dow jones

oldngray

nowhere special
The problem we created was that there was no other place to put it. Treasuries, bonds and currencies were at near zero, if not negative. The propping up of our economy for a decade made the market the only place to make money. We were led to believe that the free money would never stop. The failure of the Fed to follow through in 2018 and massive spending in 2020/21 has brought us to this tipping point. I've said it before, this is going to hurt, but it's necessary to reset our economy and bring valuations back to earth.
Even if you tried to play it safe inflation still kills you.
 

vantexan

Well-Known Member
You do realize the last administration spent more than any other in history? Government spending, unfunded tax cuts, massive subsides and tariffs. Part of what we're seeing now is the unwinding of those government giveaways.
Not so. Barack Obama spent more in sheer numbers and was 5th overall in percentage increase over the previous administration. Trump had one huge year, 2020, over 4 trillion due to the pandemic and resulting economic stimulus pkg. In terms of percentage increase over the previous administration FDR was #1 and Harry Truman was the biggest spender adjusted for inflation due to WWII and the Korean War.
 

Up In Smoke

Well-Known Member
Even if you tried to play it safe inflation still kills you.
How? If you were check to check the last 10 years, shame on you. Short of having a family health or financial issue, the average return on investment and housing was up over 18% per year. Where did it go? How could you have blown it all?
 

oldngray

nowhere special
How? If you were check to check the last 10 years, shame on you. Short of having a family health or financial issue, the average return on investment and housing was up over 18% per year. Where did it go? How could you have blown it all?
I'm not talking about the last 10 years. Just the current mess.

It didn't take long for all those gains to vanish.
 

Up In Smoke

Well-Known Member
Not so. Barack Obama spent more in sheer numbers and was 5th overall in percentage increase over the previous administration. Trump had one huge year, 2020, over 4 trillion due to the pandemic and resulting economic stimulus pkg. In terms of percentage increase over the previous administration FDR was #1 and Harry Truman was the biggest spender adjusted for inflation due to WWII and the Korean War.
7.8 trillion added in 4 years. When your in the big chair, you get the good and the bad.
 

vantexan

Well-Known Member
7.8 trillion added in 4 years. When your in the big chair, you get the good and the bad.
$8.6 trillion under Obama in 8 years and it was under his administration and continued under the next two we got quantitative easing which is the real reason we're in this mess printing so much money. Biden exacerbated it with a $2 trillion spending bill and thankfully Manchin and Sinema kept him from spending another $5 trillion.
 

Up In Smoke

Well-Known Member
I'm not talking about the last 10 years. Just the current mess.

It didn't take long for all those gains to vanish.
Even after today's sell off the market is up 500% since 2010. We are in this current mess because of all the government spending over the last 14 years. As soon as the Fed threatened to raise rates and and sell off it's assets the market began to adjust to a self reliant level.
 

oldngray

nowhere special
Even after today's sell off the market is up 500% since 2010. We are in this current mess because of all the government spending over the last 14 years. As soon as the Fed threatened to raise rates and and sell off it's assets the market began to adjust to a self reliant level.
The market was already crashing before they raised interest rates
 

vantexan

Well-Known Member
Even after today's sell off the market is up 500% since 2010. We are in this current mess because of all the government spending over the last 14 years. As soon as the Fed threatened to raise rates and and sell off it's assets the market began to adjust to a self reliant level.
We didn't have bad inflation however until Biden, against the advice of prominent economists like Larry Summers, pumped two trillion in spending PLUS cancelled drilling on Federal land reducing our oil supply. Higher fuel costs and too much money in circulation is what we're experiencing.
 

Up In Smoke

Well-Known Member
Should be a quiet day, most of the options action was flushed out the last two days. So much money changed hands. For every market loser, there's a market winner.
 

fishtm2001

Well-Known Member
We didn't have bad inflation however until Biden, against the advice of prominent economists like Larry Summers, pumped two trillion in spending PLUS cancelled drilling on Federal land reducing our oil supply. Higher fuel costs and too much money in circulation is what we're experiencing.
Biden caused worldwide inflation?
 
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