Just A UPS Guy
Bully.
Do you think this is a healthy economy?
dow jones
- Thread starter Jkloc420
- Start date
Not at all
The difference between a have and have nots are going to substantially widen
Car sales will follow because nobody can afford the price of new cars and interest rates
Wally
BrownCafe Innovator & King of Puns
New York, New Jersey Muni Bond Buyers Reap Net Yields Near 10%
(Bloomberg) -- UBS Financial Services Inc. is urging investors to buy the debt of states, whose credit quality is among the highest in the $4 trillion municipal bond market and whose bonds are offering sky-high after-tax yields. Most Read from BloombergSaudi Forces on Alert After Clash With...
New York, New Jersey Muni Bond Buyers Reap Net Yields Near 10%
(Bloomberg) -- UBS Financial Services Inc. is urging investors to buy the debt of states, whose credit quality is among the highest in the $4 trillion municipal bond market and whose bonds are offering sky-high after-tax yields. Most Read from BloombergSaudi Forces on Alert After Clash With...finance.yahoo.com
Wally
BrownCafe Innovator & King of Puns
What are the two different rates?
The fixed rate stays for the life of the bond the other right resets every November 1st and May 1st
But that 1.3% is a good deal
No matter what the inflation rate is you always get that plus the 1.3%
Up In Smoke
Well-Known Member
Apparently the Fed is convinced. They have thrown the kitchen sink at it and we still have high demand, low unemployment, rising wages, record business start ups, strong dollar and GDP growth. Higher for longer is the thought.
Depends on who you ask. Higher wages follow high inflation. Low unemployment is a symptom of having to work more to pay higher prices. One expects high rents in places like New York and L.A. But high rent has come to Topeka and Peoria. So a healthy economy is relative. As always the rich get richer, the poor get poorer.
Just A UPS Guy
Bully.
Unemployment is always an arbitrary number and based on the number of people looking for work, not the unemployed, I personally discount it's application to economic health anyway. Record debt, housing foreclosures picking up at an alarming rate, vehicle repossessions same, real inflation remaining high don't seem like healthy signs. Feels like a house of cards to me, but we'll see, I'll be okay either way.
Up In Smoke
Well-Known Member
Free money drive demand. Demand drove hiring. Hiring drive wages and demand and wages combined drove inflation. The Fed can't do a lot about wages, so they are trying to curb demand with high interest rates.
Hold on to your ass
High money printing drove inflation. What your graph doesn't say is wage increases were disproportionately higher among high earners. Low wage earners didn't benefit nearly as much. Very little. And have to work more now to keep up.
Another aspect of that is during the Trump years due to tax cuts businesses boomed. Were growing to take advantage of being able to keep more. With the growth that increased hiring and competition for employees which led to wage growth. But we were talking about wage growth in the current economy. The employers have to charge more to cover their costs. This leads to paying higher wages so that their employees don't jump ship to another company for a little bit more. We're nowhere near where employees are getting wealthier because of higher wages. Families have much higher costs and less disposable income under Biden. We can spin any way we like but that's the cold hard truth.
Up In Smoke
Well-Known Member
More than 40% of our current money supply was "printed" during the Trump years. Only since QT began have we seen a reversal.
QE has been going on since about 2009 if memory serves. During that time inflation was around 2% annually or less. The problem with Biden is his administration injected about $2 trillion into the system very quickly. Economists, including prominent Democrat economists, warned him in advance that doing so much so fast could cause much higher inflation. That plus putting restrictions on oil exploration and drilling caused the inflation rate to spike. Not a Trump issue.
Up In Smoke
Well-Known Member
I don't have an argument with that. An additional 2T after 7T was not smart. He took a bad future outcome and made it worse.
Up In Smoke
Well-Known Member
Powell used the word "very" like he was trying to write a 500 word term paper. The economy is very strong, the consumer is very strong, the labor market is very strong and wages are very strong. The Fed pause was expected and the markets like it and treasuries have also pulled back.
Up In Smoke
Well-Known Member
One thing I found interesting, Powell and the Presidents didn't give a recession any weight when determining the monetary policy going forward. Short sighted IMO.
The Fed was very short-sighted not selling more longer maturity bonds two to three years ago
