Skip to content
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(NPR)   The reason the stock market is in such a high state of flux? Because the U.S. is getting ready to fight inflation. Wait, "getting ready?" Uh, inflation's been around for months now. Like, a year. Why are we just now getting ready?   (npr.org) divider line
    More: Stupid, Central bank, Stock, Federal Open Market Committee, Monetary policy, Stock market, Fed's latest meeting, Higher interest rates, Interest rate  
•       •       •

319 clicks; posted to Business » and Main » on 25 Jan 2022 at 11:20 AM (16 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



52 Comments     (+0 »)
View Voting Results: Smartest and Funniest


Oldest | « | 1 | 2 | » | Newest | Show all

 
2022-01-25 9:36:22 AM  
You think 'we' means us working people? lol

Higher interest rates will push up borrowing costs for consumers and corporations, and investors are trying to figure out how hard that will hit companies.

They aren't concerned about the 'consumer'.
 
2022-01-25 10:03:19 AM  
The reason the stock market is in such a state of flux:

Federal Reserve Board - Recent balance sheet trends

$8.8 Trillion.

Holy f*ck.
 
2022-01-25 11:17:46 AM  

NewportBarGuy: The reason the stock market is in such a state of flux:

Federal Reserve Board - Recent balance sheet trends

$8.8 Trillion.

Holy f*ck.


Pay down some debt?
 
2022-01-25 11:24:47 AM  
Because all else being equal, inflation lags money supply.

The Fed has been dumping cash out of helicopters since 2008, and the Treasury joined them in 2020.
 
2022-01-25 11:27:11 AM  
you stupid son of a biatch.
 
hej
2022-01-25 11:51:54 AM  
I've been repeatedly assured by Fark financial analysists that there is no inflation, and if there is it's just due to temporary pandemic circumstances, and if it's not temporary then it has nothing to do with printing shiat tons of money to hand out stimmy checks, and if doing that does cause inflation then LOL who cares because only rich stock traders are going to get screwed.
 
2022-01-25 11:53:37 AM  
Preparing after the fact is how we managed the pandemic, and look at us now! Better than ever. Corporate profits are up, and it only cost us still being in a pandemic which costs human lives oh wait this is actually bad
 
2022-01-25 11:55:36 AM  
y.yarn.coView Full Size
 
2022-01-25 11:58:30 AM  

hej: I've been repeatedly assured by Fark financial analysists that there is no inflation, and if there is it's just due to temporary pandemic circumstances, and if it's not temporary then it has nothing to do with printing shiat tons of money to hand out stimmy checks, and if doing that does cause inflation then LOL who cares because only rich stock traders are going to get screwed.


Given inflation is a worldwide phenomenon right now, wouldn't that point to supply chain issues being the primary culprit?
 
2022-01-25 11:58:42 AM  

PerryWinnwet: Preparing after the fact is how we managed the pandemic, and look at us now! Better than ever. Corporate profits are up, and it only cost us still being in a pandemic which costs human lives oh wait this is actually bad


It is how we are addressing climate change and the 20+ year ongoing drought here in the US West.
 
2022-01-25 12:01:48 PM  
The acceleration of printing money in March 2020 had the desired affect of softening the blow the pandemic had on the US economy (not just stock markets). Coupled with the worldwide supply chain issues caused by a pandemic which has killed tens of millions of people, there will be inflation. Probably relatively short lived.

Basically, what the Fark did people want? What was the alternative?
 
2022-01-25 12:02:27 PM  

hej: I've been repeatedly assured by Fark financial analysists that there is no inflation, and if there is it's just due to temporary pandemic circumstances, and if it's not temporary then it has nothing to do with printing shiat tons of money to hand out stimmy checks, and if doing that does cause inflation then LOL who cares because only rich stock traders are going to get screwed.



That talking point finally seems to have disappeared from idiots lately.  Stephanie Ruhle kept pushing that on CNBC and MSNBC and even some dimmer congresspeople where tweeting that out.
 
2022-01-25 12:13:27 PM  

Moopy Mac: hej: I've been repeatedly assured by Fark financial analysists that there is no inflation, and if there is it's just due to temporary pandemic circumstances, and if it's not temporary then it has nothing to do with printing shiat tons of money to hand out stimmy checks, and if doing that does cause inflation then LOL who cares because only rich stock traders are going to get screwed.

Given inflation is a worldwide phenomenon right now, wouldn't that point to supply chain issues being the primary culprit?


Inflation is a combination phenomena. Too much cash for too few goods. Supply (cash) vs. demand (goods). Since most first world countries have had low interest rates and pumped cash into their economies during the pandemic and the world wide supply chain is hosed due to the pandemic, anybody that passed econ 101 with a C could have seen this coming. The FED has to increase interest rates to keep inflation from reaching unsustainable levels. With increased interest rates, big money will be willing to move their money out of the equity  market  and into fixed income bonds.
 
2022-01-25 12:25:08 PM  

hej: I've been repeatedly assured by Fark financial analysists that there is no inflation, and if there is it's just due to temporary pandemic circumstances, and if it's not temporary then it has nothing to do with printing shiat tons of money to hand out stimmy checks, and if doing that does cause inflation then LOL who cares because only rich stock traders are going to get screwed.


Corporations have been reaping the benefits of low interest rate loans since 2008 and you put the blame on the stimulus checks?
 
2022-01-25 12:31:30 PM  
Other than Fark, who didn't see this coming?
 
2022-01-25 12:34:09 PM  
"Sounds like a "buy" opportunity."

This was my stock-stock answer that I used when pissed-off investors called my line during my brief stint in the Investor Relations Office of a major pharmaceutical company that shall remain unnamed.

Sure it made some heads explode with rage, but the funny thing is, people who took my advice would have increased their investment tenfold.

The Strawberry Alarm Clock - Sit With The Guru
Youtube a6FdDq-DWgM
 
2022-01-25 12:39:59 PM  

Moopy Mac: hej: I've been repeatedly assured by Fark financial analysists that there is no inflation, and if there is it's just due to temporary pandemic circumstances, and if it's not temporary then it has nothing to do with printing shiat tons of money to hand out stimmy checks, and if doing that does cause inflation then LOL who cares because only rich stock traders are going to get screwed.

Given inflation is a worldwide phenomenon right now, wouldn't that point to supply chain issues being the primary culprit?


Covid caused the supply chain problems (demand for physical goods is up because demand for services (cruises, movies, concerts) is down and people are spending their money on physical goods instead, at the same time people are out sick at factories and warehouses and stores and transportation companies, so supply is down) which caused inflation (demand up, supply down, means prices increase).  Once Covid has effectively "gone away" and everything is effectively "back to normal", I'll bet inflation magically disappears.
 
2022-01-25 12:44:34 PM  

brap: "Sounds like a "buy" opportunity."

This was my stock-stock answer that I used when pissed-off investors called my line during my brief stint in the Investor Relations Office of a major pharmaceutical company that shall remain unnamed.

Sure it made some heads explode with rage, but the funny thing is, people who took my advice would have increased their investment tenfold.

[Youtube-video https://www.youtube.com/embed/a6FdDq-DWgM]


No, they wouldn't have. 

If I have 100$ and then lose 50$ of it, Buying another 100$ won't affect how that original 100$ performs. 

Let's say I buy a share for 100$, it then craters to $50. I then buy 2 shares for 50$, and the price "doubles".

Well I'm at  300$ for a 200$ buy in. That's not doubling my investment. My Original investment is back to Zero.
 
2022-01-25 12:47:19 PM  
Once again:

Long-term inflation expectations have basically not budged. If anybody with skin in the game thought inflation was going up for the long haul, market interest rates would have already risen by leaps and bounds.

That hasn't happened in the US, or in any advanced economy that I know of.

Here's St. Louis Fed data on long-run inflation expectations, calculated using the differences of yields between nominal and inflation-indexed bonds. The premium of nominal over real as I type this (January 2022) is 2.34 percent, well within historical ranges.

All the evidence we have suggests the spike in inflation is temporary. Anybody trying to tell you otherwise is either an ignoramus or is deliberately whipping up hysteria to make Joe Biden look bad.
 
2022-01-25 12:53:38 PM  

hej: I've been repeatedly assured by Fark financial analysists that there is no inflation, and if there is it's just due to temporary pandemic circumstances, and if it's not temporary then it has nothing to do with printing shiat tons of money to hand out stimmy checks, and if doing that does cause inflation then LOL who cares because only rich stock traders are going to get screwed.


Why do you spend so much time talking to people like that, and fixate so obsessively over what they say?
You must not be very bright.
 
2022-01-25 12:55:36 PM  

MikeyFuccon: Once again:

Long-term inflation expectations have basically not budged. If anybody with skin in the game thought inflation was going up for the long haul, market interest rates would have already risen by leaps and bounds.

That hasn't happened in the US, or in any advanced economy that I know of.

Here's St. Louis Fed data on long-run inflation expectations, calculated using the differences of yields between nominal and inflation-indexed bonds. The premium of nominal over real as I type this (January 2022) is 2.34 percent, well within historical ranges.

All the evidence we have suggests the spike in inflation is temporary. Anybody trying to tell you otherwise is either an ignoramus or is deliberately whipping up hysteria to make Joe Biden look bad.


We don't have market rates of interest. That's what QE is for, to keep them supressed.
 
2022-01-25 1:12:30 PM  

Geotpf: Once Covid has effectively "gone away" and everything is effectively "back to normal", I'll bet inflation magically disappears.


Not likely.  Inflation is not just an economic problem, it's a psychological one.

https://www.npr.org/2021/07/16/1017031811/the-great-inflation-classic

KESTENBAUM: It was a dark time for Paul Volcker.
GOLDSTEIN: Yeah, you know, it was a long slog. I mean, when you look, two years after that big emergency meeting and press conference, unemployment was at 8 percent and rising. Inflation was still a 10 percent where it had been two years before.
KESTENBAUM: If you look at the textbooks, like, once you restrict the amount of money in the economy, inflation should start to get better. But it was not getting better. The reason was something that did not get a lot of attention in the textbooks at the time. Inflation wasn't going away because people didn't believe it was going to go away. Part of the problem was in our heads.
GOLDSTEIN: Yeah, everybody just thought inflation was, like, this permanent feature of the landscape, right? And when that happens, you have this whole cycle, right? Workers go to their bosses and say, hey, give me a raise because there's going to be inflation and the bosses are like, sure, you can have higher wages and I'll just raise my prices.
KESTENBAUM: So you have inflation.
GOLDSTEIN: Done. It's like this self-fulfilling, self-creating thing.
KESTENBAUM: Volcker said this became clear to him when he met with a bunch of businessmen and he told them we are going to deal with this inflation and that's the way it's going to be. What do you say? And one businessman says I don't believe you.
VOLCKER: He said I just had a wage negotiation with my workers and I agreed to give them a 13 percent increase for the next three years.
KESTENBAUM: Thirteen percent wage increase for the next three years.
VOLCKER: Each year for the next three years 'cause that's what I think inflation's going to be. That was one reflection of the mood at the time. Good luck (laughter).
GOLDSTEIN: And that's what the problem was, right?
VOLCKER: That's what the problem was, precisely. That was so ingrained that this guy was willing to make a three-year bet that prices were going to go up - I don't know - 14, 15, 13 percent a year.
KESTENBAUM: Is there a lesson about what inflation is? Like, I think we traditionally think of it as being too much money out there, but this really showed that it was something else. A lot of it was - it's something that's in people's heads.
VOLCKER: Well, these behavior patterns are in your head. That's why Congress don't always understand (laughter) that they are the - the more abstract mathematical models they make the more they lose sight of they're dealing with human beings and emotions and t
hose things change.
KESTENBAUM: Human beings and emotions, those things can take a long time change. Bill Silber, the economist, the guy who wrote the book, told us that if somehow after that first press conference everyone had woken up the next morning and magically just believed that inflation was going to go away it would have gone away pretty quickly. We might even not have had to go through that whole recession. But of course that did not happen.
GOLDSTEIN: Yeah, and in fact, what's striking is how long it did take for Volcker to convince everybody that, you know, that he meant what he said, that he wasn't going to just start printing money again.
KESTENBAUM: Finally, at the end of 1981, more than two years after that emergency meeting, people started to believe Volcker. Inflation dropped to 9 percent, then 7 percent, 6 percent, 4 percent. But by the time it was all over, prices had risen so much that a dollar was worth a lot less than it had been a decade before. Inflation had eaten away at more than half of the value of a dollar.


Couple that with the fact that according to certain people, inflation is always out of control.  You can't go a week on Fark without hearing about the REAL inflation rate.  How often do you read about hyperinflation - which is defined as 50% a month - from people who, I guess, just like how scary it sounds to say hyperinflation.

And now we have strong polarization, so you're going to hear about how inflation is out of control as long as Biden is in the WH.  You heard about how inflation was out of control in 2010 and it's time to buy gold and we actually experienced deflation that year.  We had deflation in 2020.

Meanwhile, the last president wanted the Fed to go to negative interest rates and I don't recall such deep money printing concern at that time with the exact same Fed Chairman.
 
2022-01-25 1:13:23 PM  

rubi_con_man: No, they wouldn't have....


I don't know why I am even responding to your creative fiction scenario in no way applies to what I am talking about.  I worked in the office during a brief period of months when the stock experienced its first minor but sustained dip in returns.

So even those who purchased the stock at the "worst" time weren't getting numbers like you pulled out of your arse.  Literally, all current or previous share purchasers (even those who apparently expect a constant and steady increase in a stock's performance) would have made bank and then some.

My apologies in briefly interrupting your Creative Writing lecture at Fantasytown University, Professor.
 
2022-01-25 1:13:29 PM  

AsparagusFTW: Other than Fark, who didn't see this coming?


Those Fast Money dildos on CNBC?
 
2022-01-25 1:14:58 PM  

maxis_mydog: Moopy Mac: hej: I've been repeatedly assured by Fark financial analysists that there is no inflation, and if there is it's just due to temporary pandemic circumstances, and if it's not temporary then it has nothing to do with printing shiat tons of money to hand out stimmy checks, and if doing that does cause inflation then LOL who cares because only rich stock traders are going to get screwed.

Given inflation is a worldwide phenomenon right now, wouldn't that point to supply chain issues being the primary culprit?

Inflation is a combination phenomena. Too much cash for too few goods. Supply (cash) vs. demand (goods). Since most first world countries have had low interest rates and pumped cash into their economies during the pandemic and the world wide supply chain is hosed due to the pandemic, anybody that passed econ 101 with a C could have seen this coming. The FED has to increase interest rates to keep inflation from reaching unsustainable levels. With increased interest rates, big money will be willing to move their money out of the equity  market  and into fixed income bonds.


Yeah, I heard that exact same refrain every year on Fark.com since 2009.
 
2022-01-25 1:15:43 PM  

NewportBarGuy: AsparagusFTW: Other than Fark, who didn't see this coming?

Those Fast Money dildos on CNBC?


It's funny because certain Fark Business Experts saw this coming in 2009, 2010, 2011, 2012, 2013, 2014, 2015 and 2016. I've even tagged some of them as favorites.
 
2022-01-25 1:18:10 PM  

Moopy Mac: NewportBarGuy: AsparagusFTW: Other than Fark, who didn't see this coming?

Those Fast Money dildos on CNBC?

It's funny because certain Fark Business Experts saw this coming in 2009, 2010, 2011, 2012, 2013, 2014, 2015 and 2016. I've even tagged some of them as favorites.


Dude, I read it on ZeroHedge, so you know it's true.
 
2022-01-25 1:30:47 PM  
TomDooley:
Corporations have been reaping the benefits of low interest rate loans since 2008 and you put the blame on the stimulus checks?

Not just corporations, but individuals as well. I have a sub 3% mortgage. I have a credit card with a sub 10% APR, and most of the rest are a percent or two higher. I don't think in the last 10 years i have ever paid more than 2 or 3% on a car note.

You have all kinds of crazy 0% teaser stuff out there. I just bought a new bed, sure i could have parted with like 8 grand so its not on my balance sheet, but they gave me 3 years 0% interest on it. That shiat adds up when it comes to inflation. If i notice my bank account drop by 8k, i'm going to think twice about going out to dinner or the like.

The problem is there isn't granularity in the fed rate. I'm not sure how the hell you would do it, but everything kind of falls into a big bucket today, and it would be good to be able to move a rate and say, hit mortgages a bit, without jacking credit cards, or car loans, or vice versa.
 
2022-01-25 1:33:38 PM  

rubi_con_man: No, they wouldn't have. 

If I have 100$ and then lose 50$ of it, Buying another 100$ won't affect how that original 100$ performs. 

Let's say I buy a share for 100$, it then craters to $50. I then buy 2 shares for 50$, and the price "doubles".

Well I'm at  300$ for a 200$ buy in. That's not doubling my investment. My Original investment is back to Zero.


Your investment yielded 50%, which is pretty good. No one said it would "double"; that's you moving the goalposts.

You're not very good at math, are you?
 
hej
2022-01-25 1:50:46 PM  

Moopy Mac: Given inflation is a worldwide phenomenon right now, wouldn't that point to supply chain issues being the primary culprit?


There's no denying that it's a big factor.  Hopefully there's also no denying that the fed printing trillions of dollars is the reason that the US is being hit noticeably harder than most other developed countries.

The acceleration of printing money in March 2020 had the desired affect of softening the blow the pandemic had on the US economy (not just stock markets). Coupled with the worldwide supply chain issues caused by a pandemic which has killed tens of millions of people, there will be inflation. Probably relatively short lived.

Basically, what the Fark did people want? What was the alternative?


The amount of stimulus money that was spent was excessive and it was handed out fairly indiscriminately.  It should have been much more limited in size and scope, and spent on helping businesses adapt to operating in the pandemic instead of shutting down, along with helping people at the bottom of the economic totem pole that were disproportionately affected by changes that the pandemic brought.

Instead we got "MERRY CHRISTMAS Y'ALL" so that people with no trouble making ends meet could go blow a few grand on a new big screen tv.  This wasn't for long term economic health, this was to win popularity in the short term.
 
hej
2022-01-25 1:54:29 PM  

TomDooley: hej: I've been repeatedly assured by Fark financial analysists that there is no inflation, and if there is it's just due to temporary pandemic circumstances, and if it's not temporary then it has nothing to do with printing shiat tons of money to hand out stimmy checks, and if doing that does cause inflation then LOL who cares because only rich stock traders are going to get screwed.

Corporations have been reaping the benefits of low interest rate loans since 2008 and you put the blame on the stimulus checks?


I assume you understand the core differences between loans in a closed loop system that get paid back vs money that is manifest out of thin air and freely handed out.
 
2022-01-25 2:20:10 PM  
If you look at healthcare and housing costs, inflation has been a big deal for a while. At least for the non-stonks owning crowd that the government ignores when it comes to economic policy, except by trying to dictate how many will be unemployed at any given time.
 
2022-01-25 2:52:20 PM  

hej: Moopy Mac: Given inflation is a worldwide phenomenon right now, wouldn't that point to supply chain issues being the primary culprit?

There's no denying that it's a big factor.  Hopefully there's also no denying that the fed printing trillions of dollars is the reason that the US is being hit noticeably harder than most other developed countries.


The US always has more inflation than other developed countries, which are constantly battling deflation and relying on zero (or negative) interest rates to have positive inflation growth. 

The acceleration of printing money in March 2020 had the desired affect of softening the blow the pandemic had on the US economy (not just stock markets). Coupled with the worldwide supply chain issues caused by a pandemic which has killed tens of millions of people, there will be inflation. Probably relatively short lived.

Basically, what the Fark did people want? What was the alternative?

The amount of stimulus money that was spent was excessive and it was handed out fairly indiscriminately.  It should have been much more limited in size and scope, and spent on helping businesses adapt to operating in the pandemic instead of shutting down, along with helping people at the bottom of the economic totem pole that were disproportionately affected by changes that the pandemic brought.

Instead we got "MERRY CHRISTMAS Y'ALL" so that people with no trouble making ends meet could go blow a few grand on a new big screen tv.  This wasn't for long term economic health, this was to win popularity in the short term.


I agree completely with some of this. They should have been much more means tested and targeted those that were negatively affected by the pandemic economy and restrictions (less stimulus checks and more relief checks). But this is a different issue than the opening of the federal reserve spigot which began in March 2020. In fact, that the stimulus checks WEREN'T targeted means that they probably had relatively little affect on inflation. Also, as an aside, the initial stimulus checks were $1200 in April 2020. Followed by $600 in December 2020 and $1400 in March 2021.
 
2022-01-25 2:55:13 PM  

guinsu: If you look at healthcare and housing costs, inflation has been a big deal for a while. At least for the non-stonks owning crowd that the government ignores when it comes to economic policy, except by trying to dictate how many will be unemployed at any given time.


Don't forget education. So basically the things necessary to keep you healthy, a roof over your head and a good future.
 
2022-01-25 3:03:09 PM  

hej: There's no denying that it's a big factor.  Hopefully there's also no denying that the fed printing trillions of dollars is the reason that the US is being hit noticeably harder than most other developed countries.


The Fed printing trillions of dollars resulted in two (2) quarters of 1%+ (4%+ annualized) inflation between 2009 and 2019.

Moopy Mac: They should have been much more means tested and targeted those that were negatively affected by the pandemic economy and restrictions (less stimulus checks and more relief checks).


So... they should only have gone to people who would spend the money?
 
2022-01-25 3:13:59 PM  

Arkanaut: hej: There's no denying that it's a big factor.  Hopefully there's also no denying that the fed printing trillions of dollars is the reason that the US is being hit noticeably harder than most other developed countries.

The Fed printing trillions of dollars resulted in two (2) quarters of 1%+ (4%+ annualized) inflation between 2009 and 2019.

Moopy Mac: They should have been much more means tested and targeted those that were negatively affected by the pandemic economy and restrictions (less stimulus checks and more relief checks).

So... they should only have gone to people who would spend the money?


They should have gone to the people that NEEDED the money, which is an important difference. And as you imply, on a dollar for dollar basis, it would have been a much more effective stimulus plan as well.
 
2022-01-25 3:21:09 PM  

Broom: rubi_con_man: No, they wouldn't have. 

If I have 100$ and then lose 50$ of it, Buying another 100$ won't affect how that original 100$ performs. 

Let's say I buy a share for 100$, it then craters to $50. I then buy 2 shares for 50$, and the price "doubles".

Well I'm at  300$ for a 200$ buy in. That's not doubling my investment. My Original investment is back to Zero.

Your investment yielded 50%, which is pretty good. No one said it would "double"; that's you moving the goalposts.

You're not very good at math, are you?


My two shares bought at 50$ doubled. 
My share bought at 100$ did 0%
 
2022-01-25 3:57:20 PM  

Moopy Mac: hej: Moopy Mac: Given inflation is a worldwide phenomenon right now, wouldn't that point to supply chain issues being the primary culprit?

There's no denying that it's a big factor.  Hopefully there's also no denying that the fed printing trillions of dollars is the reason that the US is being hit noticeably harder than most other developed countries.

The US always has more inflation than other developed countries, which are constantly battling deflation and relying on zero (or negative) interest rates to have positive inflation growth.


Of course we do.  It's a factor of our currency being the world's Reserve Currency, and with it getting stronger and more used over time.  This is also why we will always have a trade deficit with the world.

That is, it is common, and becoming increasingly so, to perform transactions with dollars even though neither party is American or located in America.  The US dollar is frequently used in many a banana republic where the local currency is worthless or nearly so.  The more this happens, the higher the demand for the dollar.  Tada, inflation.

This is also why imports into the US are relatively cheap and exports are relatively expensive-because the higher than typical demand for the dollar makes it so that labor priced in dollars is more expensive than it should be.
 
2022-01-25 4:00:41 PM  

Moopy Mac: They should have gone to the people that NEEDED the money, which is an important difference. And as you imply, on a dollar for dollar basis, it would have been a much more effective stimulus plan as well.


Doing it the way they did it definitely kept the economy from crashing, was proven to lift many people from poverty (even if temporarily), and didn't have the enormous costs, slow rollout, spotty coverage, and unpopularity of a means tested stimulus. Not to mention the biggest checks went to the unemployed, who often saw better than poverty money for the first time in their lives.

It was the best thing that happened in this country for millions of people, during the worst crisis since 2008. And it has helped drive wages up.

The only thing wrong with it is that they couldn't find a way to keep the most effective parts going, like the modified child tax credit scheme which lifted millions of kids out of poverty.
 
2022-01-25 4:07:47 PM  

Moopy Mac: Basically, what the Fark did people want? What was the alternative?


It could have been better targeted if we just cool our jets for a minute.

Stuff like eviction moratoriums instead of direct relief, and changing the entire game with landlords has an impact on rents moving forward. Stimulus to people who weren't impacted by the pandemic, or hell, even saved money during it, has an impact on inflation. Shutdowns, where not absolutely necessary, have an impact on PPP funds. Opening up unemployment to people who took a gig job knowing the risks and never paid into the system had an impact.

I get it, we needed to act quick and boldly, it would never be perfect. I sort of liked the canadian system of "I need money, click here, we will worry about if you really needed it later" but that would never fly in the US, and i suspect a lot of canadians are kicking themselves in the ass one way or another for it.

As a nation we all continue to think the solutions to our problem are simple and can be solved in a day if just everyone listens to us, and continue to act like that. Its true for all sides and lots of people. Obviously that isn't the case. Sometimes shiat sucks. We shouldn't try and pretend it doesn't, we should work on making it suck less, or be less common.
 
2022-01-25 4:09:28 PM  
Ah yes, an inflation thread with the standard Fed responses.

I too am annoyed!  The Fed has essentially deleted the word 'deflation' from the US vocabulary.  And the lack of wild oscillations has made the economy so very boring.  Truly, the world has never known a villain so nefarious.
 
2022-01-25 4:20:54 PM  

Hawk the Hawk: Ah yes, an inflation thread with the standard Fed responses.

I too am annoyed!  The Fed has essentially deleted the word 'deflation' from the US vocabulary.  And the lack of wild oscillations has made the economy so very boring.  Truly, the world has never known a villain so nefarious.


lets go back to the gold standard!

don't you have like, a coin forum you should be on?
 
2022-01-25 4:30:12 PM  

LineNoise: Hawk the Hawk: Ah yes, an inflation thread with the standard Fed responses.

I too am annoyed!  The Fed has essentially deleted the word 'deflation' from the US vocabulary.  And the lack of wild oscillations has made the economy so very boring.  Truly, the world has never known a villain so nefarious.

lets go back to the gold standard!

don't you have like, a coin forum you should be on?


Your sarcasm detector is broken.
 
2022-01-25 4:30:45 PM  

LineNoise: Hawk the Hawk: Ah yes, an inflation thread with the standard Fed responses.

I too am annoyed!  The Fed has essentially deleted the word 'deflation' from the US vocabulary.  And the lack of wild oscillations has made the economy so very boring.  Truly, the world has never known a villain so nefarious.

lets go back to the gold standard!

don't you have like, a coin forum you should be on?


Exactly!  The gold standard is the gold standard of gold standards!

Fark user imageView Full Size
 
2022-01-25 4:32:21 PM  

LineNoise: Moopy Mac: Basically, what the Fark did people want? What was the alternative?

It could have been better targeted if we just cool our jets for a minute.

Stuff like eviction moratoriums instead of direct relief, and changing the entire game with landlords has an impact on rents moving forward. Stimulus to people who weren't impacted by the pandemic, or hell, even saved money during it, has an impact on inflation. Shutdowns, where not absolutely necessary, have an impact on PPP funds. Opening up unemployment to people who took a gig job knowing the risks and never paid into the system had an impact.

I get it, we needed to act quick and boldly, it would never be perfect. I sort of liked the canadian system of "I need money, click here, we will worry about if you really needed it later" but that would never fly in the US, and i suspect a lot of canadians are kicking themselves in the ass one way or another for it.

As a nation we all continue to think the solutions to our problem are simple and can be solved in a day if just everyone listens to us, and continue to act like that. Its true for all sides and lots of people. Obviously that isn't the case. Sometimes shiat sucks. We shouldn't try and pretend it doesn't, we should work on making it suck less, or be less common.


Remember, the first two Covid bills were passed with a Republican led Senate and a crazy Republican President.  Compromises had to be made to get them passed.
 
2022-01-25 5:15:27 PM  

adamatari: Moopy Mac: They should have gone to the people that NEEDED the money, which is an important difference. And as you imply, on a dollar for dollar basis, it would have been a much more effective stimulus plan as well.

Doing it the way they did it definitely kept the economy from crashing, was proven to lift many people from poverty (even if temporarily), and didn't have the enormous costs, slow rollout, spotty coverage, and unpopularity of a means tested stimulus. Not to mention the biggest checks went to the unemployed, who often saw better than poverty money for the first time in their lives.

It was the best thing that happened in this country for millions of people, during the worst crisis since 2008. And it has helped drive wages up.

The only thing wrong with it is that they couldn't find a way to keep the most effective parts going, like the modified child tax credit scheme which lifted millions of kids out of poverty.


1) Why would the stimulus checks for the unemployed be any larger than for the employed (with the exception of those means tested out)?
 
2022-01-25 5:16:45 PM  

LineNoise: Moopy Mac: Basically, what the Fark did people want? What was the alternative?

It could have been better targeted if we just cool our jets for a minute.

Stuff like eviction moratoriums instead of direct relief, and changing the entire game with landlords has an impact on rents moving forward. Stimulus to people who weren't impacted by the pandemic, or hell, even saved money during it, has an impact on inflation. Shutdowns, where not absolutely necessary, have an impact on PPP funds. Opening up unemployment to people who took a gig job knowing the risks and never paid into the system had an impact.

I get it, we needed to act quick and boldly, it would never be perfect. I sort of liked the canadian system of "I need money, click here, we will worry about if you really needed it later" but that would never fly in the US, and i suspect a lot of canadians are kicking themselves in the ass one way or another for it.

As a nation we all continue to think the solutions to our problem are simple and can be solved in a day if just everyone listens to us, and continue to act like that. Its true for all sides and lots of people. Obviously that isn't the case. Sometimes shiat sucks. We shouldn't try and pretend it doesn't, we should work on making it suck less, or be less common.


All of these things would be in addition to the loosened monetary policy, not instead of it.
 
2022-01-25 5:18:26 PM  

Hawk the Hawk: Ah yes, an inflation thread with the standard Fed responses.

I too am annoyed!  The Fed has essentially deleted the word 'deflation' from the US vocabulary.  And the lack of wild oscillations has made the economy so very boring.  Truly, the world has never known a villain so nefarious.


There really haven't been many "standard Fed responses" in this thread. So, cool story bro?
 
2022-01-25 5:19:43 PM  

adamatari: Moopy Mac: They should have gone to the people that NEEDED the money, which is an important difference. And as you imply, on a dollar for dollar basis, it would have been a much more effective stimulus plan as well.

Doing it the way they did it definitely kept the economy from crashing, was proven to lift many people from poverty (even if temporarily), and didn't have the enormous costs, slow rollout, spotty coverage, and unpopularity of a means tested stimulus. Not to mention the biggest checks went to the unemployed, who often saw better than poverty money for the first time in their lives.

It was the best thing that happened in this country for millions of people, during the worst crisis since 2008. And it has helped drive wages up.


And this is why we're talking about inflation so much--because the government desperately needs an excuse for why they refuse to help us any more.

I've gone from "Well at least the government is helping me get through this" to "I sure as f*ck hope this pandemic subsides enough for me to start working again because I like not being homeless" and it f*cking sucks.
 
2022-01-25 5:22:47 PM  

Moopy Mac: Hawk the Hawk: Ah yes, an inflation thread with the standard Fed responses.

I too am annoyed!  The Fed has essentially deleted the word 'deflation' from the US vocabulary.  And the lack of wild oscillations has made the economy so very boring.  Truly, the world has never known a villain so nefarious.

There really haven't been many "standard Fed responses" in this thread. So, cool story bro?


Oh the usual ramblings are present.  But hey, you don't seem to be saying anything particularly wacky, so... Good job, bruv?
 
Displayed 50 of 52 comments


Oldest | « | 1 | 2 | » | Newest | Show all


View Voting Results: Smartest and Funniest

This thread is closed to new comments.

Continue Farking




On Twitter


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.