I genuinely don't understand these rate hikes

[Anonymous]

Anonymous wrote:How do you not understand multiple-trillion dollars stimuli + expansion of money supply by almost double + a bloated Fed balance sheet that grew to the size of $9,000,000,000,000?

Put down the CNN/partisan talking points and look at the common sense numbers. Maybe, just maybe there was too much money, liquidity, and access to easy money in the system? Supply is out of whack not only due to supply side issues, but also because demand is so strong even in the face of those supply side issues due to far too much money in the system.

You thought those multiple rounds of trillion dollar plus stimuli had no consequences?

This. The jig is up. I was so angry when they were giving out free money like candy. It's payback time. How people could not see this coming is beyond me.

[Anonymous]

The real interest rate is the interest rate minus inflation. It's currently negative in many investments. That's bad because your purchasing power is decreasing over time with these investments. Negative real interest rates encourages borrowing, whch in turn, increases inflation by creating more dollars.

https://www.investopedia.com/terms/r/realinterestrate.asp

[Anonymous]

Anonymous wrote:They don't know what they are doing. Biden is an idiot as well.

I would like you to at least entertain the idea that the economists at the Fed do indeed know what they are doing, and that it is you who are ignorant.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How do you not understand multiple-trillion dollars stimuli + expansion of money supply by almost double + a bloated Fed balance sheet that grew to the size of $9,000,000,000,000?

Put down the CNN/partisan talking points and look at the common sense numbers. Maybe, just maybe there was too much money, liquidity, and access to easy money in the system? Supply is out of whack not only due to supply side issues, but also because demand is so strong even in the face of those supply side issues due to far too much money in the system.

You thought those multiple rounds of trillion dollar plus stimuli had no consequences?

This. The jig is up. I was so angry when they were giving out free money like candy. It's payback time. How people could not see this coming is beyond me.

Many of those people would have suffered without that money. A lot of suffering. And no one argues that that money didn't force all an immediate recession.

Your choices are recession or inflation. The stimulus only contributes a couple percentage points to current inflation. The rest is global. Further, inflation will generally resolve easier than a recession will.

Sorry you were angry that the government had to make choices to help its citizens

[Anonymous]

Anonymous wrote:

Anonymous wrote:They don't know what they are doing. Biden is an idiot as well.

I would like you to at least entertain the idea that the economists at the Fed do indeed know what they are doing, and that it is you who are ignorant.

And that managing a globalized economy in the trails of a global pandemic might just have a tad bit of uncertainty and complexity that is hard to predict and manage. Especially in a politicized democracy where you can't just do what makes sense but have to do it through people with wildly varying views and agendas.

[Anonymous]

In my area the higher interest rates aren't doing much to cool down the real estate market. In my neighborhood in Potomac, houses are still selling within a few days of going on the market. People aren't bidding hundreds of thousands of dollars over asking, but they are still selling for asking price or slightly more.

[Anonymous]

Anonymous wrote:In my area the higher interest rates aren't doing much to cool down the real estate market. In my neighborhood in Potomac, houses are still selling within a few days of going on the market. People aren't bidding hundreds of thousands of dollars over asking, but they are still selling for asking price or slightly more.

Wait for after school registration ends.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How do you not understand multiple-trillion dollars stimuli + expansion of money supply by almost double + a bloated Fed balance sheet that grew to the size of $9,000,000,000,000?

Put down the CNN/partisan talking points and look at the common sense numbers. Maybe, just maybe there was too much money, liquidity, and access to easy money in the system? Supply is out of whack not only due to supply side issues, but also because demand is so strong even in the face of those supply side issues due to far too much money in the system.

You thought those multiple rounds of trillion dollar plus stimuli had no consequences?

This. The jig is up. I was so angry when they were giving out free money like candy. It's payback time. How people could not see this coming is beyond me.

Agree. It was painfully obvious a long time ago. I could see inflation coming and quickly bought a new car, finished decorating our new house and booked travel reservations.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you not understand multiple-trillion dollars stimuli + expansion of money supply by almost double + a bloated Fed balance sheet that grew to the size of $9,000,000,000,000?

Put down the CNN/partisan talking points and look at the common sense numbers. Maybe, just maybe there was too much money, liquidity, and access to easy money in the system? Supply is out of whack not only due to supply side issues, but also because demand is so strong even in the face of those supply side issues due to far too much money in the system.

You thought those multiple rounds of trillion dollar plus stimuli had no consequences?

This. The jig is up. I was so angry when they were giving out free money like candy. It's payback time. How people could not see this coming is beyond me.

Many of those people would have suffered without that money. A lot of suffering. And no one argues that that money didn't force all an immediate recession.

Your choices are recession or inflation. The stimulus only contributes a couple percentage points to current inflation. The rest is global. Further, inflation will generally resolve easier than a recession will.

Sorry you were angry that the government had to make choices to help its citizens

Without those COVID measures, which included billions of free money for businesses, it wouldn't have been a recession it would have been a full on global depression and deflationary spiral. That was the choice. Deflation or inflation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you not understand multiple-trillion dollars stimuli + expansion of money supply by almost double + a bloated Fed balance sheet that grew to the size of $9,000,000,000,000?

Put down the CNN/partisan talking points and look at the common sense numbers. Maybe, just maybe there was too much money, liquidity, and access to easy money in the system? Supply is out of whack not only due to supply side issues, but also because demand is so strong even in the face of those supply side issues due to far too much money in the system.

You thought those multiple rounds of trillion dollar plus stimuli had no consequences?

This. The jig is up. I was so angry when they were giving out free money like candy. It's payback time. How people could not see this coming is beyond me.

Many of those people would have suffered without that money. A lot of suffering. And no one argues that that money didn't force all an immediate recession.

Your choices are recession or inflation. The stimulus only contributes a couple percentage points to current inflation. The rest is global. Further, inflation will generally resolve easier than a recession will.

Sorry you were angry that the government had to make choices to help its citizens

Without those COVID measures, which included billions of free money for businesses, it wouldn't have been a recession it would have been a full on global depression and deflationary spiral. That was the choice. Deflation or inflation.

Alternatively we could have not taken covid measures that in hindsight accomplished very little.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you not understand multiple-trillion dollars stimuli + expansion of money supply by almost double + a bloated Fed balance sheet that grew to the size of $9,000,000,000,000?

Put down the CNN/partisan talking points and look at the common sense numbers. Maybe, just maybe there was too much money, liquidity, and access to easy money in the system? Supply is out of whack not only due to supply side issues, but also because demand is so strong even in the face of those supply side issues due to far too much money in the system.

You thought those multiple rounds of trillion dollar plus stimuli had no consequences?

This. The jig is up. I was so angry when they were giving out free money like candy. It's payback time. How people could not see this coming is beyond me.

Many of those people would have suffered without that money. A lot of suffering. And no one argues that that money didn't force all an immediate recession.

Your choices are recession or inflation. The stimulus only contributes a couple percentage points to current inflation. The rest is global. Further, inflation will generally resolve easier than a recession will.

Sorry you were angry that the government had to make choices to help its citizens

Without those COVID measures, which included billions of free money for businesses, it wouldn't have been a recession it would have been a full on global depression and deflationary spiral. That was the choice. Deflation or inflation.

Alternatively we could have not taken covid measures that in hindsight accomplished very little.

Nope because when the hospitals filled up and people were dying in large numbers, people stayed home anyway. Without the pre vaccine indoor lockdowns during surges the death toll would have been even more horrific.

[Anonymous]

My concern is that all the time tested economic models don’t factor in the pandemic and the modern globally connected economy. Higher rates means businesses have less access to money to increase supply. In some industries this doesn’t matter because the components needed come from countries that are far behind on their orders. For businesses, the only option right now is to hang on to as high a price as you can charge with wider profit margins than increase your supply, hoping to be able to take consumers from your competitors by offering lower prices.

[Anonymous]

Anonymous wrote:In my area the higher interest rates aren't doing much to cool down the real estate market. In my neighborhood in Potomac, houses are still selling within a few days of going on the market. People aren't bidding hundreds of thousands of dollars over asking, but they are still selling for asking price or slightly more.

It's probably difficult to measure a nationwide effect by looking out your window.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you not understand multiple-trillion dollars stimuli + expansion of money supply by almost double + a bloated Fed balance sheet that grew to the size of $9,000,000,000,000?

Put down the CNN/partisan talking points and look at the common sense numbers. Maybe, just maybe there was too much money, liquidity, and access to easy money in the system? Supply is out of whack not only due to supply side issues, but also because demand is so strong even in the face of those supply side issues due to far too much money in the system.

You thought those multiple rounds of trillion dollar plus stimuli had no consequences?

This. The jig is up. I was so angry when they were giving out free money like candy. It's payback time. How people could not see this coming is beyond me.

Many of those people would have suffered without that money. A lot of suffering. And no one argues that that money didn't force all an immediate recession.

Your choices are recession or inflation. The stimulus only contributes a couple percentage points to current inflation. The rest is global. Further, inflation will generally resolve easier than a recession will.

Sorry you were angry that the government had to make choices to help its citizens

Without those COVID measures, which included billions of free money for businesses, it wouldn't have been a recession it would have been a full on global depression and deflationary spiral. That was the choice. Deflation or inflation.

Alternatively we could have not taken covid measures that in hindsight accomplished very little.

Nope because when the hospitals filled up and people were dying in large numbers, people stayed home anyway. Without the pre vaccine indoor lockdowns during surges the death toll would have been even more horrific.

Yup. The demand shock was separate and not caused by government.

[Anonymous]

Anonymous wrote:

Anonymous wrote:In my area the higher interest rates aren't doing much to cool down the real estate market. In my neighborhood in Potomac, houses are still selling within a few days of going on the market. People aren't bidding hundreds of thousands of dollars over asking, but they are still selling for asking price or slightly more.

It's probably difficult to measure a nationwide effect by looking out your window.

Troof