Yes but everything else wasn't as expensive as it is now..
dow jones
- Thread starter Jkloc420
- Start date
Wally
BrownCafe Innovator & King of Puns
Wood burning is no picnic either. Less time just working more and buying the oil with the extra cash. Most wood burners way underestimate the time they spend cutting, splitting, stacking wood, plus cleaning, and feeding the stove.
That's why I'm going to steal his.
Wally
BrownCafe Innovator & King of Puns
How many cords of wood you going to "borrow"?
As much with the can fit in a p1200
Wally
BrownCafe Innovator & King of Puns
You better get help.
I'll have @Jkloc420 load it up for me.
Jkloc420
Do you need an air compressor or tire gauge
This room is for vip's sir
Get out
Jkloc420
Do you need an air compressor or tire gauge
Get out there
Market was up today
Jkloc420
Do you need an air compressor or tire gauge
Get out there
DELACROIX
In the Spirit of Honore' Daumier
The only thing we can do is not panicJust wait...
Up In Smoke
Well-Known Member
The Kato Institute interview with Fed President Powell was very interesting. If you didn't watch it and you're interested in his opinion how the US got into this economic mess, it's a pretty informative.
fishtm2001
Well-Known Member
Kato. No thanks. Cato, possibly.
Up In Smoke
Well-Known Member
Somehow I came off the rails on that last post. I recommend watching the interview.
Up In Smoke
Well-Known Member
I'm a small business owner first and an investor second. I would argue that a poor response to the 9/11 attacks started our current debt/deficit Fed issues. In response the treasury dumped money into the economy, the government deregulated mortgage standards and funded unwinnable wars. The dollar bottomed out, the trade deficit skyrocketed and people blindly borrowed money from unscrupulous sources. Enter recession of 2008, unemployment, foreclosures, bailouts and the treasury again frees up money for the Fed to inject into the economy. So 2010-2014, more bad policies, more bad spending, more bad Fed guidance. Finally in 2014, with the help of sequestration, the government spending is restrained, the Fed can begin to gain some control of the monetary policies and the economy can begin to build organically. Finally as the US chugs slowly along, it's determined we need to spend more, take in less (tax cuts), drive down the value of the dollar, max out our trade deficit and tariff goods essential to our everyday needs. The Fed again in 2018 tried to gain some sort of control of the economy by raising rates and reducing it's balance sheet, but the market responded badly and they decided to reverse course in 2019. More QE, more money injected and lowering of interest rates. Enter the pandemic, 3 trillion dollars more in spending (helicopter cash), massive injection of dollars from the treasury to save the economy and bailouts for dozens of industries. Today we pay the price for two decades of bad government spending and bad monetary policies. IMO. But hey, the stock market was saved.
Really started with the dot.com bubble bursting. The last man standing after the NASDAQ cratered in 2002 was real estate. Money started pouring into it and a couple of Democratic Congressmen, Frank and Dodd, who were beholden to donors, particularly Countrywide Mortgage, started pushing banks to lend to those with poor credit because as they said it was unfair that the poor, especially minorities, were missing out on the run up in equity in real estate. Wall Street started bundling these bad mortgages into securities that were traded on the stock exchanges. Developed complex derivatives(don't have a clue how they work)that were highly leveraged. When the market started stalling for a lack of new buyers and the buyers with bad credit started defaulting it all came crashing down. Lehman Brothers went under and the government decided the entire system would collapse if they didn't step in. You pointed out the QE that followed. That delayed the inevitable reckoning which has been accelerated due to the government panicking and greatly increased the money supply in the last two years. And now we're in a damned if you do/don't scenario. But as bad as it seems the U.S. is in a much better position than Europe or China. But there's some pain ahead.
Up In Smoke
Well-Known Member
I agree there will be pain ahead. QT, once it takes full hold should extract a trillion dollars per year from the Fed's balance sheet. The 6/7 trillion added in 2019 and 2020 is the end goal. GDP should rebound slightly the rest of the year based on easing export deficits and the strong dollar. Corporate earnings will be strained with energy and wages, but once the Fed holds tight, capital will again flow and the economy and market should start the slow grind again.
