- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Powell: Fed can maintain higher rates for "as long as needed"
Posted on 4/16/24 at 7:24 pm to stout
Posted on 4/16/24 at 7:24 pm to stout
I say all the following as someone who works for one the nations largest wholesalers, if not the largest depending on metric and work intimately with manufacturers. I believe we are in a bit of a vicious cycle where manufacturers are increasing prices because debt is expensive, but there is no scale back in manufacturing because of the lack of shift in consumer behavior. The scale i.e. interest rates needs to tip one way or the other, increase rates high enough to actually drives change in discretionary spending or reduce rates to lower the debt burden on manufacturers, reducing the price of goods (which likely wont happen).
2
Posted on 4/16/24 at 7:27 pm to cbree88
quote:
I’m starting to wonder what kind of interest rate it’s going to take to stop businesses and consumers from borrowing more money, spending it all, and then going back for more. 10%? 12%?
If it hits 10%-12%, I’m putting every cent I have in 30 year treasuries.
Posted on 4/16/24 at 7:27 pm to funnystuff
quote:importing 20 million new consumers helps too
We’re going to have demand driven moderate inflation for the next decade
Posted on 4/16/24 at 7:33 pm to GeauxOn
I also truly think the old croons in the FED do not understand the purchasing behaviors of the new generation. Saving money is not a priority for the younger generations as they have pretty well accepted they will be working until they're 70+ with no social security to rely on and they also live in the keeping up with the Jones of social media society that promotes immediate satisfaction of purchases. In short debt is something everyone lives with and we'll figure it out later as long as we can make our monthly payments
Posted on 4/16/24 at 7:33 pm to funnystuff
quote:
People need to expect 3-5% as our new baseline, and prepare accordingly
That’s a damn shame, but it’s what happens when you throw economics completely out of the window when responding to a crisis. The responses to the COVID pandemic are what caused all of this. Shutting businesses down, randomly injecting trillions of dollars into the economy, disrupting supply chains, and being completely fiscally and monetarily irresponsible completely fricked up our economy and it hasn’t been normal since.
Posted on 4/16/24 at 7:41 pm to notiger1997
quote:
Now I’m confused
He means that the Federal RESERVE doesn't regulate fossil fuels.
Posted on 4/16/24 at 8:19 pm to cbree88
quote:
That’s a damn shame, but it’s what happens when you throw economics completely out of the window when responding to a crisis. The responses to the COVID pandemic are what caused all of this. Shutting businesses down, randomly injecting trillions of dollars into the economy, disrupting supply chains, and being completely fiscally and monetarily irresponsible completely fricked up our economy and it hasn’t been normal since.
While I agree we got spoiled to suppressed and historically low rates for far to long. Hell the fed funds rate went negative briefly. That wasn't something realistic, healthy, or sustainable.
Posted on 4/16/24 at 8:21 pm to Powerman
quote:
Could be a decade before we ever see sub 4% mortgage rates again for all we know
A decade?
I wouldn't be surprised if we never see that again and it's not a bad thing
Posted on 4/16/24 at 9:58 pm to stout
I honestly believe most of the problem is rates need to be even higher but they know the current generation of American people would near riot over 10% mortgage rates
The truth is historically that's not that high of a rate relatively speaking and after going 20 years with near 0% rates it's going to take something significant to reverse course
The truth is historically that's not that high of a rate relatively speaking and after going 20 years with near 0% rates it's going to take something significant to reverse course
Posted on 4/16/24 at 10:16 pm to WildTchoupitoulas
quote:
Yep, the coming recession should cure this inflation.
I’m ready for some Jimmy Carter style stagflation
Posted on 4/16/24 at 10:21 pm to stout
I thought the WSJ and other progressive rags told us our negative view of the economy was misinformed and wrong.
Posted on 4/16/24 at 10:23 pm to fr33manator
quote:
You wish we were building castles for Norman lords and drinking a gallon of beer a day while performing manual labor?
Would that be so bad?
Good beer.
Good workout.
Good sunshine.
Sounds like what men prefer to do on the weekends nowadays.
Posted on 4/16/24 at 10:31 pm to tigerpimpbot
quote:
Jimmy Carter style stagflation
Curiously, Carter is the one who appointed Paul Volcker.
Posted on 4/16/24 at 10:59 pm to PerplenGold
Lowering rates to zero was wildly irresponsible. Everyone with a mortgage refinanced, which freed up a tremendous amount of money for consumer spending and/or investing.
On top of that, the wealthier were using free money to hoover up affordable homes to turn into rental units.
That's two (of dozens) reasons why raising rates won't immediately cure inflation. Mostly what they accomplished was to screw first-time homebuyers... who are now renting from all the boomers who bought all the previously-affordable housing.
On top of that, the wealthier were using free money to hoover up affordable homes to turn into rental units.
That's two (of dozens) reasons why raising rates won't immediately cure inflation. Mostly what they accomplished was to screw first-time homebuyers... who are now renting from all the boomers who bought all the previously-affordable housing.
Posted on 4/16/24 at 11:56 pm to WildTchoupitoulas
quote:
They need to raise the rate, not just maintain it, if they want inflation to come down.
They could raise the rate to 100% and inflation won't come down if they keep printing billions for Ukraine and Israel.
This post was edited on 4/17/24 at 12:04 am
Posted on 4/17/24 at 12:11 am to Gideon Swashbuckler
quote:
inflation won't come down if they keep printing billions on Ukraine and Israel.
The Ukraine aid to date hasn't amounted to even 0.5% of the current US money supply.
Posted on 4/17/24 at 3:13 am to ninthward
quote:
they are so fricking stupid, raise rates while at the same time regulating the piss out of fossil fuels,
Which new regs are you referring to?
We are producing more oil than any country ever in human history.
Posted on 4/17/24 at 5:10 am to WildTchoupitoulas
quote:
The Ukraine aid to date hasn't amounted to even 0.5% of the current US money supply.
Posted on 4/17/24 at 5:59 am to el Gaucho
Give me my 10% CDs!
Posted on 4/17/24 at 6:06 am to BZ504
quote:
We need to send billions more to Ukraine.
With higher interest rates and the national debt so high, it is increasing the interest due on the debt.
Eventually, interest is going to be the largest federal expenditure before defense spending and Social Security.
Page 3 of 6
Popular
Back to top
Follow TigerDroppings for LSU Football News