BigRedBuster Posted May 4, 2022 Author Share Posted May 4, 2022 And people thought inflation was just a temporary blip on the radar screen. 1 Link to comment
Archy1221 Posted May 4, 2022 Share Posted May 4, 2022 9 minutes ago, BigRedBuster said: And people thought inflation was just a temporary blip on the radar screen. Yep, possibly worst Fed Chair ever. 1 Link to comment
JJ Husker Posted May 4, 2022 Share Posted May 4, 2022 5 minutes ago, BigRedBuster said: And people thought inflation was just a temporary blip on the radar screen. I may not understand these things too well but I really don’t see a half point doing much of anything to curb inflation. I know theoretically that’s how it’s supposed to work but when you’ve had historically low interest rates for as long as we have, doesn’t seem like half a percent will do diddly squat. I suppose it may keep some poorer people from financing larger purchases they couldn’t afford to begin with but seems like more drastic measures will be needed. 1 Link to comment
BigRedBuster Posted May 4, 2022 Author Share Posted May 4, 2022 8 minutes ago, JJ Husker said: I may not understand these things too well but I really don’t see a half point doing much of anything to curb inflation. I know theoretically that’s how it’s supposed to work but when you’ve had historically low interest rates for as long as we have, doesn’t seem like half a percent will do diddly squat. I suppose it may keep some poorer people from financing larger purchases they couldn’t afford to begin with but seems like more drastic measures will be needed. I think it has to do with the fact you can't raise it too much and too fast otherwise you could easily plunge us into recession. The idea is that you want to slow it down so that it's a soft landing. The expectation is that they are going to raise it 3% this year. LINK So, they do it a little at at time. It's like if your baby is sitting in cold bath water, you're not just going to turn scalding hot water on and pour a bunch in. You're going to pour a little in at a time till it hits the right temperature. Quote Expectations are growing that the U.S. central bank will hike interest rates by a whopping 3 percentage points this year. By sheer number of hikes, that would be the most active Fed since 2005. But by the size and magnitude of each hike, it would be even more notable. The Fed hasn’t adjusted interest rates that much since the 1980s — the last time inflation became a major problem for the financial system. 1 Link to comment
BigRedBuster Posted May 4, 2022 Author Share Posted May 4, 2022 12 minutes ago, Archy1221 said: Yep, possibly worst Fed Chair ever. It's a total mess. Everything from over heating the economy over the last 5 years to recognizing it too late. 1 Link to comment
Archy1221 Posted May 4, 2022 Share Posted May 4, 2022 7 minutes ago, BigRedBuster said: years to recognizing it too late This is where I’m at with the Fed too. Rates should have been going up long before this. And don’t get me started on the QE 3 Link to comment
BigRedBuster Posted May 4, 2022 Author Share Posted May 4, 2022 4 minutes ago, Archy1221 said: This is where I’m at with the Fed too. Rates should have been going up long before this. And don’t get me started on the QE And tax cuts...and tariffs...and...and...and..... 1 Link to comment
Archy1221 Posted May 4, 2022 Share Posted May 4, 2022 16 minutes ago, BigRedBuster said: And tax cuts...and tariffs...and...and...and..... What’s wrong with the tax cuts? The government doesn’t have a revenue problem. Tariffs I can see how people disagree. 2 Link to comment
BigRedBuster Posted May 4, 2022 Author Share Posted May 4, 2022 2 minutes ago, Archy1221 said: What’s wrong with the tax cuts? The government doesn’t have a revenue problem. Tariffs I can see how people disagree. Because they weren’t needed to stimulate the economy like they were sold as. When you need to stimulate, use them then. The way it is, it’s just added to the problem. Contrary to MAGA belief, the economy wasn’t a major problem in 2016. We had 7 years of decent growth. I said at the time, I would prefer that over fast growth and then a bust. Well, here we are. Link to comment
Archy1221 Posted May 4, 2022 Share Posted May 4, 2022 16 minutes ago, BigRedBuster said: Contrary to MAGA belief, the economy wasn’t a major problem in 2016. Why did HRC run in fixing the economy too? 16 minutes ago, BigRedBuster said: Because they weren’t needed to stimulate the economy like they were sold as. Whether they were needed or not, the government doesn’t have a revenue issue, it has a spending issue. Having people control a bit more of their own money is a good thing not a bad thing. If not for Covid, they were on track to bring in more revenue than was lost with the cuts. Another good thing. 19 minutes ago, BigRedBuster said: then a bust. Tax cuts didn’t cause the bust. 2 Link to comment
BigRedBuster Posted May 4, 2022 Author Share Posted May 4, 2022 8 minutes ago, Archy1221 said: Why did HRC run in fixing the economy too? Because she’s stupid too. 9 minutes ago, Archy1221 said: Tax cuts didn’t cause the bust. Didn’t say it did on its own. Link to comment
BigRedBuster Posted May 4, 2022 Author Share Posted May 4, 2022 13 minutes ago, Archy1221 said: Whether they were needed or not, the government doesn’t have a revenue issue, it has a spending issue. Having people control a bit more of their own money is a good thing not a bad thing. If not for Covid, they were on track to bring in more revenue than was lost with the cuts. Another good thing. My comment has nothing to do with the budget. Link to comment
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