The solution is easy, but we all want bailouts. Savers deserve to get paid now. Millions and millions of us sacrificed. Thank you FED for finally making it right.
Fed is not trying to "make things right." It, as usual, is scrambling to correct problems it created. Maybe with no FED a free market would not have such problems. LOL
Natural forces of supply and demand are the best regulators on earth.
The solution is easy, but we all want bailouts. Savers deserve to get paid now. Millions and millions of us sacrificed. Thank you FED for finally making it right.
Fed is not trying to "make things right." It, as usual, is scrambling to correct problems it created. Maybe with no FED a free market would not have such problems. LOL
Problems that Congress created.
Yes...a free market would be fantastic. But you and I, even in our bluster, ain't prepared for that.
The solution is easy, but we all want bailouts. Savers deserve to get paid now. Millions and millions of us sacrificed. Thank you FED for finally making it right.
Fed is not trying to "make things right." It, as usual, is scrambling to correct problems it created. Maybe with no FED a free market would not have such problems. LOL
Problems that Congress created.
Yes...a free market would be fantastic. But you and I, even in our bluster, ain't prepared for that.
Least you forget the most powerful bankers in the country created the FED and were allowed to do so by agreeing to forever fund the spending created by Congress, spending that is primarily designed to keep them employed. Do you not realize that they are bugs in the same bed? I'm with the crowd that believes the safest way to hold money is to hold money that is outside the immediate control of either group of bedbugs.
Natural forces of supply and demand are the best regulators on earth.
@cohodk said:
I ain't forgetting nothing. Congress passes the spending bills. Congress is elected by "we the people" those who, doing nothing to very little, get their cut of that spending.
Fixed it for ya.
Natural forces of supply and demand are the best regulators on earth.
@cohodk said:
I ain't forgetting nothing. Congress passes the spending bills. Congress is elected by "we the people" those who, doing nothing to very little, get their cut of that spending.
The FED solution to the inflation it created. Money supply growth - a red flag for economic growth and employment. Another case of spiking the punch bowl and then taking it away. While I agree that there is too much money, I also remind that it should have never been printed.
Natural forces of supply and demand are the best regulators on earth.
@cohodk said:
I ain't forgetting nothing. Congress passes the spending bills. Congress is elected by "we the people" those who, doing nothing to very little, get their cut of that spending.
Fixed it for ya.
So fix it.
Too late, we are outnumbered.
Natural forces of supply and demand are the best regulators on earth.
@cohodk said:
I ain't forgetting nothing. Congress passes the spending bills. Congress is elected by "we the people" those who, doing nothing to very little, get their cut of that spending.
@cohodk said:
I ain't forgetting nothing. Congress passes the spending bills. Congress is elected by "we the people" those who, doing nothing to very little, get their cut of that spending.
Fixed it for ya.
So fix it.
Too late, we are outnumbered.
Then surrender?
Use it.
Natural forces of supply and demand are the best regulators on earth.
@cohodk said:
I ain't forgetting nothing. Congress passes the spending bills. Congress is elected by "we the people" those who, doing nothing to very little, get their cut of that spending.
A flurry of data showed surprising strength in several corners of the US economy, painting a picture of resilience and further delaying any likelihood of recession.
Purchases of new homes climbed to the fastest annual rate in more than a year, durable goods (DGNOCHNG) orders topped estimates and consumer confidence (CONCCONF) reached the highest level since the start of 2022, according to the Tuesday reports. Another release showed housing prices in the US rose for a third-straight month.
Purchases of new homes climbed to the fastest annual rate in more than a year, durable goods (DGNOCHNG) orders topped estimates and consumer confidence (CONCCONF) reached the highest level since the start of 2022, according to the Tuesday reports. Another release showed housing prices in the US rose for a third-straight month.
Simply a fear of higher prices later added to a fear of a higher cost of borrowing money (debt) to pay those higher prices.
As I have noted elsewhere consumer spending (money velocity) will accelerate when there is fear of inflation and higher interest rates. An oversupply in big box warehouses as they over compensated from Covid supply issues is an added plus. Just bought my $3100 refrigerator on sale at Lowe's for $1800. Was fortunate to also take advantage of a state moratorium on sales tax on energy star appliances.
Natural forces of supply and demand are the best regulators on earth.
all you have to do is look at the coronavirus relief fund to see the goverment waste, billions of dollars wasted by fraud. they could take in 2 trillion more in taxes and still run a deficit, this will be a 3rd world country, the sad part is i will probably still be alive to see it
Purchases of new homes climbed to the fastest annual rate in more than a year, durable goods (DGNOCHNG) orders topped estimates and consumer confidence (CONCCONF) reached the highest level since the start of 2022, according to the Tuesday reports. Another release showed housing prices in the US rose for a third-straight month.
Simply a fear of higher prices later added to a fear of a higher cost of borrowing money (debt) to pay those higher prices.
A scared person is a controlled person. Stop being afraid.
"traffic has rebounded to roughly prepandemic levels. The Transportation Security Administration has screened 2.55 million travelers a day on average this month, down about 1% fewer from the same period in 2019"
Purchases of new homes climbed to the fastest annual rate in more than a year, durable goods (DGNOCHNG) orders topped estimates and consumer confidence (CONCCONF) reached the highest level since the start of 2022, according to the Tuesday reports. Another release showed housing prices in the US rose for a third-straight month.
Simply a fear of higher prices later added to a fear of a higher cost of borrowing money (debt) to pay those higher prices.
A scared person is a controlled person. Stop being afraid.
Like it or not, fear and greed are what drives markets.
Natural forces of supply and demand are the best regulators on earth.
Purchases of new homes climbed to the fastest annual rate in more than a year, durable goods (DGNOCHNG) orders topped estimates and consumer confidence (CONCCONF) reached the highest level since the start of 2022, according to the Tuesday reports. Another release showed housing prices in the US rose for a third-straight month.
Simply a fear of higher prices later added to a fear of a higher cost of borrowing money (debt) to pay those higher prices.
A scared person is a controlled person. Stop being afraid.
Like it or not, fear and greed are what drives markets.
Indeed. And it's what allows "them" to take advantage.
When masses act on fear or greed, prices get distorted thus providing opportunity for those whose knowledge defeats fear.
Folk are not buying houses because they are fearful prices will continue to accelerate higher, although you have intimated as much.
Folk are not buying houses because they are fearful prices will continue to accelerate higher, although you have intimated as much.
It is the primary reason folks would buy a house in an inflationary or climbing rate environment. If they believed prices or rates would come down most would wait. Most folks buying a home already have somewhere to live, it's simply a matter of moving up or moving down. It's not like they just got off a bus from Florida and are suddenly in the market for a home.
Natural forces of supply and demand are the best regulators on earth.
"traffic has rebounded to roughly prepandemic levels. The Transportation Security Administration has screened 2.55 million travelers a day on average this month, down about 1% fewer from the same period in 2019"
I guess the economy sucked in 2019 also. Lol
A couple things to note here: Since US population is up 2% since 2019, travel on a per person basis is down around 3%. Still not all that much, but some of the travel this year is simply pent up demand from the folks that didn't travel during Covid. Air fares and lodging are at all time highs, but so is credit card debt.
content://com.android.chrome.FileProvider/images/screenshot/1687962612494776566930.jpg
"traffic has rebounded to roughly prepandemic levels. The Transportation Security Administration has screened 2.55 million travelers a day on average this month, down about 1% fewer from the same period in 2019"
I guess the economy sucked in 2019 also. Lol
A couple things to note here: Since US population is up 2% since 2019, travel on a per person basis is down around 3%. Still not all that much, but some of the travel this year is simply pent up demand from the folks that didn't travel during Covid. Air fares and lodging are at all time highs, but so is credit card debt.
content://com.android.chrome.FileProvider/images/screenshot/1687962612494776566930.jpg
But if you figure in the "adjusted inflation figure" for that time frame, credit card debt to % is actually lower.
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
But if you figure in the "adjusted inflation figure" for that time frame, credit card debt to % is actually lower.
That is a valid data point to investigate. However, using BLS inflation calculator, $1 in 2000 is the same purchasing power as $1.80 today, so an 80% increase (while credit card debt is up almost exactly 100% over the same time). That is lessened by the fact that the debt is spread across more people (18% population growth since 2000). I would agree that the credit card debt total doesn't look nearly as bad as 2007-2010 or 2019-2020, with the exception of the fact that the interest rate on the average credit card today is at least 5% higher than it was at any time between 2000 and 2020. So the actual credit burden is actually significantly higher when you consider that something like 55% of credit card holders today carry a balance and are paying, on average 20% interest. I would also argue consumer credit levels would be much higher (like around 20% higher) if not for 3 years of suspended student loan repayments. So yes, given all the short term stimulus, there is a problem with the current level of consumer credit.
Folk are not buying houses because they are fearful prices will continue to accelerate higher, although you have intimated as much.
It is the primary reason folks would buy a house in an inflationary or climbing rate environment. If they believed prices or rates would come down most would wait. Most folks buying a home already have somewhere to live, it's simply a matter of moving up or moving down. It's not like they just got off a bus from Florida and are suddenly in the market for a home.
No it is not. There are 65 million folk between the ages of 25-40 who are in family formation mode. They want a house to raise their children and they can't find enough houses because since 2006 builders have not kept pace with demand.
You should remember the effect the baby boomers had on real estate and the economy during their family formation years.
Your views are through the lens of your demographic, which is very myopic, and self-centered.
We focus on $1 trillion in credit card debt while ignoring the $1 trillion in added income via higher interest rates.
Credit card debt isn't up much from 2008 while the stock market and real estate values have tripled. The US stock market has a value of $90 trillion and residential real estate of $45 trillion, while the US bond market is worth over $50 trillion.
Why do we place so much emphasis on the small while ignoring the big?
Folk are not buying houses because they are fearful prices will continue to accelerate higher, although you have intimated as much.
It is the primary reason folks would buy a house in an inflationary or climbing rate environment. If they believed prices or rates would come down most would wait. Most folks buying a home already have somewhere to live, it's simply a matter of moving up or moving down. It's not like they just got off a bus from Florida and are suddenly in the market for a home.
No it is not. There are 65 million folk between the ages of 25-40 who are in family formation mode. They want a house to raise their children and they can't find enough houses because since 2006 builders have not kept pace with demand.
You should remember the effect the baby boomers had on real estate and the economy during their family formation years.
Your views are through the lens of your demographic, which is very myopic, and self-centered.
Not enough houses? LOL
Zillow only listings just in my city. You forget the old houses are still around, new houses only add to the supply. Population is far from growing as fast as available housing supply. And then there are all those apartments both new and existing.
My views are through the lens of supply and demand. You're the demographics guy. LOL
Again I say, unless relocating to another city most buyers base their purchase/relocation timing on interest rates and inflation (direction of prices).
Natural forces of supply and demand are the best regulators on earth.
@cohodk said:
We focus on $1 trillion in credit card debt while ignoring the $1 trillion in added income via higher interest rates.
the $1T in added interest income is going primarily to those not carrying credit card debt. these folks use credit cards for the perks and typically pay the bill in full ea. month.
We focus on the $1T in CC dept because it is primarily being carried by people who cannot really afford it. This debt eventually catches up with many of them spelling catastrophe.
Two different ends of the interest rate spectrum. Keep in mind that the interest rates paid out to consumers are funded by higher interest rates taken in by lenders. The very large spread is quite the profit margin for them.
Natural forces of supply and demand are the best regulators on earth.
Folk are not buying houses because they are fearful prices will continue to accelerate higher, although you have intimated as much.
It is the primary reason folks would buy a house in an inflationary or climbing rate environment. If they believed prices or rates would come down most would wait. Most folks buying a home already have somewhere to live, it's simply a matter of moving up or moving down. It's not like they just got off a bus from Florida and are suddenly in the market for a home.
No it is not. There are 65 million folk between the ages of 25-40 who are in family formation mode. They want a house to raise their children and they can't find enough houses because since 2006 builders have not kept pace with demand.
You should remember the effect the baby boomers had on real estate and the economy during their family formation years.
Your views are through the lens of your demographic, which is very myopic, and self-centered.
Not enough houses? LOL
Zillow only listings just in my city. You forget the old houses are still around, new houses only add to the supply. Population is far from growing as fast as available housing supply. And then there are all those apartments both new and existing.
My views are through the lens of supply and demand. You're the demographics guy. LOL
Again I say, unless relocating to another city most buyers base their purchase/relocation timing on interest rates and inflation (direction of prices).
This is too easy.
Jacksonville metro area is 1.3 million and growing at over 15,000 per year and you show a map of a few hundred houses for sale. There is your LOL.
And here is data for the whole state. We'll below the level of 5 years ago. 80,000 homes available vs a population growing at 250,000 per year.
Your "inventory" is houses available for sale, not houses in existence. Available inventory is low because purchases are high. This result of supply and demand has everything to do with rising prices and the rising cost of a mortgage? LOL
Natural forces of supply and demand are the best regulators on earth.
Your "inventory" is houses available for sale, not houses in existence. Available inventory is low because purchases are high. This result of supply and demand has everything to do with rising prices and the rising cost of a mortgage? LOL
And in previous comments you say folk can't afford housesbecauses prices are high, mortgages cost more, folk are getting crushed via food and energy prices, insurance costs are ridiculous, ect.
Make up your mind dude. Either folk are doing well and paying high prices for homes with high mortgages or they are being crushed out of existence.
Does all this housing back and forth add much value for those on the site actually interested in precious metals?
Bottom line, interest rates are way up again today, and this causes a lot of borrowers to pay more and have a hard time paying bills. Those folks with no debt are doing a little better.
There are still some people who are buying PM's. Fancy old silver bars are selling for very high prices. Some quality and rarer coins are hitting new highs at auction.
Things are not yet in a panic mode.
Enjoy the 4th of July weekend and be thankful for our freedoms. Many around the world do not have it so good.
@cohodk said:
Your views are through the lens of your demographic, which is very myopic, and self-centered.
@cohodk said:
We focus on $1 trillion in credit card debt while ignoring the $1 trillion in added income via higher interest rates.
Credit card debt isn't up much from 2008 while the stock market and real estate values have tripled. The US stock market has a value of $90 trillion and residential real estate of $45 trillion, while the US bond market is worth over $50 trillion.
Why do we place so much emphasis on the small while ignoring the big?
.
Talk about being "myopic".
Your "analysis" leaves out a component of major importance.
Yes, with higher interest rates, some people (the net savers) earn more in interest income.
But did you know that interest rates on credit card debt have also increased, a lot ?
In 2008 the typical interest rate on credit card debt was about 13%.
Today it is about 21%
That’s a sad reflection on people who keep a balance on their credit cards.
that's a sad reflection on an economy/central bank that chooses to help punish its less fortunate participants.
The sad reflection is for decades you sit her rooting for the demise of this great nation. No matter how many hours a day you try to post it the facts are your compass is off about 180. God Bless "Merica!.
That’s a sad reflection on people who keep a balance on their credit cards.
that's a sad reflection on an economy/central bank that chooses to help punish its less fortunate participants.
The sad reflection is for decades you sit her rooting for the demise of this great nation. No matter how many hours a day you try to post it the facts are your compass is off about 180. God Bless "Merica!.
Rooting and warning are two completely different things, but only to those who have not been controlled. Compass is off 180 degrees from your compass, something I'm quite proud of.
Natural forces of supply and demand are the best regulators on earth.
My guess is, that most of you don't remember cc rates above 24%, Mortgage rates of over 15%, Personal Loan rates up to 36% c,d. rates up to 15% Well. I do, circa 1975- 1985 and we managed to muddle through. The current situation with rates is a cake walk compared.to that period in time.
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
@cohodk said:
Your views are through the lens of your demographic, which is very myopic, and self-centered.
@cohodk said:
We focus on $1 trillion in credit card debt while ignoring the $1 trillion in added income via higher interest rates.
Credit card debt isn't up much from 2008 while the stock market and real estate values have tripled. The US stock market has a value of $90 trillion and residential real estate of $45 trillion, while the US bond market is worth over $50 trillion.
Why do we place so much emphasis on the small while ignoring the big?
.
Talk about being "myopic".
Your "analysis" leaves out a component of major importance.
Yes, with higher interest rates, some people (the net savers) earn more in interest income.
But did you know that interest rates on credit card debt have also increased, a lot ?
In 2008 the typical interest rate on credit card debt was about 13%.
Today it is about 21%
.
Apple stock has increased more in value just this year than the total of that credit card debt.
@cohodk said:
Your views are through the lens of your demographic, which is very myopic, and self-centered.
@cohodk said:
We focus on $1 trillion in credit card debt while ignoring the $1 trillion in added income via higher interest rates.
Credit card debt isn't up much from 2008 while the stock market and real estate values have tripled. The US stock market has a value of $90 trillion and residential real estate of $45 trillion, while the US bond market is worth over $50 trillion.
Why do we place so much emphasis on the small while ignoring the big?
.
Talk about being "myopic".
Your "analysis" leaves out a component of major importance.
Yes, with higher interest rates, some people (the net savers) earn more in interest income.
But did you know that interest rates on credit card debt have also increased, a lot ?
In 2008 the typical interest rate on credit card debt was about 13%.
Today it is about 21%
.
Apple stock has increased more in value just this year than the total of that credit card debt.
Why so much focus on the small?
.
Total credit card debt in the United States is approaching one trillion dollars. Not "small".
The US stock market has a value of $90 trillion......
Really? Source? You sure you didn't quote GLOBAL stock market capitilzation for the end of 2022?
Total US stock market capitalization is around $44T, currently with extremely high PE ratios and market cap to GDP ratios. Since end of 2019 US gov debt has increased by almost $10T, very close to the amount US stock market capitilization has increased.
For those that think economy is strong, and, without introducing any political discussion, how does $400B in student loan debt "unforgiveness" and 1 Oct resumption of payments affect the economy?
@OPA said:
My guess is, that most of you don't remember cc rates above 24%, Mortgage rates of over 15%, Personal Loan rates up to 36% c,d. rates up to 15% Well. I do, circa 1975- 1985 and we managed to muddle through. The current situation with rates is a cake walk compared.to that period in time.
The "muddle through" was a result of a no-nonsense FED Chair (Volker) who had the gonads to tackle inflation with a federal funds rate of 20%. I do not see such testicular fortitude in the current FED. I do see inflation and interest rates in a long term rise. Appears that this time may very well be different.
And yes I remember the time quite well. Closed on a variable rate mortgage at 15% at the time. Thank you Paul Volker for bringing my house payments down to reality. And thanks to PMs my new home does not require a mortgage.
Natural forces of supply and demand are the best regulators on earth.
@RobM said:
For those that think economy is strong, and, without introducing any political discussion, how does $400B in student loan debt "unforgiveness" and 1 Oct resumption of payments affect the economy?
If you borrow money, you should pay it back. I do not care at all if it affects the handout ending economy.
I paid the University of Washington medical grad school $200,000 from my "retirement" savings over 4 years, so that my daughter would not have to take out student loans with interest, so she could get a Doctor of Pharmacy degree.
The government attempting to make me then pay for someone else's debt irresponsibility and to buy their votes, was truly infuriating. Today was a great day.
@RobM said:
For those that think economy is strong, and, without introducing any political discussion, how does $400B in student loan debt "unforgiveness" and 1 Oct resumption of payments affect the economy?
2020 SECURE act responsible for current stock prices? I have alluded to this before.... Is automatic investing by default in 401Ks resulting in money blindly going into stocks? How else can one explain TTM PEs of 26:1 in rising/normalized interest rate environment? New normal?
Comments
Fed is not trying to "make things right." It, as usual, is scrambling to correct problems it created. Maybe with no FED a free market would not have such problems. LOL
Natural forces of supply and demand are the best regulators on earth.
Problems that Congress created.
Yes...a free market would be fantastic. But you and I, even in our bluster, ain't prepared for that.
Knowledge is the enemy of fear
Least you forget the most powerful bankers in the country created the FED and were allowed to do so by agreeing to forever fund the spending created by Congress, spending that is primarily designed to keep them employed. Do you not realize that they are bugs in the same bed? I'm with the crowd that believes the safest way to hold money is to hold money that is outside the immediate control of either group of bedbugs.
Natural forces of supply and demand are the best regulators on earth.
I ain't forgetting nothing. Congress passes the spending bills. Congress is elected by "we the people".
We are weak.
Knowledge is the enemy of fear
Fixed it for ya.
Natural forces of supply and demand are the best regulators on earth.
So fix it.
In the meantime at Cohodkville
Knowledge is the enemy of fear
The FED solution to the inflation it created. Money supply growth - a red flag for economic growth and employment. Another case of spiking the punch bowl and then taking it away. While I agree that there is too much money, I also remind that it should have never been printed.
Natural forces of supply and demand are the best regulators on earth.
Too late, we are outnumbered.
Natural forces of supply and demand are the best regulators on earth.
Then surrender?
Knowledge is the enemy of fear
Use it.
Natural forces of supply and demand are the best regulators on earth.
👍👍👍
Knowledge is the enemy of fear
Surprisingly Strong US Economic Data Keeps Recession Fears at Bay https://www.bloomberg.com/news/articles/2023-06-27/-resoundingly-solid-us-economy-delays-recession-calls-even-more
A flurry of data showed surprising strength in several corners of the US economy, painting a picture of resilience and further delaying any likelihood of recession.
Purchases of new homes climbed to the fastest annual rate in more than a year, durable goods (DGNOCHNG) orders topped estimates and consumer confidence (CONCCONF) reached the highest level since the start of 2022, according to the Tuesday reports. Another release showed housing prices in the US rose for a third-straight month.
Knowledge is the enemy of fear
Simply a fear of higher prices later added to a fear of a higher cost of borrowing money (debt) to pay those higher prices.
As I have noted elsewhere consumer spending (money velocity) will accelerate when there is fear of inflation and higher interest rates. An oversupply in big box warehouses as they over compensated from Covid supply issues is an added plus. Just bought my $3100 refrigerator on sale at Lowe's for $1800. Was fortunate to also take advantage of a state moratorium on sales tax on energy star appliances.
Natural forces of supply and demand are the best regulators on earth.
all you have to do is look at the coronavirus relief fund to see the goverment waste, billions of dollars wasted by fraud. they could take in 2 trillion more in taxes and still run a deficit, this will be a 3rd world country, the sad part is i will probably still be alive to see it
A scared person is a controlled person. Stop being afraid.
Knowledge is the enemy of fear
https://www.marketwatch.com/story/flight-delays-mount-on-east-coast-as-airlines-face-big-july-4-holiday-travel-test-b10f6c8f?mod=home-page
"traffic has rebounded to roughly prepandemic levels. The Transportation Security Administration has screened 2.55 million travelers a day on average this month, down about 1% fewer from the same period in 2019"
I guess the economy sucked in 2019 also. Lol
Knowledge is the enemy of fear
Like it or not, fear and greed are what drives markets.
Natural forces of supply and demand are the best regulators on earth.
Maybe it was between two sucks.
Natural forces of supply and demand are the best regulators on earth.
Indeed. And it's what allows "them" to take advantage.
When masses act on fear or greed, prices get distorted thus providing opportunity for those whose knowledge defeats fear.
Folk are not buying houses because they are fearful prices will continue to accelerate higher, although you have intimated as much.
Knowledge is the enemy of fear
It is the primary reason folks would buy a house in an inflationary or climbing rate environment. If they believed prices or rates would come down most would wait. Most folks buying a home already have somewhere to live, it's simply a matter of moving up or moving down. It's not like they just got off a bus from Florida and are suddenly in the market for a home.
Natural forces of supply and demand are the best regulators on earth.
A couple things to note here: Since US population is up 2% since 2019, travel on a per person basis is down around 3%. Still not all that much, but some of the travel this year is simply pent up demand from the folks that didn't travel during Covid. Air fares and lodging are at all time highs, but so is credit card debt.
content://com.android.chrome.FileProvider/images/screenshot/1687962612494776566930.jpg
But if you figure in the "adjusted inflation figure" for that time frame, credit card debt to % is actually lower.
That is a valid data point to investigate. However, using BLS inflation calculator, $1 in 2000 is the same purchasing power as $1.80 today, so an 80% increase (while credit card debt is up almost exactly 100% over the same time). That is lessened by the fact that the debt is spread across more people (18% population growth since 2000). I would agree that the credit card debt total doesn't look nearly as bad as 2007-2010 or 2019-2020, with the exception of the fact that the interest rate on the average credit card today is at least 5% higher than it was at any time between 2000 and 2020. So the actual credit burden is actually significantly higher when you consider that something like 55% of credit card holders today carry a balance and are paying, on average 20% interest. I would also argue consumer credit levels would be much higher (like around 20% higher) if not for 3 years of suspended student loan repayments. So yes, given all the short term stimulus, there is a problem with the current level of consumer credit.
No it is not. There are 65 million folk between the ages of 25-40 who are in family formation mode. They want a house to raise their children and they can't find enough houses because since 2006 builders have not kept pace with demand.
You should remember the effect the baby boomers had on real estate and the economy during their family formation years.
Your views are through the lens of your demographic, which is very myopic, and self-centered.
Knowledge is the enemy of fear
We focus on $1 trillion in credit card debt while ignoring the $1 trillion in added income via higher interest rates.
Credit card debt isn't up much from 2008 while the stock market and real estate values have tripled. The US stock market has a value of $90 trillion and residential real estate of $45 trillion, while the US bond market is worth over $50 trillion.
Why do we place so much emphasis on the small while ignoring the big?
Knowledge is the enemy of fear
Not enough houses? LOL
Zillow only listings just in my city. You forget the old houses are still around, new houses only add to the supply. Population is far from growing as fast as available housing supply. And then there are all those apartments both new and existing.
My views are through the lens of supply and demand. You're the demographics guy. LOL
Again I say, unless relocating to another city most buyers base their purchase/relocation timing on interest rates and inflation (direction of prices).
Natural forces of supply and demand are the best regulators on earth.
the $1T in added interest income is going primarily to those not carrying credit card debt. these folks use credit cards for the perks and typically pay the bill in full ea. month.
We focus on the $1T in CC dept because it is primarily being carried by people who cannot really afford it. This debt eventually catches up with many of them spelling catastrophe.
Two different ends of the interest rate spectrum. Keep in mind that the interest rates paid out to consumers are funded by higher interest rates taken in by lenders. The very large spread is quite the profit margin for them.
Natural forces of supply and demand are the best regulators on earth.
This is too easy.
Jacksonville metro area is 1.3 million and growing at over 15,000 per year and you show a map of a few hundred houses for sale. There is your LOL.
And here is data for the whole state. We'll below the level of 5 years ago. 80,000 homes available vs a population growing at 250,000 per year.
Get out of that bunker!!
Knowledge is the enemy of fear
Here's active listings for a crap hole state New Jersey. There is no supply. So supply/demand guy, you understand yet?
Knowledge is the enemy of fear
Your "inventory" is houses available for sale, not houses in existence. Available inventory is low because purchases are high. This result of supply and demand has everything to do with rising prices and the rising cost of a mortgage? LOL
Natural forces of supply and demand are the best regulators on earth.
And in previous comments you say folk can't afford housesbecauses prices are high, mortgages cost more, folk are getting crushed via food and energy prices, insurance costs are ridiculous, ect.
Make up your mind dude. Either folk are doing well and paying high prices for homes with high mortgages or they are being crushed out of existence.
Knowledge is the enemy of fear
Does all this housing back and forth add much value for those on the site actually interested in precious metals?
Bottom line, interest rates are way up again today, and this causes a lot of borrowers to pay more and have a hard time paying bills. Those folks with no debt are doing a little better.
There are still some people who are buying PM's. Fancy old silver bars are selling for very high prices. Some quality and rarer coins are hitting new highs at auction.
Things are not yet in a panic mode.
Enjoy the 4th of July weekend and be thankful for our freedoms. Many around the world do not have it so good.
My US Mint Commemorative Medal Set
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Talk about being "myopic".
Your "analysis" leaves out a component of major importance.
Yes, with higher interest rates, some people (the net savers) earn more in interest income.
But did you know that interest rates on credit card debt have also increased, a lot ?
In 2008 the typical interest rate on credit card debt was about 13%.
Today it is about 21%
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@dcarr said: “Today it is about 21%”
That’s a sad reflection on people who keep a balance on their credit cards.
that's a sad reflection on an economy/central bank that chooses to help punish its less fortunate participants.
Natural forces of supply and demand are the best regulators on earth.
There was a major suck alright and it was not between 2 anything's. God bless this great nation. SMPR!
The whole worlds off its rocker, buy Gold™.
The sad reflection is for decades you sit her rooting for the demise of this great nation. No matter how many hours a day you try to post it the facts are your compass is off about 180. God Bless "Merica!.
The whole worlds off its rocker, buy Gold™.
Rooting and warning are two completely different things, but only to those who have not been controlled. Compass is off 180 degrees from your compass, something I'm quite proud of.
Natural forces of supply and demand are the best regulators on earth.
My guess is, that most of you don't remember cc rates above 24%, Mortgage rates of over 15%, Personal Loan rates up to 36% c,d. rates up to 15% Well. I do, circa 1975- 1985 and we managed to muddle through. The current situation with rates is a cake walk compared.to that period in time.
@OPA — I think quite a few of us are older than you think we are! 🤣
The "fortunate" savers have been punished for 15 years. And there are a lot more of them than the "unfortunate".
Credit card interest rates should go to 100%. Then maybe folk will at least attempt personal responsibility.
Knowledge is the enemy of fear
Still no recession....
https://seekingalpha.com/news/3984065-us-gdp-growth-revised-up-to-20-in-third-estimate
Knowledge is the enemy of fear
Apple stock has increased more in value just this year than the total of that credit card debt.
Why so much focus on the small?
Knowledge is the enemy of fear
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Total credit card debt in the United States is approaching one trillion dollars. Not "small".
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The US stock market has a value of $90 trillion......
Really? Source? You sure you didn't quote GLOBAL stock market capitilzation for the end of 2022?
Total US stock market capitalization is around $44T, currently with extremely high PE ratios and market cap to GDP ratios. Since end of 2019 US gov debt has increased by almost $10T, very close to the amount US stock market capitilization has increased.
For those that think economy is strong, and, without introducing any political discussion, how does $400B in student loan debt "unforgiveness" and 1 Oct resumption of payments affect the economy?
The "muddle through" was a result of a no-nonsense FED Chair (Volker) who had the gonads to tackle inflation with a federal funds rate of 20%. I do not see such testicular fortitude in the current FED. I do see inflation and interest rates in a long term rise. Appears that this time may very well be different.
And yes I remember the time quite well. Closed on a variable rate mortgage at 15% at the time. Thank you Paul Volker for bringing my house payments down to reality. And thanks to PMs my new home does not require a mortgage.
Natural forces of supply and demand are the best regulators on earth.
If you borrow money, you should pay it back. I do not care at all if it affects the handout ending economy.
I paid the University of Washington medical grad school $200,000 from my "retirement" savings over 4 years, so that my daughter would not have to take out student loans with interest, so she could get a Doctor of Pharmacy degree.
The government attempting to make me then pay for someone else's debt irresponsibility and to buy their votes, was truly infuriating. Today was a great day.
Think I will buy some PM's to celebrate the 4th!
My US Mint Commemorative Medal Set
Looks like they will be paying it back. It was a "temporary" reprieve to garner votes support.
Natural forces of supply and demand are the best regulators on earth.
2020 SECURE act responsible for current stock prices? I have alluded to this before.... Is automatic investing by default in 401Ks resulting in money blindly going into stocks? How else can one explain TTM PEs of 26:1 in rising/normalized interest rate environment? New normal?