[tongue in cheek] ... So the bottom line take away is to stop giving people free money and injecting the economy with cash so they will all go out and get a job to support themselves. Guess if nobody had any money to spend, then prices of goods will have to go down. If everyone was a millionaire, a loaf of bread might cost $100. Might want to abolish the stock market too so people don't get richer, lol.
Investing Strategies. What is your move?
- Thread starter PimTac
- Start date
I enjoyed and learned from your posts jetman. You blame excess money printing as the main "straw on the camel's back" that's driving our predicament.
- Do we have any guess what might have happened over the past 2 years if this extra money was not injected into our economy? Or if it had been done better?
- Even if the U.S. would have managed the past 2 years better, would it be enough to avoid the effects of the rest of the global situation?
You guys have been saying that a market correction (recession) was due 4 years ago. I've asked before: are painless recessions even possible?
EDIT: I guess not. Your quote sums it up: "to cure our addiction to easy money, we need to endure some pain. It's the only way to real recovery."
- Do we have any guess what might have happened over the past 2 years if this extra money was not injected into our economy? Or if it had been done better?
- Even if the U.S. would have managed the past 2 years better, would it be enough to avoid the effects of the rest of the global situation?
You guys have been saying that a market correction (recession) was due 4 years ago. I've asked before: are painless recessions even possible?
EDIT: I guess not. Your quote sums it up: "to cure our addiction to easy money, we need to endure some pain. It's the only way to real recovery."
Low interest rates mean a good stock market.
Tv is not a good source for the truth.I follow the trucking industry VERY closely, I’ve mentioned this a few times over the years here on BITOG. The entire American economy revolves around trucks. Truckers see the economy change before its even mentioned on the news or financial channels.
What do CB talking, gear shifting, jake braking truckers know about the economy that the important folks on TV are refusing to acknowledge ?
alarmguy,
I disagree with you that households are flush with cash.
A good 50% of the country is living paycheck to paycheck and have less than $2000 cash in the bank for an unexpected emergency. Like I said before, an exponential increase in credit card use and balances now that their stimulus cash has dried up and folks have no other choice than to use credit cards to make ends meet.
Consumers have no other option than to “pay extra” for everyday needs like: food, housing, gasoline, utilities, baby formula, diapers, clothes, eyeglasses, pharmacy medications, vehicle repairs / maintenance, etc….
I do agree with you that we need a lot more manufacturing here in the USA, but unfortunately that will increase the prices of everything made here compared to overseas manufacturing.
The ‘Walmart-ification’ of our economy started over 50 years ago….
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Housing affordability is the monthly payment. House payments have gone up considerably.
Low interest rates are "the alcohol" for the addict.
Yes temporarily, but with high inflation (a result of 40% more money, M2), at some point the consumer (70% of gdp) will stop spending, businesses lay people off because people aren't spending, credit defaults rise, lending stops, valuations drop, stocks drop.
Not necessarily in that order
What is? ... all information sources come from people, so you need to know what people/sources are more truthful than others, and what sources are agenda driven ... which it seems many people have a tough time detecting.
Some unemployed folks were buying new vehicles during the shutdown.
Did NOT pay rent to landlord or stopped paying mortgage / property taxes.
Some folks getting $1000 a week to stay home and not work.
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Like some folks have been raising their kids, just give them stuff that they didn't earn, and don't require anything from them. And the kids complain.
And then they go thru life thinking their "entitled".
The WSJ sees signs that inflation may have peaked. We shall see.
I hopefully we see $2.39 gallon gas in the coming weeks now that inflation may have peaked…..
Stock market is still too high and needs to go down another 30-40%.
Next 3 rate hikes need to be 75 bps.
https://www.freightwaves.com/news/a...ys-plans-for-at-least-16-warehouses-this-year
Another sign economy is slowing down.
70% of America‘s GDP is consumer spending.
People are definitely curbing their spending habits on non necessary junk from Amazon.
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Another sign economy is slowing down.
70% of America‘s GDP is consumer spending.
People are definitely curbing their spending habits on non necessary junk from Amazon.
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Nomura says most major global economies are headed into recession.
https://www.cnbc.com/2022/07/05/us-...in-recession-over-next-12-months-nomura-.html
https://www.cnbc.com/2022/07/05/us-...in-recession-over-next-12-months-nomura-.html
The US$ continues to strengthen vs other major currencies (euro, pound, etc). Commodities prices move inversely to the US$. On top of that demand (demand destruction) is also down for most commodities as the consummer slows their spending.
Corporate earnings need to be lowered.
Corporate earnings need to be lowered.
I've noted PM's in an almost imperceptive manner precede the relative strength of the US$ by dipping. Hence my buying started last few weeks. Not any kind huge life savings type, but real delivered metal in troy ounces. Ag, Au, Pt whomever has the lower prices and less abusive premiums. WalMart leads the way most of the time for Ag, Au. Pt is difficult, stupid premia everywhere - but price has been running at 50% Au price (2X inverse)
Remember metal is metal, dollars inflate (or deflate) - buying metal today with "stronger" $ - later will take more or be worth more of those weaker dollars (just another way to look at it)
PM's are NOT really an investment that works FOR you is another way to think about it. Protection/insurance. But pays no interest, sure you own it but no dividends or growth.
Plus, if and when the time comes that you want to sell it then that opens up a lot of possible issues including safety.
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