More evidence...

[Michchamp]

what middle class family is buying $400k houses?

around here, they're getting pretty damn close to that.

the increase from 2021 to 2022 was outrageous. and while prices have leveled off, they haven't declined.

 

[mhughes0021]

400k is a low/mid income home in CA....I simply used an example of what I know.

I used 30% because that's the model suggested recently by the Republicans

 

[byco42]

Reality. We are a House of Cards. A casual perusal of the GAO website makes that obvious.

Our money is shin-plaster-like in value. It will be extinct in 10 years, IMO. Maybe sooner. The only reason its available presently, IMO, is to circulate the Masonic, esoteric, sigils it contains. When CBDC is foisted on us, the game is up. Every purchase, tracked. Expiration dates, social scores, and even more restrictive spending, transfers, and storage limits. Taxes automatically garnished from your bank account.

This debt that grows exponentially, created by government -- financed by Americans five generations hence: those lucky enough to not be aborted, that is.

This nation will collapse gradually, then suddenly, and you'll all be shocked, when the signs are all around you.

So who's president, who rants in congress about climate change, who says what in the media, who wins a conference title, who spouts opinions on this board -- all washed away by the pending Dark Ages, which are rushing toward us like a tsunami.

Have a nice day.

 

[Spartanmack]

Reality. We are a House of Cards. A casual perusal of the GAO website makes that obvious.

Our money is shin-plaster-like in value. It will be extinct in 10 years, IMO. Maybe sooner. The only reason its available presently, IMO, is to circulate the Masonic, esoteric, sigils it contains. When CBDC is foisted on us, the game is up. Every purchase, tracked. Expiration dates, social scores, and even more restrictive spending, transfers, and storage limits. Taxes automatically garnished from your bank account.

This debt that grows exponentially, created by government -- financed by Americans five generations hence: those lucky enough to not be aborted, that is.

This nation will collapse gradually, then suddenly, and you'll all be shocked, when the signs are all around you.

So who's president, who rants in congress about climate change, who says what in the media, who wins a conference title, who spouts opinions on this board -- all washed away by the pending Dark Ages, which are rushing toward us like a tsunami.

Have a nice day.

It won't surprise me a bit - the most kind of surprising part would be that I lived long enough to see it.

 

[tinselwolverine]

It won't surprise me a bit - the most kind of surprising part would be that I lived long enough to see it.

I don?t expect to be around.

Sounds kinda apocalyptic - I?d probably just as soon hear/read about it on the other side.

 

[Spartanmack]

Looks like Brandon may not have solved inflation after all...

Both MoM and YoY headline and core CPI higher than expected (and of course, yet to be revised). Probably not high enough for the Fed to surprise us next month with a 50bps hike but no doubt we'll get 25 added to the Fed Funds Rate. The silver lining is more people may need to take on a part time job to pay the bills, making Biden's most likely inflated job creation numbers look better.

 

[tomdalton22]

Looks like Brandon may not have solved inflation after all...

Both MoM and YoY headline and core CPI higher than expected (and of course, yet to be revised). Probably not high enough for the Fed to surprise us next month with a 50bps hike but no doubt we'll get 25 added to the Fed Funds Rate. The silver lining is more people may need to take on a part time job to pay the bills, making Biden's most likely inflated job creation numbers look better.

haha...reminds me of this rant that didn't answer the question of inflation

https://www.youtube.com/watch?v=ywQZVOgYlk0&ab_channel=ForbesBreakingNews

 

[mhughes0021]

Looks like Brandon may not have solved inflation after all...

Both MoM and YoY headline and core CPI higher than expected (and of course, yet to be revised). Probably not high enough for the Fed to surprise us next month with a 50bps hike but no doubt we'll get 25 added to the Fed Funds Rate. The silver lining is more people may need to take on a part time job to pay the bills, making Biden's most likely inflated job creation numbers look better.

Per usually only part of the story. Yes they were higher than expected. They were also lower than last month.

I'd also argue in not sure how much control they have over the issue. I'm sure the corn and aluminum companies loved their record profits... not sure how willing they are to turn back the clock and bring prices down.

Prices stay high on comodities/raw materials... then prices stay high on finished goods. No way around it...

 

[Spartanmack]

Per usually only part of the story. Yes they were higher than expected. They were also lower than last month.

I'd also argue in not sure how much control they have over the issue. I'm sure the corn and aluminum companies loved their record profits... not sure how willing they are to turn back the clock and bring prices down.

Prices stay high on comodities/raw materials... then prices stay high on finished goods. No way around it...

LOL, the guy who makes up numbers is whining about missing context - that's good. Sure, that post sure was missing a whole lot of context. Inflation was down .1% year over year from last month, about 1/3 of expectation but it was up month over month (seasonally adjusted, which means the MoM number is most likely understated) - it's heading in the wrong direction.

What you argue about how much they can control inflation is irrelevant when they're taking victory laps bragging about how effective their policies are at bringing down inflation.

That's some pretty solid econ knowledge though, thanks for your insights on the impact of raw material price increases. Hey, if inflation forces you into getting a part time job to pay the bills, maybe he can get a job teaching economics at SDSU or a local community college.

 

[mhughes0021]

Economics is part of it. A companies P&L statement is another. All I'm saying is greedy companies don't really give a shit if the middle class is paying more for groceries if their shareholders are happy....fact.

 

[Spartanmack]

Economics is part of it. A companies P&L statement is another. All I'm saying is greedy companies don't really give a shit if the middle class is paying more for groceries if their shareholders are happy....fact.

 

[mhughes0021]

Capitalism at its finest! All we have to do to show them as a people is stop eating!

 

[Spartanmack]

Capitalism at its finest! All we have to do to show them as a people is stop eating!

yeah, this is a failure of capitalism. More pearls of economic wisdom...

 

[mhughes0021]

yeah, this is a failure of capitalism. More pearls of economic wisdom...

Very good... this is an example of economics. Everyone stop eating and the supply goes up ..causing prices to come down. See you're catching on.

 

[Spartanmack]

Very good... this is an example of economics. Everyone stop eating and the supply goes up ..causing prices to come down. See you're catching on.

I've probably forgotten more about economics than you will ever know.

And people don't have to stop eating to affect prices. They can use substitute goods especially for things like eggs & corn, they can grow their own, we can get rid of tariffs and bans on imported foods like sugar, we could stop subsidizing ethanol. Keep reading. One day, you'll catch on.

 

[Spartanmack]

Sorry that Dark Brandon canceled the recession Republicans have been praying for for 2 years.

?Any concern the economy is in recession or close to a recession should be completely dashed by these numbers,? Moody?s Analytics chief economist Mark Zandi told CNN.

And Dark Brandon did so while slashing the Trump budget deficit by 70%.

Oops, looks like Joe "Mr Fiscal Responsibility" Biden is going to add $20 Trillion to the debt with deficit spending over the next decade, taking us from $30 to $50T. That's going from an already too high 1.3x GDP to 2.2x (assuming we don't have another pandemic or financial crisis). Good thing so many Americans are taking on that second job. That's some pretty serious deficit reduction, amiright?

 

[Spartanmack]

Sorry that Dark Brandon canceled the recession Republicans have been praying for for 2 years.

?Any concern the economy is in recession or close to a recession should be completely dashed by these numbers,? Moody?s Analytics chief economist Mark Zandi told CNN.

And Dark Brandon did so while slashing the Trump budget deficit by 70%.

More evidence of the strength of the Joe "Recession Canceller" Biden economy - household debt hits highest level since 2008 financial crisis. For the Johnny's and other economic illiterates of the world, it's not a good thing when floating rate debt reaches highs not seen in over a decade when the Fed is aggressively raising interest rates. I wonder what Mark Zandi is saying about this datapoint...

 

[tomdalton22]

those really low rates from a few years ago are a big part of the problem we have now. Millions of families re-financed their houses but my guess is way too many rolled in the costs, added some other debt to their mortgage, and still went with 30 year loans. A very large percentage are going to end up paying more than they would have if they just kept the original loan with the higher interest rate.

 

[Spartanmack]

those really low rates from a few years ago are a big part of the problem we have now. Millions of families re-financed their houses but my guess is way too many rolled in the costs, added some other debt to their mortgage, and still went with 30 year loans. A very large percentage are going to end up paying more than they would have if they just kept the original loan with the higher interest rate.

they're part of the problem for sure, but most mortgages today are fixed rate debt. Since the '08 crisis, there aren't nearly as many floating rate mortgages so we're not going to see a massive reset of mortgage rates tripling mortgage payments for houses that lost half their value. The bigger issue to me is the floating rate debt (credit card, HELOCs, etc. Credit care debt just blew through previous highs. Those rates are already high and will increase more with market rates.

 

[tomdalton22]

they're part of the problem for sure, but most mortgages today are fixed rate debt. Since the '08 crisis, there aren't nearly as many floating rate mortgages so we're not going to see a massive reset of mortgage rates tripling mortgage payments for houses that lost half their value. The bigger issue to me is the floating rate debt (credit card, HELOCs, etc. Credit care debt just blew through previous highs. Those rates are already high and will increase more with market rates.

you are right...most are fixed rates. The problem with a vast majority that re-financed is they added years to their loans and incorporated other debt into a very long term mortgage.

So, between that and lower interest rates artificially inflating home values...well, people are going to be fucked.