finance and Business books have been so helpful. I’m 55 and my wife 50 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. No longer putting blames on FED for our misfortunes. Saving and investing lifestyle in the stock market made it possible for us this early, even till now we earn weekly.
You have done great for yourselves. I understand the fact that tomorrow isn't promised to anyone, but investing today is a hard thing to do for me now because I have no idea of how and where to invest in. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.
Heard many good recommendations about Stephanie Kopp Meeks by some YT channels, Seminars and other platforms
Attenzione borseggiatrici!! Attenzione pickpocket!!
BOT ALERT!
No you're not 😂
As a Retired combat Marine I want to tell you that as what you are doing is just as important as any warrior on the battlefield. You are waging warfare against these criminals and terrorists on the digital battlefield. You are defending and protecting the most vulnerable of our society against these predators. Keep up the good work MYSTICFLIP on the internet
....EconomistBankerz what do you ever know about the Economy?
All things done are toMislead like in the Wolf of Wall street movie... *as* *long* *as* *You* *can* *say* *What* *Could* *have* *been...*
Dont listen to them, Listen to yourself... They will Overload you with their Facts and you will say I see how this can happened...
When in the End *IT* *DOESNT* *HAPPENED* *THAT* *WAY*
God damn bots
What are you talking about???
@@squibbelsmcjohnsonseriously man 😂😂
It means corporations can no longer expect free money from the Fed in order to focus solely on stock buybacks… but rather will now need to focus profits into growth of the business, as it should originally be…
And extracting as much surplus value from workers as possible without stirring the masses.
@@atra7812 Americans are already the most productive workers in the world. At most, they (corporations) could follow an Amazon model and have high worker turnover rate in order to prevent benefits, but then you face the same problem as Amazon in eventually running out of potential talent.
@@Lords1997 what I mean by extracting value is to pay them lees that what they produce not just make them produce more but also pay them less for the same of more productivity.
@@atra7812 aah, yeah I can see that
Many companies got a hefty amount from government during covid though.
Really, banks require more regulation. The entire idea of banking as "let's gamble" is terrifying. Because they discovered in 2008 that the government will always bail them out, there are no repercussions. These bank crisis are so worrisome. This whole financial crisis and the Great Recession posed the most significant macroeconomic challenges for the United States in a half-century, leaving behind high unemployment and below-target inflation and calling for highly accommodative monetary policies. And this is only the beginning!
I have learnt not to trust corporations, especially these banks. I was badly hit by the '08 financial crisis. Since 2019, I've just been focused on investing through a financial advisor and it has been paying off. No major loss has ever been recorded since 2019 i started. I'm closer to having a million now than i ever was with the banks. I'm never going back to banks full time.
@bennettfauciofficial
When I went to apply for a loan in 2021, the banker was apologizing for all the paperwork and difficulty getting approval for the loan. They tried to pass it off as "Unfortunately when the GFC happened, the government overreacted and added so many regulations that it backfired." As someone whose dad lost their job in 2008: no, the regulations were definitely not an overreaction.
How did that "regulation" work in finding Madoff? because it took the private sector about 2 hours, while the government regulators actually never figured it out but rather the crash of 2008 forced his scheme to fail. Regulation only gives poor people the comfort of feeling the FDIC and regulators have their back, when in reality the regulators are just incompetent...and I know this because if they were competent they would be working in the private sector making 10 times the money...only the losers work for the government
We’ve got Alan Greenspan to thank. He convinced Clinton Administration to repeal the Glass-Steagell Act.
Stocks are rallying but I know better, macro shows the economy is yet to recover. I been holding stocks to sell at a profit at this time but it is looking like a bull market the rest of 2023. I am in a fight to hold or to sell. I’m up to 297 grand from a low of 250 thousand last year.
FOMO is the problem. Nothing to see here.
The market has been a turmoil since covid, the brief relief rallied for only a year and now the devastating effects of pumping trillions into the economy is here and will be for a while
Stay in the mrkt and sell only if you need those funds. I got laid off and it has been difficult getting another source of income, glad I was investing when I did and of course with guidannce from a wealth-manager don’t listen to naysayers. I am making bank and the penalties for drawing from 401k to reinvest are nothing compared to the amount of wealth I now possess with my family.
@@westgibbs I have seen a lot about FAs and actually want to consult some pro. How did you go about it? Is yours any good?
@@Javier_Rodri I have saved myself from all the hassle that the chaotic market causes. These days the best way to come into the market space is seeking guidance, due to side hustles i can’t handle my portfolio so i just work with LOREN LENA WALKER, a FA i came across via a recommendation from one of these UA-cam retirement coaches.
It’s been smooth since then. Cliche as it may I have made a mark up of 70% in profits investing 350k under her. It helps not to be worried about your portfolio every minute of the day.
I'm DCAing in MYSTICFLIP as well. ETH heavier DCA and ALGO. I'm taking your advice and starting Google tomorrow with a 50 dollar purchase and continuing Microsoft and Apple. VTI and VOO on another app and longterm portfolio. Here we go family!
When the FED suppresses interest rates below their neutral rate, it encourages mal-investment. There is a price to be paid for 10 years of below-natural/neutral interest rates.
Relax, Michael Howel explained that Fed Liquidity is actually increasing, and " Babies Bommers " already start to retire, plus Defense budget will increase dispite placing a debt ceiling. Meaning after election, QE will come big time to finance 401K retirement ( and TGA ), since tax is not increased YET.
@lake What is the "price to be paid"?
@@Lawliet734Your kids will eat one meal a day and work 7 days a week.
@@Lawliet734 first, inflation, then dramatically higher interest rates, and mal-investments failing (think the coming commercial real estate crisis...)
@@carloschu7127 fed liquidity increase drives down interest rates and pushes inflation higher....
The fed finally realized that free money and trickle down economics caused a great economic imbalance. The rich become richer and the poor poorer. With low interest rates we had zombie corporations that had no business in the stock market and huge corporations like Black Rock that took advantage of corporate welfare "0% interest rates" to purchase high amounts of real estate that would give them the needed leverage to dictate the price in both the rental and price of real estate to the detriment of working people. We, working people didn't have the 0% advantage that black Rock had, thus nowadays most working people can't afford to rent a decent home much less to buy one due to the fact that wages did not keep up with inflation among other economic factors. The fed needs to go back to responsible fiscal policy and adopt the strategy that worked for Paul A Volcker in the past. Some of the current socieconomic problems are the result of the loose fiscal policy that we had since Greenspan. How is it possible Greenspan lowered the prime interest rate to 1% since June of 2003 without any secondary socieconomic effects. Well, that's impossible and now we see the results. A lot of homeless people are not homeless by choice. They are homeless because their wages are not enough to pay for food, much less decent housing.
Thank Reagan, a Republican, for trickle down economics.
Correct and I also 😢blame Nixon for taking us off the gold standard which began this degradation of the dollar. Covered up by crisis after crisis and here we are.
Rothschilds behind all atrocities happened in past, present and future. Currently that figure is BlackRock Larry fink. Russia and Putin is only resistance against such atrocities happening in world today. Zelensky television show was funded by BlackRock and Rothschild. They control is fed reserve.
Instead of the Fed injecting money into the markets, now it's the US Gov. Look at the big spikes in the US national debt recently.
@@dohc1067but nixon made the right decision, France we’re about to take our gold reserves which would’ve rank the dollar. And we eventually had stagflation and Volker got us out of it with tightening monetary policy. But we should’ve gon back to it eventually
Zero and near zero interest rates are a symptom of an unhealthy economy. The lure of the low interest rate is to get those with marginal credit worthiness to take on debt. Collapse occurs when the foundation is built on unstable ground.
That's how it was back then, as real estate prices soared, people with poor or no credit were lent for profit, and finally the bank animals packed these junk debts to stupid economic companies, and finally those who did not have credit could not pay off the debt, and the thieves began to argue that they did not steal at all, and finally exploded
When trump was president I bought equipment and stuff at 0%. It was booming. Now it's high and inflation is rampant
This is nothing more than another boom/bust cycle purposefully engineered by the un-elected billionaires that control our economy via central bank actions... again.
Totally correct. The sub-prime mortgage crisis which caused the 2008 financial crisis is the prime example of that very financial stupidity.
yes. in the long run, it it easier to create stable growth when interest rates are not stalled at the zero bound. Printing all that money may have been a blessing in disguise, as Bernankes helicopter money theory has been proven true, and could be used in future. This is great news, as the fed has finally learned how to steer the ship, all countries should have low unemployment from here out. We are witnessing history!
MYSTICFLIP is young. Holding almost anything mentioned here is a good hold because the VHS or Beta will only show in time. I want to hold them early. Its sad that most dont think of these things as good future holds instead of being out of the market and bottom hunting. Are we the adopters or are we scavengers? surely one of these layer ones will become the standard and i dont want to sell any of them too early.
These are very well done and could be used in classrooms at a college level. No fluff. Just instructional.
I’d hope so. It’s cnbc
What? This is straight propaganda
@@ebikeslapunta9294 How so?
@@user-yd2ug9uf3f which is incorrect dummy
@@user-yd2ug9uf3f The other party would have printed too.
Banks should be let to fail! They're taking too much risk with customer deposits because the FED has their back! It's a moral hazard!
Nah, bank runs due to banks failing were what led to the great depression. Its one of those things were letting banks fail leads to major economic repercussions that can take several years to iron out. Unless you're a CEO of a larger bank looking to snatch up the failing bank, you should not be wishing a bank to fail. Especially if you're middle class...
@@Chad_Max There is a difference between letting a bank fail and allowing for essentially a no consequence bailout using the taxpayers money. The usual method to handle this historically was to nationalize the bank. Everyone at the Director level and above no longer has a job. Anyone that invested in the banks stocks or was paid in stocks loses all that value as the stock prices go to zero and are discontinued. Meanwhile the government bails the bank out and runs the bank for 5 years and gets its balance sheet etc. under control and then sells it under some other name. This method insures that there are consequences for investors and the C-Suite if they allow for the bank to fail without having to deal with the consequences of a bank run.
doesn't even matter. the fed with bail them out anyway if they do fail
The banks are fine. It is the democrats that are the problem. The democrats want to preserve the power of the FED, the republicans oppose it
Agreed but the fed is literally owned by BoA, Chase, WF, Citi...Those will survive as they won't look let themselves fail. All other banks will fail by design.
Economists have predicted 12 out of the last 3 recessions.
Thank you for being there MYSTICFLIP when I wanted you to..... I was lost in this new world that I was hassled to start with ....you not only guided me along the way but you also showed me the proper way....whatever little I have been able to achieve in life is because of you today ..... I want to thank you for being there and showing me the proper way of doing thing for me you are my best guide as you truly showed me the way to life....once again , I would like to tell you a heartfelt thanks for being there.
Bot
No problem buddy.. I'll always be here for you 👍
Great content and I thank you for breaking it down!! Even in the current crypt0 dip, I'm happy I can smile back at my portfolio of $56,700 made from my weekly trade within a short period.💯💯💯
@@Eric-RobertI would recommend you get started with a professional broker that will trade for you while you get the profit,I have been investing in stocks cks and crypto for over 6 years now and I was surprised to see i made over $473k in just the past two quarters
@@Eric-RobertI would recommend my current broker Alice Lee chen financials. She is currently earning a lot of profit for me and het services are top notch,most likely, you can find her basic information online; you are welcome to do further research.
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"the question is whether interest rates are high or too high relative to the demand for money..." Steve Liesman. Mr. Liesman's comment is the heart of this issue. In a normally functioning market, the price is set where demand for a good meets the supply of that good. Credit markets are where the demand for credit meets the supply of credit and the rate of interest is the price. No normally functioning market ever sees the price go to zero. It happened in credit markets because the government suppressed interest rates to BELOW their equilibrium price. The inflation we see today is a consequence of those Fed policies for the last 10 years. We should return the FED to a single mandate of price stability. And we should limit the Fed's ability to grow interest rates dramatically faster than the growth of GDP.
Recessions occur to correct the overcorrection. The end of 2023/beginning of 2024 should see what really happens with increased rates. The 2000 bubble and 2008 bubble inflation was low. Downturns quickly recovered with decreased interest rates. 2023 we have high inflation and 32 trillion in debt. This is a completely different scenario
Intrest rates are finally getting back to where they always should be! There should be a cost to borrow money. And the middle class can actually make some money in low risk investments, like CDs ect..
@@slimeside1307 These high prices may stem from those low interest rates that allowed companies to inject artificial value into the economy. Everything seems more expensive because there is more money flowing around.
@@slimeside1307 I do feel bad for this younger generation, it's not easy. But I think it's more of wage problem than an interest rate problem. Wages aren't close to what they were 30 or 40 years ago adjusted for inflation. Really just corporate greed in the end.
Lol. The middle class is being crushed by Bidenflation. You have to have extra cash laying around to invest. That well is drying up.
This allows for a more healthy economy and financial system. As they said, money, because of how cheap it was, got lent out to people or companies it probably shouldn't have had. Yes, there will be some pain, but in the long run, we will be in a better place because of it. What I find interesting is no one is talking about the global impact these rates will have as the dollar has become incredibly strong when compared to other countries. Also, people forget how easy it is for these large investors to manipulate stocks, and now, with rates being as high as they are, other safer investments look much better, like CDs and Bonds that isn't prone to manipulation and huge daily swings in value.
Thank you so much MYSTICFLIP for my SBA approval. I understand the terms and conditions of the loan disbursal and will make sure that I return the loan amount in the stipulated timeline. As I have already taken insurance for my new Business that I am planning to open in California LA. My business details and owner details have been submitted in the bank and I will be submitting the further details as well as and when the times comes.
For the First time in Years..I put my savings into a CD..previously it wasn't worth messing with
Fed 6month bonds giving over 5%
What your CD paying?
You should do a new video about MYSTICFLIP ! I really like you’re mellow delivery and you seem like you’re very knowledgeable. I watch lots of influencers and you always seem very calculated and know exactly what you’re talking about and understand it. You’re better at explaining complicated things simply, than any other person on youtube keep it up brother!
Part of the inflation problems were caused by greedy corporations, and now they are starting to pay the price for their greed with the cost of borrowing going up.
@@RajbirSingh-ul1mw please taxes historically are the lowest they've ever been in history. Also, corporations should pay taxes and their fair share they use the same roads, bridges, and public services that the average American does. Don't tell me companies that claim record profits every year can't afford to pay the same taxes as a public school teacher. Trillion-dollar defense budgets don't fund themselves.
The Fed is no doubt at fault when they were too slow in controlling inflation in the beginning and now they are trying to do extreme catchup. The pandemic, the supply chain issues, and the Ukraine war all contribute to this perfect storm of brewing inflation. Don't forget the big spike in housing prices, that's another reason the Fed is having a hard time-fighting inflation. All in all, cash in king now and milk that high savings rate if you got the cash.
The ups and downs can be hard to stomach at times but in all my years of investing, my investments have always Increased in value despite several downturns. Be encouraged!
@@tudorrwilson this is huge! mind if I look up the advisr that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
@@tudorrwilson Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
The US economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Things are strange right now. The US dollar is becoming less valuable because of inflation, and other powerful nations waking up to trade in their own currencies. Good thing is, a lot of people still turn to the Dollar because of the safety is somehow assures. I'm worried about my retirement savings of about $420,000 losing value because of these factors and more. Where else can we keep our money?
A socio-economic system where the working class is hit hard by decisions either way regarding interest rates is clearly broken.
Exactly. French Revolution 2.0 closer and closer everyday.
That's life. Would you rather have another great depression instead with 25% unemployment?
Wages are depressed with respect to cost of living. Corporate greed. Only rich are getting super rich. Rise of trillionaires. System is broken.
Commercial real estate is in trouble to some degree.
all real estate is. people are kidding themselves if they think single family homes can support these prices at these rates for a long period of time. its the feds goal to crash the economy by way of real estate and employment
Zero interest rates should never had been thing from the start. The big banks should have been allowed to fail and go under, and stop the insanity that was 2007-2009.
ua-cam.com/video/RaX1gnoFFRI/v-deo.html best for students
0:05: 📈 The United States is entering a new economic era with interest rate hikes by the Federal Reserve reshaping personal finance and distorting Wall Street.
2:42: 📊 Low interest rates can benefit lower income workers and decrease wage differentials, but may increase wealth inequality.
5:22: 📉 The increase in interest rates is impacting companies, startups, and the real estate market, leading to corporate defaults and potential banking sector troubles.
8:15: 💰 Low interest rates have led to increased risk-taking by banks, resulting in potential losses and deposit flight. Everyday people are seeking higher interest-bearing accounts to protect their savings.
10:39: 📈 The current rising interest rate environment is expected to stimulate business dynamism and entrepreneurial spirit, but the impact on jobs and the possibility of a soft landing or recession are uncertain.
Recap by Tammy AI
media.tenor.com/6UIqzxyCMWwAAAAC/im-not-even-mad-thats-amazing.gif
That was a good video for something we do not pay lot of attention to. In my case, sometimes (not always) when I am doing my long runs on bike trail or say hour long run on treadmill, I feel weird/uneasy in metatarsals area across my left foot. It is not pain or numbness, it is not tingling but it is just weird feeling. Somehow it gets resolved by pouring cold water on the shoe. Shoes are not more than 200 miles old... not much of wear tear on them. Having said that last year when it came up, I got new shoes and I could finish my season. Hind sight, it was not shoes... recently, I went to local running shoe place and lady suggested me to try double layer socks so foot can move sideways without friction with the sole. That did not seem to help. Anybody else experienced this problem.. any suggestions?
Considering we have been in a recession for over a year according to the old definition. I think the short and shallow recession has long since passed.
5% is a good minimum fed funds rate. The whole reason we have over-valued real estate was due to low interest rates after the dotcom bust and 2008 housing market crash. 5% helps keep an asset bubble in check.
So why stocks are up??? Crazy
The higher interest rates seem to only benefit the banks and wealthy. What about those of us first time homebuyers who will never be able to afford these new interest rates?
0% interest rates, for those who could access it, is sort of like being able to get the free use of a car for a year or so and use it for Uber or pizza delivery. After a year, you return the car to the dealership at no cost to you and you get to keep the money you made with it.
Many "businesses" have been operating like this unchecked for too long. No risk, pure reward.
Concerns about a potential recession and the Fed's talk of interest rate hikes have left me uneasy. I'm unsure about my $440K portfolio strategy, considering the uncertainty of a recession and the possibility that interest rates may not rise significantly
I completely understand your concerns. But In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
I agree. This is why having the right plan is invaluable, my $510k portfolio is well-matched for every season of the market and recently hit 100% rise fromm early last year. I and my CFP are working on a more figures ballpark goal this 2024
Pls can you recommend this particular coach you using their service?
She's a "Heather Lee Larioni". Also maintains an online presence. Just make a simple search for her name online.
Thanks for this. Found her and looked through her credentials before contacting her. Once again many thanks.
Free money at the Fed is the exact reason why we need to nationalize the financial system in this country. It’s obvious that the economic system in this country is beyond corrupt and broken.
The Federal Reserve is like a crime syndicate. Choosing winners and loosers.
It's quite simple why rates are climbing with rising imports and falling exports, the FED is obviously to be blamed for banking crisis. Something will eventually break if they keep the quantitative tightening and higher interest rates. Is this really a good time to have some savings in stocks?
first austerity, then brexit, now widespread bank failures. .always do your own research & speak to a license advisor before thinking about putting your money into these crazy markets
Exactly, most youtubers said the market would be fine few months back, but it's been a major downturn. Luckily, since the rona-outbreak in 2020, I've avoided the drawback of trial and error by simply following professional guidance. I'm semi-retd and work only 7.5 hours weekly, with nearly $1m ROI after subsequent investments to date.
this is incredible! how can I vet your advisor, mind sharing info, if you please?
Sonya Lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Summary: Interest rate has been too low for too long, a huge chunk of our economy now depends on it. So if interest rate continues to rise there's a chance that economy is going to crash, but if interest rate remains low it could just be building up to a bigger crash.
Just realized we are living in a history lesson from 2090's.
How many historic moments do we have to live through...
3:48 Interest rates that were too low for too long has changed the definition of "saving" towards everyone having to "invest" IF they could afford to... "saving up" for a future purchase/goal was not possible so it made more people have to go into debt to buy bigger ticket items thus interest rates (debt) worked against them.
U.S. November "small non-farm payrolls" ADP employment increased by 103,000 people, less than expected, the wage growth rate hit a two-year low. How do you feel about this?🙂
Most people venture into crypto to be a millionaire meanwhile I just want to be debt free
That's very practical and smart goal a wise man once said do everything in your power to get out of debt one of his tips on getting rich
I don't understand why youths and adults are still poor when they have a smart phone and great opportunities on how to make money💸
I'm looking for something to venture into on a short term basis, I have about $6k sitting in my savings
@@claresmithy4667I'm enjoying working under a platform that brings good return in my life and I've been making my weekly returns without stress all in cryptocurrency
@@claresmithy4667Learn and trade under a guide I do same and I hardly make losses in the market
This man spends hundreds of thousands of time just to help us. He helps those in need while also helping us. He always puts a smile on our faces and we should appreciate it. Hats off to Him! I love you dude. Crazy I've never payed attention to the MYSTICFLIP on the internet movement when I say ancestral your a gift to our people
Dont listen to them, Listen to yourself... They will Overload you with their Facts and you will say I see how this can happened...
When in the End *IT* *DOESNT* *HAPPENED* *THAT* *WAY*
Oh yea you think so? *Hey* *why* *not* *ask* *him* *what* *stocks* *should* *I* *buy?*
And you wonder why yall are like *Peasantzs* with no money...
Ohh *yeaaaa* BAD *ECONOMY....* that would mean Economist Intentionally did this?
*DID* *THEY?* *ECONOMIST* *INTENTIONALLY* *DO* *THIS?*
@1:43 The analogy of the Federal Reserve as mechanics maintaining an economic engine is an interesting choice. To expand on it they appear to have a hole in the economy's drain pan. Rather than fixing the holes that leak liquidity out of circulation they have been pouring oil in faster than it drains out. In this metaphor the oil is the money supply that helps keep the economic engine lubricated. Those holes in the drain pan? They are the funnels of wealth that take money out of circulation and into the savings, investments, and tax shelters of those who accumulate more than they spend.
I really would not be surprised if the economic imbalance has already caused substantial lost opportunities and begins to slow economic growth. I suspect the trend of sacrificing long term prosperity for short term profit could have undesirable consequences for those not directly profiting from the practice. To be honest it would be interesting to take long standing economic metrics and recalculate them based on a common standard. Changes over time to items in the inflationary basket of goods can obfuscate the health of the economy. Tweaks to calculated unemployment statistics can hide huge swaths of people.
Imagine getting paid millions of dollars, to make tens of thousands of people profit, at the expense of billions. It really feels like we are in a race to the bottom; like a ship full rats greedily trying to eat the last of the supplies on board before they're all gone. At least the rich haven't started to flee, like such metaphorical rats; that would be a bad sign.
Robby is spot on! 🎯
The food index rose 10.1%, the largest 12-month increase since 1981. The energy index rose 34.6%, the largest 12-month increase since 2005. The shelter index rose 5.5%, the largest 12-month increase since 1991.
Covid epidemic for 2years and Russia invading Ukraine definitely had an effect for this issue!
@@gmv0553, Democrat policies caused this.
@@brentkinsworthy4999come on, the current times require serious thinking as an Intellectual to find nuanced answers to difficult problems not like an ideolgue.
Hidden tax, inflation, hurts poor people more than wealthier people. Only way to equalize gap is to educate poor to invest stock market. Own part of a company(asset) vs just buying depreciating products from a company.
The only way to reduce the wealth gap is not to play their rigged game where the big fish eats the small one, how nice when they already have a 100 lap head start. The real way is to eliminate the source of that ill-gotten wealth and size the means of production.
How the poor supposed to invest in the stock market when they are poor and pay check to pay check ?? ??
Rothschilds behind all atrocities happened in past, present and future. Currently that figure is BlackRock Larry fink. Russia and Putin is only resistance against such atrocities happening in world today. Zelensky television show was funded by BlackRock and Rothschild. They control is fed reserve.
Little did I know.. 2009 to 2021 was the golden opportunity to make lots of money. Now, I'm just screwed.
Things are a little off right now. The US dollar's purchasing power is declining, while its value as a whole is rising. Assets like stocks, homes, cryptocurrencies, and precious metals aren't performing as well as they could because individuals are investing their money in dollars for security. I'm worried that my $320,000 in savings may lose value rapidly. What should I do to secure my money?
You know, I've been working with a financial advisor for a while now, and it's been a game-changer. Stacey Lee Decker has been helping me out, and I've seen some great results.
The fed has no choice to let a Great Depression happen.
the fed has bin using the Petrodollar to print free money and cause global inflation. the U.S prints more money than Sudan and the dollar is strong because of the Petrodollar. if you code you will see the scam.
They have been kicking the can down the road for decades. Congress is inhabited by lawyers who know how to overcharge their clients but have no knowledge of budgeting.
The fed hides too much information and they are hiding the Great Depression.
Things are starting to return to normal concerning interest rates. The stock market has flourished due to near-zero rates. People basically got pushed into investing due to the return. Now with interest rates reaching pre-2008 levels, you will start to see money flowing out of the stock market into more traditional and more stable forms of investing. If anything, this will bring about a healthier financial system but will cause issues with a much stronger dollar on the global markets. Some companies will pay a price, especially those that needed to take on large amounts of debt to operate. Yet, in reality, maybe those companies should be in operation.
No that not normal. That cheap trick. You want business to innovate and create new markets not do a cheap accounting tax cut that simulates actually economic growth.
The reason why Tesla is doing so well is because they are innovating their factories. Elon Musk said as far back as 2005 that why should I spend billion dollars trying to improve a gas powered car and get a 3% percent improvement on the car, when I can can invest a billion dollars on the factory and get 47% percent improvement.
Dear CNBC - u need to do something about AUDIO QUALITY of your vids as use some kind of studio volume normalizing enhancement effects as some of your "virtual guest" literally SCREAM in the mic, while others r completely silent and hard to understand especially when they have accent or dialect with issue to clearly articulate... For such a BIG corp. u should finally start thinking about moving things forward!
BTW good vid, thx for sharing it!
CNBC: "Why you paying $3000 for your mortgage/rent is actually a good thing."
Let the market dictate the price of money instead of inept politicians or their appointees.
economic collapse speed run
The market is how you got the Great Depression
@@EvanRustMakes Oh yes lets put government in charge of everything and have Cuba.
@@davidpitchford6510 ? How is Cuba related to the central banking system in the US?
Dumbest thing I ever heard
AZR57X actually saves BTC in the long run because minors now have a reason to stick with it.
This message is to recognize your contribution to the team’s grant approval success. Your commitment had been exemplary and your hard working is an inspiration to everyone around you. You’re a professional MYSTICFLIP
All I can say is the rising interest rates have stopped my house hunting and made me focus on paying off my current mortgage. As well as no new vehicles. I guess I have been spoiled by low interest rates and have now decided to become a cash buyer.
We need rates to climb faster, and more aggressively.
The US dollar is worth so little now. Crazy it just gets worth less and less over time
Most countries experienced high inflation the last few years, so comparatively the USD is still quite strong. Inflation within a currency is always expected, the question is just how much.
These rates have pretty much crushed my hopes of growing in real estate
Honestly it is about time. The low rates were abnormal and are not the historical norm that everyone was getting accustomed to.
Sometimes it feels like everyone has their own way of analyzing economy but no one is providing solution. Only thing that works is interest rate lever and print money on problems
We are in big trouble . Inflation was intentionally done in order for the huge interest rate hikes . Tough times are coming
I agree. In 4-6 years, we will be in a recession
Just like cnbc wrote articles on 2020 saying that interest rates would remain near zero for a very long time?
It seems we're still experiencing the affects of the Financial Crisis, which initially brought about the need for zero interest rates.
I'm favoured, $230K every 4weeks! I can now afford to give back to the locals in my community and also support Charity Organizations. God Bless America 🇺🇸🇺🇸🇺🇸
How do you earn that much
What do you do
I earn from investing in the digital market with the guidance of Mrs Elizabeth Ann Larson Brokerage services...
Her strategy has been helping alot of traders/ newbies out there , with her program I was able to recover my losses from the crash so swiftly .
I'm 40 and have been looking for ways to be successful, please how??
High rates have benefitted the banks, creditors and bondholders. Low rates can work if there is enough gov spending to keep unemployment low and replace the gov spending on interest reduced from the rate cuts.
I just took my first Econ class and I understand everything in this video when before I took it I had no clue what any of this means
I can sum this up way better. It's a great way to take money from the middle class and give it to the rich.
The drink you had the night before is never worth it. But some people can’t see that
I'll be waiting for Danielle DiMartino - Booth to see what she has to say about all of this! She is straight to the point and easier to understand!
And just remember it doesn't matter who has the money bags in the end it was stripped of value before it was taken
New Word Order in play.
Is capitalism still considered new?
@@spacetoast7783
No. Jude World Order and usury is as old as time.
@@spacetoast7783 A centralized bank controlling the gears of the economy is not "capitalism", it's government control. Funny how people can't see what is in front of their face.
@@lewis730 What bailout?
An important part of capitalism is that firms are allowed to fail. It sounds like you prefer the USSR model.
Investing in alternate income streams should be the top priority for everyone right now. especially given the global economic crisis we are currently experiencing. stocks, gold, silver, and virtual currencies are still attractive investments at the moment.
Everyone needs more than their salary to be financial stable. The best thing to do with your money is to invest it rightly, because money left for saving always end up used with no returns.
If you don't find a means of multiplying your money, you will wake up one day and realize that the money you thought you had, had been exhausted. Investment is a ladder to climb the financial wall.
@@maxiecharles2842 Am looking for something to venture into on a short term basis.
@@chrispaul3778 cryptocurrency investment, but you will need a professional guide on that.
Facebook 👇
Rampant inflation never took hold until they started talking about it. They created the exact effects they wanted to see. They spoke inflation into existence. They got it into peoples minds to stock up stock up stock up before prices went way up and that in turn spurred a frenzy of people trying to forward buy their inventory. It’s all psychology and behavior controlling it. The concept of them basically just smashing the economy into the ground is archaic, when all you have is a hammer everything is nail. It’s pretty crazy to watch this all happen in real time and be able to see how stupid it all truly is. Businesses were chugging along just fine, once they started talking about inflation all of the sudden everyone got the green light to raise prices “to get ahead of inflation”. “Sorry yeah had to raise prices you know because inflation” this is what it all is. No amount of economic theory will prove otherwise. Everyday people can see it with their own eyes while the “theorizers” pull from information not taken from reality. We are living it while those in charge are theorizing it from the hamptons.
its simple consumer spending just fell off the cliff a couple months ago and is free falling, basically for the first time in 15 years. in a few more months the death of PCE is going to create major pain doesn't matter how successful the business and the fed will probably have to revert back to 0
Housing shouldn't be an investment. You buy it for a place to live, not to build your portfolio. If you want to make an investment, then invest in a company, bond, or other financial asset. Not in a place where you're supposed to live.
Capitalist zealots will not listen to reason, it is a lost cause. They are either too invested into the system to (actuall capitalist) to let reason get in the way in their way of life reliant in exploitation or they have erroneous preconceived notions based of abstract subjective premises and not in logic or reason. They are basically religious zealots.
Even worse, there is a fixed amount of land. Normal market rules do not apply to something with a fixed quantity. Sure land values are up, but you can't create more land to capitalize on the prices
Federal reserve should maintain moderate rate after controlling inflation.
2.2T that the governement is basicly comandering from bank balance sheet (probably the biggest part of it from the FED rather then the private bank, but still alot from charter bank)
Great to learn all this!...sad how our lives are so controlled by all these forces...we are just like cattle in the stockades...
So it has ever been. At least these days you don't have to start contemplating if a rain dance might actually end the drought.
This is just the start…
Zero interest rates were disastrous and caused all kinds of problems with people spending money that would not otherwise have been spent in ways it NEVER would have been spent...and now it's time to pay the piper for the excesses of zero and close to zero interest rates.