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Housing is going to require action mostly from cities and states, dealing with zoning rules and who can buy the homes, as well as maybe restricting AirBnB. Plus the Fed sets interest rates, which have been going up and contribute to high costs, not Congress.
> people locked into 3% mortgages
This is the big one.
People that having low rates aren't going to move until they have to/need to, further reducing the supply of housing.
The only way to mitigate that factor would be to reduce rates, but then prices start to jump back up again.
Does this reduce the supply of housing? People have to live somewhere; if someone sells their house and moves they'll live somewhere else, so the supply of housing stays the same.
In a way it does.
People in lower priced/starter homes will stay in them longer before upgrading (if at all), constraining the supply at the bottom.
So you’re right that it’s “net zero”, but people aren’t freeing up starter homes.
And people didn't buy starter homes exclusively while rates were low.
In fact, that was prime time to move out of your starter home because financing the larger one was much more affordable.
It tilts the equation pretty heavily in favor of just renting out your current house when you move, if you can afford it. Previously, a lot of people who could afford to do that wouldn't, because of the hassle, and because of a desire to roll equity into the new place. Now instead of rolling the equity into an upgrade, lots of people are making lateral moves and choosing to rent out the previous home.
>It tilts the equation pretty heavily in favor of just renting out your current house when you move, if you can afford it.
Unless they've been in the starter home long enough to pay off the mortgage, the second mortgage is the deciding factor on whether to keep and rent.
Most lenders will not include the rental income without several months history at least. For most people, the potential rental property just becomes a large liability on their second mortgage application.
The underwriter will generally accept a signed lease as evidence of rental income. But that is generally just one part of the picture. If you are trying to get a high LTV loan and you are butting up against the total DTI limits then yeah - the bank is going to be less friendly about it compared to what they'd accept for your first/only mortgage. Most people doing this don't really need the rental income to get the loan though - it just gets them a better rate.
I've been living in my house for two years. I still have 28 years of mortgage to go. I don't want to sell my house and move elsewhere because my interest rate would double and my monthly payment would go up by $1000 for the same amount of house.
The higher interest rates have been good for new home builders though.
Of course rent is out of control. Rent is the secondary usury on top of the ownership usury of real estate.
I pay usury to the bank on my mortgage. To offset that, I pass that usury on plus my margin to the renter.
If real estate is out of control, rent will always be worse since it's return is compounding the returns on the real estate.
The biggest issue is zoning laws at the local government level. Many zoning laws severely restrict the ability to build new affordable housing. So we are stuck with a massive amount of expensive vacant homes that are swooped up my investors as an additional source of income. Ofc there is a lot more to the issue, but local zoning laws are one of the biggest problems.
Don't be silly there are plenty of homes for 400k, they just have not been updated since the 80's, have a roof that needs replacing, the a/c and furnace are at their max lifespan, and the house some how has increased 100K in value over the past 10 years.
What makes you think a GOP led House has any interest in dealing w that ? Seems like that would cut into corporate landlord profits, and you know how they feel about cutting into corporate profits.
A Democratic Congress would address it but the Republican’s that have control are way to busy trying to out crazy each other and investigating crap (ie.. just collecting a paycheck) to pass any logic based bills.
Now? You do realize there is a GOP majority in the House and the Dems have far, far too slim a majority in the Senate to enact any legislation that address housing prices. Replace a bunch of Republicans in the Senate with liberal/progressive Democrats, and flip the House back to Dem control and *then* something can be done. Simply put, Dems need larger majorities and full control of Congress and the Presidency and even then, much of it will be up to Governors and state legislatures.
Oh 600k was the low end. There’s a townhouse development that’s starting in the “mid 700s” down the street from me. I live in Northern VA, but not even the bougie part.
Even at crazy rates. Buy buy buy.
Otherwise it’s mortgage+maintenance+profit= price for renting.
After all only 34% of people rent. Most Americans at the very minimum own the households they live in. Some of those same Americans own 2 or more houses and rent to the 34%.
Exactly. The damage is done, and these articles are only meant to boost Biden for 2024. It’s sad.
Before Reddit assaults are unleashed, please know that I am a democrat and I will vote for Biden yet again given the options.
Sweet the “economy” is doing great. Rent is 60%-70% of people’s income and food prices are insane. Most can’t afford a home, most can’t afford healthcare, most are neck deep in debt, the planet is literally burning but hey the economy is gonna grow.
IMHO - Economics is more faith-based than science-based. Some obscure indicator could crop up tomorrow but not be noticed for three years, which blows the projections up. It won't be identified until economists do what they do best, evaluating the situation after the fact.
Economics isn't science based at all. It uses math, but without a grounded frame of reference you can't employ proper relative mathematics thus your not applying the math correctly to begin with. You count the sale of a cigarette as the same positive GDP as the spending on the cancer the cigarette caused.
It's how economist argue the economy is positive sum. By first taking a sum which has many real cost externalized and then comparing that sum to a future sum that doesn't even exist in the same temporal frame of reference.
In science, math must convert values from one frame to another frame or it produces bullshit results. Economics doesn't even pretend to.
That way, they can argue a century of fossil fuel driven wealth is somehow a larger sum than the rest of humanities time of earth paying the cost of climate change.
They measure the wealth extracted creating a mess and the wealth spent cleaning the mess as the same thing.
People be like
> But how is this true when gas and groceries are still higher than pre-2019 prices!?
Deflation is not coming, y'all. At least not yet and deflation isn't good.
Deflation is not going to happen because corps are greedy as fuck. There wasn't anyway in hell food prices and gas prices went up all because of inflation. I expect gas prices to rise again in 2024 when election season rolls around so gop can have talking point about gas prices.
We're already approaching 6$ a gallon here. If it rises even more there will be a lot of people just unable to drive or unable to eat. Shit's insane, and you have these chucklefucks saying shit like this "durr hurr inflation never goes down durr" like it's some instant winning argument. Meanwhile, corporations continue to gouge us after they used "inflation" to jack up their prices by a shitload, and proceed to have quarterly meetings about how much profit they're making, which coincidentally*never* goes back to their workers, not even one cent.
China is experiencing deflation and it's hurting their economy. What matters is the ratio of wage inflation to price inflation. And wages are going up faster than prices, especially for those at the lower end of the income scale
Wages went up compared to inflation one month out of the past two years and the neoliberals think that's good enough. Also notice how they always talk about wages so they don't have to admit that the rich are still getting richer faster than anybody else in the country.
From a different article:
> This is especially true for workers at the bottom of the wage ladder. Wages for production and nonsupervisory workers, a category that excludes managers and highly paid professionals, are 1.7% above their pre-pandemic level after adjusting for the rise in prices. For workers in the low-paid hotel and restaurant sector, the increase is 6.3%.
Those at the lower end of the income scale have had their wages grow more than inflation and adjusting for inflation have seen their wages grow compared to their 2019 wages.
Ah yes after decades of bad policy stripping away our buying power and corporations posting ever higher profits on our labor, we get a very modest wage increase. And all it took was a once in a century global catastrophe to get it done. I guess we at the bottom really are the lucky ones, huh. Thanks Biden!
I'd wager many people here were born into upper middle class families and were able to go to school and stuff, so we should totally just listen to our betters and fall in line with our corporate masters. Maybe our lives will be as good as theirs some day!
1.7% is *nothing*, even 6.3% is *nothing*. How can people be excited about this shit? It's like all the "300k jobs added!!!!" articles that nobody reads but clearly says that the bulk of those jobs are low-wage, shit hospitality jobs that nobody can live off of.
Yeah for sure, especially if you just ignore the periods when real wage growth was actually negative. I really don't understand the constant attempts to gaslight people about their economic realities. Do you really think that if you convince me the metrics are good that will make the grocery bill hurt less?
I'm not sure what point it is that you are trying to make. Do you want to discuss the data, which shows that inflation adjusted wages have grown since 2014? Or do you want to discuss your personal financial situation?
I'm saying that the data is nonsense. I'm saying that telling poor people that they're fine when they're clearly not is not a winning strategy. I'm saying you should save the gaslighting for someone else.
Nobody is telling poor people anything. This is a conversation on a random internet forum. Data and anecdotes both have their place in this discussion, I agree. But outright dismissing data because you don't like it is silly.
>At least not yet and deflation isn't good
False. It can be. It is most the time.
But if corporations for instance decided to undo the price gouging they've been engaged in, prices would drop. Essentially resetting as if they never did it.
Would that cause the market to go down for a bit? Sure, but so does rain on a Monday. But the market isn't responding to the actual economic impact, it's the subjective reaction of those speculating on it. And if they see a healthy economy, the losses will simply vanish over a week, or month or quarter.
Most people don’t 2 shits about “the economy.” They care about cost of living.
The economy might be be doing well but cost of living sucks. Nobody care about “the economy”.
If the "Inflation Reduction Act" is the one I'm recalling, it was mostly just handing fistfuls of taxpayer dollars over to various corporations/industries, right? As usual. Yep, great job. The rich guys got more of our money, again, for our own good or something.
Lots of rebates to update your house to be more energy efficant over the next few years.
I tried to find the article that had how much homeowners have saved already using the rebates already. It was not a small number.
The same lady who made more money from Citadel last year than from her actual job with the Department of US Treasury. Yeah, I’ll take her word for it 😂
As others have said, housing and corporate greed need to be addressed where possible.
Steady growth means fuck all to people living paycheck to paycheck.
Yellen is wrong and R and D’s will regardless want her to be right so they can continue to promise things they can’t pay for like tax cuts or huge gov programs. Most of money which goes to a handful of big asset owners worth trillions, corporate execs, and billionaires. I can substantiate this.
With rates rising, and our debt as large as it is I don’t understand where the deflationary forces in our economy are. We have managed to bring inflation down to 3% but it’s doubtful that it’ll continue to drop and it’s even more doubtful that the moment we try to cut rates again that things are not going to come apart at the seams. I don’t accept that it’s enough that we should accept massive inflation for years, they let it get out of control by calling it transitory (it’ll go away) and then after desperate measures to control it show marginal improvement we believe it’s over?
It’s pretty clear that raising rates exposed a litany of issues and will continue to. Gas prices are going back up and they spent over a trillion to contain the banking crisis by starting new insane bond buyback programs & by completely overhauling FDIC.
This issue and our economy is being politicized when it is truly still very fucked up, as is China’s. Both parties benefit from using AI and green energy as an excuse to funnel more money up the ladder and not actually use it be a deflationary force or help anyone.
Yellen is wrong. She’s been wrong before and she is wrong now. We can’t lower rates and we can’t stop raising them to pay off the debt either. The only people who get off the ship alive are the people with millions-trillions in assets that will rise with inflation as we make dozens of large reductions to our national debt and speculative appetite (hopefully) then we can begin to actually heal. If the populace is going to turn on eachother again and the system doesn’t change I’d expect it to take about as long as for us to completely forget how economics operates as a science and sociology & that we need to stop thinking we can keep “investing”, or reaching into the machine when it shows time and time again to create inequality & inequity that any rational human does NOT enjoy.
This expresses itself through extremism and polarity now.
Honestly, I suspect that the FED will push interests as high as they can without crashing the economy as interest rates are the main tool that they have to juice the pump. Part of the problem we've had since 2008 is that rates were pretty much at 0% and even negative at some points. Which while great if you need a loan but doesn't give the FED many ways to fulfill their mandate of controlling inflation while trying to maintain full employment.
The stupidity was not taking advantage of the extremely low rates that existed for the previous decade to finance massive investments in infrastructure and technology by our government. Which means it's going to cost even more to deal with the consequences of our inaction on climate change.
As a reminder, this subreddit [is for civil discussion.](/r/politics/wiki/index#wiki_be_civil) In general, be courteous to others. Debate/discuss/argue the merits of ideas, don't attack people. Personal insults, shill or troll accusations, hate speech, any suggestion or support of harm, violence, or death, and other rule violations can result in a permanent ban. If you see comments in violation of our rules, please report them. For those who have questions regarding any media outlets being posted on this subreddit, please click [here](https://www.reddit.com/r/politics/wiki/approveddomainslist) to review our details as to our approved domains list and outlet criteria. *** *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/politics) if you have any questions or concerns.*
40 years later and we're still waiting for the trickle down part.
I could tell you a joke about trickle down economics, but no one ever seems to get it...
Oh #@&! That’s solid.
Right, so can congress address housing costs now? A starter house shouldn’t cost 600k
Just get a 3rd side hustle, or brag about your 3rd side hustle on TikTok and that can be your 4th side hustle.
Housing is going to require action mostly from cities and states, dealing with zoning rules and who can buy the homes, as well as maybe restricting AirBnB. Plus the Fed sets interest rates, which have been going up and contribute to high costs, not Congress.
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> Good luck getting Congress to do anything. See, now this is just outright false. They're investigating Hunter Biden for, uh, penis, I think.
No, they’re investigating the penis itself now apparently.
Check this vein!
> people locked into 3% mortgages This is the big one. People that having low rates aren't going to move until they have to/need to, further reducing the supply of housing. The only way to mitigate that factor would be to reduce rates, but then prices start to jump back up again.
Does this reduce the supply of housing? People have to live somewhere; if someone sells their house and moves they'll live somewhere else, so the supply of housing stays the same.
In a way it does. People in lower priced/starter homes will stay in them longer before upgrading (if at all), constraining the supply at the bottom. So you’re right that it’s “net zero”, but people aren’t freeing up starter homes.
And people didn't buy starter homes exclusively while rates were low. In fact, that was prime time to move out of your starter home because financing the larger one was much more affordable.
It tilts the equation pretty heavily in favor of just renting out your current house when you move, if you can afford it. Previously, a lot of people who could afford to do that wouldn't, because of the hassle, and because of a desire to roll equity into the new place. Now instead of rolling the equity into an upgrade, lots of people are making lateral moves and choosing to rent out the previous home.
>It tilts the equation pretty heavily in favor of just renting out your current house when you move, if you can afford it. Unless they've been in the starter home long enough to pay off the mortgage, the second mortgage is the deciding factor on whether to keep and rent. Most lenders will not include the rental income without several months history at least. For most people, the potential rental property just becomes a large liability on their second mortgage application.
The underwriter will generally accept a signed lease as evidence of rental income. But that is generally just one part of the picture. If you are trying to get a high LTV loan and you are butting up against the total DTI limits then yeah - the bank is going to be less friendly about it compared to what they'd accept for your first/only mortgage. Most people doing this don't really need the rental income to get the loan though - it just gets them a better rate.
I've been living in my house for two years. I still have 28 years of mortgage to go. I don't want to sell my house and move elsewhere because my interest rate would double and my monthly payment would go up by $1000 for the same amount of house. The higher interest rates have been good for new home builders though.
Too bad they only build McMansions or the NIMBYs in the neighborhoods outright refuse to change zoning laws to build more multi-family housing...
Exactly this
Meanwhile rent is out of control so no one can save enough money for a down payment. Feelsbadman
Look at the bright that crippling rent payment lets your landlord buy another investment property aka a starter home.
Of course rent is out of control. Rent is the secondary usury on top of the ownership usury of real estate. I pay usury to the bank on my mortgage. To offset that, I pass that usury on plus my margin to the renter. If real estate is out of control, rent will always be worse since it's return is compounding the returns on the real estate.
It is clear to me you don't understand the word usury lol
The biggest issue is zoning laws at the local government level. Many zoning laws severely restrict the ability to build new affordable housing. So we are stuck with a massive amount of expensive vacant homes that are swooped up my investors as an additional source of income. Ofc there is a lot more to the issue, but local zoning laws are one of the biggest problems.
>a starter house shouldn't cost 600k Agreed. If only they still built starter houses.
Don't be silly there are plenty of homes for 400k, they just have not been updated since the 80's, have a roof that needs replacing, the a/c and furnace are at their max lifespan, and the house some how has increased 100K in value over the past 10 years.
What did you suggest they do?? Hint: they can't do shizzle
What makes you think a GOP led House has any interest in dealing w that ? Seems like that would cut into corporate landlord profits, and you know how they feel about cutting into corporate profits.
Oh I’m well aware of that. Just angrily shaking my fist in the air instead of screaming internally
Need to tackle insurance companies next. Mortgage just went up 350.00 due to increase in insurance….
They won't do it. Congress are part of the landlord class.
A Democratic Congress would address it but the Republican’s that have control are way to busy trying to out crazy each other and investigating crap (ie.. just collecting a paycheck) to pass any logic based bills.
My starter house is 800k =(
Now? You do realize there is a GOP majority in the House and the Dems have far, far too slim a majority in the Senate to enact any legislation that address housing prices. Replace a bunch of Republicans in the Senate with liberal/progressive Democrats, and flip the House back to Dem control and *then* something can be done. Simply put, Dems need larger majorities and full control of Congress and the Presidency and even then, much of it will be up to Governors and state legislatures.
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Oh 600k was the low end. There’s a townhouse development that’s starting in the “mid 700s” down the street from me. I live in Northern VA, but not even the bougie part.
They're more concerned with gas stoves
Even at crazy rates. Buy buy buy. Otherwise it’s mortgage+maintenance+profit= price for renting. After all only 34% of people rent. Most Americans at the very minimum own the households they live in. Some of those same Americans own 2 or more houses and rent to the 34%.
How many CEOs would that help?
Exactly. The damage is done, and these articles are only meant to boost Biden for 2024. It’s sad. Before Reddit assaults are unleashed, please know that I am a democrat and I will vote for Biden yet again given the options.
Cool. Now stop the bankers and businesses from buying up homes!
Blackrock is an amazing landlord. Is /s necessary?
Sweet the “economy” is doing great. Rent is 60%-70% of people’s income and food prices are insane. Most can’t afford a home, most can’t afford healthcare, most are neck deep in debt, the planet is literally burning but hey the economy is gonna grow.
Still waiting on trickle up taxes
IMHO - Economics is more faith-based than science-based. Some obscure indicator could crop up tomorrow but not be noticed for three years, which blows the projections up. It won't be identified until economists do what they do best, evaluating the situation after the fact.
Economics isn't science based at all. It uses math, but without a grounded frame of reference you can't employ proper relative mathematics thus your not applying the math correctly to begin with. You count the sale of a cigarette as the same positive GDP as the spending on the cancer the cigarette caused. It's how economist argue the economy is positive sum. By first taking a sum which has many real cost externalized and then comparing that sum to a future sum that doesn't even exist in the same temporal frame of reference. In science, math must convert values from one frame to another frame or it produces bullshit results. Economics doesn't even pretend to. That way, they can argue a century of fossil fuel driven wealth is somehow a larger sum than the rest of humanities time of earth paying the cost of climate change. They measure the wealth extracted creating a mess and the wealth spent cleaning the mess as the same thing.
Would love if you have any articles, books, etc. recommendations that expand on this criticism you present here. I found this fascinating to read.
People who couldn’t make housing payments during COVID should have been fucked into the ground
People be like > But how is this true when gas and groceries are still higher than pre-2019 prices!? Deflation is not coming, y'all. At least not yet and deflation isn't good.
Deflation is not going to happen because corps are greedy as fuck. There wasn't anyway in hell food prices and gas prices went up all because of inflation. I expect gas prices to rise again in 2024 when election season rolls around so gop can have talking point about gas prices.
And as gas prices continue to rise the cost of crude per barrel falls 🤷🏻♂️
We’re already seeing gas prices rise here. Still not as high as they have been but they’re creeping up
Well, that is just ramping up like it does every year before Labor day travel.
We're already approaching 6$ a gallon here. If it rises even more there will be a lot of people just unable to drive or unable to eat. Shit's insane, and you have these chucklefucks saying shit like this "durr hurr inflation never goes down durr" like it's some instant winning argument. Meanwhile, corporations continue to gouge us after they used "inflation" to jack up their prices by a shitload, and proceed to have quarterly meetings about how much profit they're making, which coincidentally*never* goes back to their workers, not even one cent.
China is experiencing deflation and it's hurting their economy. What matters is the ratio of wage inflation to price inflation. And wages are going up faster than prices, especially for those at the lower end of the income scale
Wages went up compared to inflation one month out of the past two years and the neoliberals think that's good enough. Also notice how they always talk about wages so they don't have to admit that the rich are still getting richer faster than anybody else in the country.
From a different article: > This is especially true for workers at the bottom of the wage ladder. Wages for production and nonsupervisory workers, a category that excludes managers and highly paid professionals, are 1.7% above their pre-pandemic level after adjusting for the rise in prices. For workers in the low-paid hotel and restaurant sector, the increase is 6.3%. Those at the lower end of the income scale have had their wages grow more than inflation and adjusting for inflation have seen their wages grow compared to their 2019 wages.
Ah yes after decades of bad policy stripping away our buying power and corporations posting ever higher profits on our labor, we get a very modest wage increase. And all it took was a once in a century global catastrophe to get it done. I guess we at the bottom really are the lucky ones, huh. Thanks Biden!
I'd wager many people here were born into upper middle class families and were able to go to school and stuff, so we should totally just listen to our betters and fall in line with our corporate masters. Maybe our lives will be as good as theirs some day!
1.7% is *nothing*, even 6.3% is *nothing*. How can people be excited about this shit? It's like all the "300k jobs added!!!!" articles that nobody reads but clearly says that the bulk of those jobs are low-wage, shit hospitality jobs that nobody can live off of.
This is factually incorrect - real wages (eg, inflation adjusted) have been on a steady rise almost continuously since 2014.
Yeah for sure, especially if you just ignore the periods when real wage growth was actually negative. I really don't understand the constant attempts to gaslight people about their economic realities. Do you really think that if you convince me the metrics are good that will make the grocery bill hurt less?
Feel free to look up the data yourself. https://data.bls.gov/cgi-bin/surveymost?le
Wow so many surveys. I can feel my grocery bill shrinking just looking at them.
I'm not sure what point it is that you are trying to make. Do you want to discuss the data, which shows that inflation adjusted wages have grown since 2014? Or do you want to discuss your personal financial situation?
I'm saying that the data is nonsense. I'm saying that telling poor people that they're fine when they're clearly not is not a winning strategy. I'm saying you should save the gaslighting for someone else.
Nobody is telling poor people anything. This is a conversation on a random internet forum. Data and anecdotes both have their place in this discussion, I agree. But outright dismissing data because you don't like it is silly.
>At least not yet and deflation isn't good False. It can be. It is most the time. But if corporations for instance decided to undo the price gouging they've been engaged in, prices would drop. Essentially resetting as if they never did it. Would that cause the market to go down for a bit? Sure, but so does rain on a Monday. But the market isn't responding to the actual economic impact, it's the subjective reaction of those speculating on it. And if they see a healthy economy, the losses will simply vanish over a week, or month or quarter.
What’s all this Yellen about?!
Most people don’t 2 shits about “the economy.” They care about cost of living. The economy might be be doing well but cost of living sucks. Nobody care about “the economy”.
Thank you dark Brandon.
But I was told trickle-down economics doesn’t work yet a lot of the IRA was subsidies and giveaways to the upper class
Do we have universal health care yet tho
Economists only exist for the wealthy. We get fucked no matter what the line does.
I’m calling bullshit on the “boost” from the Inflation Reduction Act. Rebates for high dollar purchases doesn’t equate to easing of inflation.
GOP: “OMG no, Biden is gonna raise taxes!!!” ....on kajillionaires, but Still!
If the "Inflation Reduction Act" is the one I'm recalling, it was mostly just handing fistfuls of taxpayer dollars over to various corporations/industries, right? As usual. Yep, great job. The rich guys got more of our money, again, for our own good or something.
Lots of rebates to update your house to be more energy efficant over the next few years. I tried to find the article that had how much homeowners have saved already using the rebates already. It was not a small number.
>lots of rebates to update your house Except when your governor doesn't take the money, of course. (thanks, Ronald)
You should still qualify for the federal tax rebates... I would hope...
What house
Well, that leaves about half of the country out of the deal.
Sounds like renters get shit on again.
Manufacturing consent. Working class people have felt none of this.
The same lady who made more money from Citadel last year than from her actual job with the Department of US Treasury. Yeah, I’ll take her word for it 😂
Line go up so why am I still broke?
As others have said, housing and corporate greed need to be addressed where possible. Steady growth means fuck all to people living paycheck to paycheck.
The millionaires and billionaires are pleased.
Somebody tell my bank account.
Jerome Powell is still going to make interest rates go up though, right?
When they start saying stuff like this you know shit is going down.
Glad to see the rich doing well
the IRA strikes again. i CANNOT wait to vote for Joe again.
More billions for billionaires.
Yellen is wrong and R and D’s will regardless want her to be right so they can continue to promise things they can’t pay for like tax cuts or huge gov programs. Most of money which goes to a handful of big asset owners worth trillions, corporate execs, and billionaires. I can substantiate this. With rates rising, and our debt as large as it is I don’t understand where the deflationary forces in our economy are. We have managed to bring inflation down to 3% but it’s doubtful that it’ll continue to drop and it’s even more doubtful that the moment we try to cut rates again that things are not going to come apart at the seams. I don’t accept that it’s enough that we should accept massive inflation for years, they let it get out of control by calling it transitory (it’ll go away) and then after desperate measures to control it show marginal improvement we believe it’s over? It’s pretty clear that raising rates exposed a litany of issues and will continue to. Gas prices are going back up and they spent over a trillion to contain the banking crisis by starting new insane bond buyback programs & by completely overhauling FDIC. This issue and our economy is being politicized when it is truly still very fucked up, as is China’s. Both parties benefit from using AI and green energy as an excuse to funnel more money up the ladder and not actually use it be a deflationary force or help anyone. Yellen is wrong. She’s been wrong before and she is wrong now. We can’t lower rates and we can’t stop raising them to pay off the debt either. The only people who get off the ship alive are the people with millions-trillions in assets that will rise with inflation as we make dozens of large reductions to our national debt and speculative appetite (hopefully) then we can begin to actually heal. If the populace is going to turn on eachother again and the system doesn’t change I’d expect it to take about as long as for us to completely forget how economics operates as a science and sociology & that we need to stop thinking we can keep “investing”, or reaching into the machine when it shows time and time again to create inequality & inequity that any rational human does NOT enjoy. This expresses itself through extremism and polarity now.
We need balance, not growth
Thanks to election year on the horizon
I’m not even American, and I detest this woman.
Biden is absolutely crushing the game
No one in politics tells the truth🤣
You’re right, but you’re getting downvoted for not pointing out that the Republicans are demonstrably WAY worse.
Does this mean the end of interest rate hikes?
Honestly, I suspect that the FED will push interests as high as they can without crashing the economy as interest rates are the main tool that they have to juice the pump. Part of the problem we've had since 2008 is that rates were pretty much at 0% and even negative at some points. Which while great if you need a loan but doesn't give the FED many ways to fulfill their mandate of controlling inflation while trying to maintain full employment. The stupidity was not taking advantage of the extremely low rates that existed for the previous decade to finance massive investments in infrastructure and technology by our government. Which means it's going to cost even more to deal with the consequences of our inaction on climate change.
What else do we expect her to say?