As I recently turned 50, I realize there's not much use worrying about stuff, including the economy.
We do have an amazing ability to adjust in uncertain economic times.
There is, indeed, less disposable income as everything costs more, but our pay in no way keeps up with this.
During these times, we must learn to appreciate things that don't cost a fortune, attending local events, for example.
Anyway, the more you make, the more you spend so you're not much further ahead if you make more. You just have more expensive hobbies, or you may buy more expensive toys, but you may not even have the time to use them.
It was only a matter of time. Injecting TRILLIONS of $$$ into the economy caused people and businesses to be more carefree with their money. The stock market and housing market (just to name a few) were running super hot with low interest rates. Sellers were routinely getting above asking prices on short supply. Something had to give, so throw in a pandemic, war, economic policy changes and whala.
Those of us who've been through a recession or two know that it's now a waiting game to see how hard and how long it will last, so tighten down the belt strap a little and reign in some of the discretionary spending and hope that the powers to be course correct in a way to minimize the impact of those who are living on fixed incomes, unemployed, or just struggling to get by.
Wouldn’t it make more sense to address the supply side issues directly vs. jacking interest rates up to obscene levels in order to bring down already inelastic demand? It occurs to me that forcing layoffs and jamming the economy into a severe recession is a very cruel way to solve what really is a supply problem brought on by failure to fix supply problems at the ports, failure to incentivize workers who have left the labor markets altogether (through endless loan deferment and other policies), failure to stop Putin’s narcissistic war (by taking the necessary deterrence off the table), and failure to properly manage energy supply availability. Instead, we will intentionally destroy our own economy and see how many people need to be laid off for gas prices to drop by November. Poor strategy I’m afraid.
It’s a great deal more complicated. And while the supply/demand ratio is valid, we are a global economy. This is a consumer-driven spending problem.
There is only so much that can be done just in the US. The Fed manages the money supply and they are doing everything they can. There is only so much that can be done at ports when there are not enough trucks on the road. Nobody is forcing layoffs…in fact, we need more workers, not less!
I believe it is much, much too early to suggest the current monetary policy will drive us into a deep recession. Our economy is fundamentally driven by consumer spending. People finally able to put Covid somewhat in the rear view mirror are doing and spending. Supply chains were coming back - until Putin decided to be Peter the less than great.
Energy supply is managed by big business energy companies. They cracked when the money was good and sold as an export when they could get better pricing elsewhere. Cramping Putin by not buying Russian oil is a practical strategy to hurt his finances.
What, exactly, do you feel we should be doing vis a vis Putin to “take the necessary deterrent off the table?” Are you willing to gamble on a nuclear WWIII or can you exert a little more patience and let things play out?
Yes, we should gamble on WWIII. It's not actually so crazy - Reagan would have already done it, and there never would have been an invasion. Putin is a tyrant, and tyrants understand one thing, which is power. It was foolish to pull US troops and diplomats out of Ukraine - we gave Putin a green light. Do you believe Putin would start a suicidal nuclear war if Biden told Putin to end the war this week or face decisive intervention? Me neither. He'd simply declare victory, dig a new trench, and be done. In a world full of cowards, the bully is King.
I hope you're right on both the economy and appeasement. I fear otherwise, but I hope it all works out for the best.
Gamble on WWIII? That’s insane. Are you active duty military? Want to see a real recession?
Nuclear weapons are the wild card. If you can predict what Reagan would have done you are kind of a wild. And yes, I do believe Putin would use nukes if he felt he had nothing left to lose.
Last time I checked we had no troops in Ukraine as it is not a NATO country.
Yes, we had troops in Ukraine that we pulled out IOT roll out the red carpet for Putin's rapists and murderers. I am a combat vet, and yes, I'm serving and would already be pulling my boots on if I had the opportunity to go help eliminate Russian war criminals from Ukraine. My wife understands why, because I shared Ronald Reagan's "Rendezvous with Destiny" speech with her while we watched the Russian tanks rolling in in February. My kids would at least know their Dad was the kinda guy who doesn't watch a rape and do nothing.
Putin would have something to lose if it was clear our involvement was limited to defending Ukraine (as we agreed to do in the 90's when the gave up their nukes). I would not advocate hitting targets in Russia or pushing for Russian regime change.
If you like, Google the speech... starting at "We cannot buy our security, our freedom from the threat of the bomb, by committing an immorality so great..."
Inflation is too much money chasing too few goods (demand and supply). We now have "too much money" because the Fed kept interest rates artificially low for a decade ("free money") and Biden been printing trillions of dollars for the past 18 months. We have no supplies (gas, groceries, goods) because Biden and his Blue state governors locked down the country (truckers, factory workers, service workers, etc) and now we can't make anything and we can't move anything from Port A to anywhere. And we have a gas shortage (with $6/gal) because Biden told the oil companies on day 1 that he was going to put them out of business so they shut down their oil rigs, gas refineries, and drilling exploration. So guess what? Biden turned off the oil/gas spigot and a shortage (scare goods) always causes prices to go up (legally). Everything we experience now was 100 percent predictable. Putin's War only added a tiny bit of fuel to the fire. This is Bidenomics at work, not Putin's fault. And there is precious little the Fed can do about it now - the damage is done. The Fed should just butt out of the way (as should Biden) and let the economy sort itself out. Economics 101. We would be just fine. "That government is best that governs least"--Thomas Jefferson.
When the President signs deficit spending laws, the Treasury borrows money from the Federal Reserve to pay for that govt spending, so the Fed has to "print money" (as Treasury Bonds) to loan to the Treasury. See explanation:
At 57 and being in the construction/contracting business my whole life I have lived through several downturns. 2008 was bad, I had a couple friends go bankrupt. Number one thing is to get rid of as much debt as possible. Fortunately, I am 100% debt-free and not overly concerned about the economy slipping, it always does. I still work part time and have saved and invested for the imminent rainy day.
The older I get I realized time is more important to me than money. We live fairly simple lives below our means but still do anything we want, which isn’t that exciting to lots of people. We’ll all get through this, we always do and life will go on. Cheers!
Edit: The biggest lessons I have learned are:
T
1. Have a skill that is always in demand. I have 4 state licenses for various trades that will ALWAYS be in need 2. No or very easily manageable debt, I can’t say this enough. 3. Live below your means, stop buying stuff on credit if you can’t afford it. 4. Have a good partner with same mindset. My wife and I have been together for 37 yrs and we still like each other.
Wow, this is spot on! I’m 58 and feel pretty much the same way and concur with the lessons. I’ll just add: I’ll respond to a recession like I responded to the pandemic, by taking joy in the simple things that are close at hand. Living simply allows you to ride out these ups and downs.
I am 68 with enough SS and an annuity to live comfortably. No car payment, very small house payment, married and we both have about the same income. Our strategy is no debt (except house), no extravagance, live simply.
The economy will be worse before it gets better. I have done without A LOT of things to have a paid for house and truck. Luckily I did away with credit cards years ago, so while feeling a financial pinch right now, won't be a disaster. Just wish I had been a tightwad much sooner.
When I retired we moved to a better cost of living area (low property taxes) near a progressive city and mountains where we love to hike, living in the foothills where we love to bike, both healthy and inexpensive activities. We could have purchased a home in the same price range but instead downsized and paid cash. No mortgage! The only debt is a zero interest auto loan so we could keep our cash invested.
We are on full SS and I earned enough to max that out at full retirement age this year, just in time for the market nonsense and inflation. We supplement with a small amount from investments and savings. COL adjustments help keep SS relevant. The planning for today began years ago and the strategy implemented along the way is paying off.
You’ve heard the advice to wait out market volatility; it is true. We’ve been through a dust up every 10 years or so. Our investments today are worth less than last year (still more than two years ago) but we only need a small amount today. We have made enough on them in the good times to wait out the bad. Investment balances mean nothing unless you need all the money at one time. It is generally a long game, even when you are retired.
My 2¢:
- save and invest when you are working
- use someone with knowledge to help you manage investments
- manage your borrowing when you are working
- be debt-free when you retire
- develop interests that are healthy and cost effective
I’m 54 and saw this coming as soon as the government started the multiple rounds of stimulus/money printing. I have paid off my house, cars and all other debt while also putting away cash to take advantage of the stock and housing market corrections.
If you have been living within your means and working hard this recession is an opportunity to gain wealth on the other side.
I remember the late 70’s and early 80’s when 7.5% car loans were consider good rates. We still lived a good life, but we lived within our means.
I’m much more concerned about food shortages in the next year or two than I am about the recession.
At 61 and a retired teacher, I recall the high interest rates on mortgages if the 1970’s, and the terrible downturn of 2008. I learned that you have to live below your means at all times (not to be confused with complete penny-pinching deprivation), focusing on what is of value to you in the long run. For me, I always saved retirement money, I took my kids on travels (domestic and international), and I refrained from equating my image of myself with the material goods in my possession.
Am I concerned about a current downturn in the economy? Yes, but I think that it will be short-lived, in this case maybe a couple of years rather than a decade.
Well, dejavu! Bill mentioned 1980. I was an employed adult at that time. I had a min wage job late 70's at around $3.00 hour working retail. I had been used to paying about $1.60 for gasoline. By 1980 I was paying almost $3.00. Gasoline was rationed. Inflation was 15% +/- . It was rough and scary. I didn't know how I was going to make it. I ran up credit card debt to make ends meet. I had an acquaintance at the time that bought a house at 15% . I remember how fortunate I felt when I was able to buy a home ' owner-finance ' at 10% interest. That having been said, these last few months have brought my memories of the late 70's back to life. I have children in their late 40's now. I have brain-washed them to minimize debt no matter how successful they are, to be conscious of gas efficiencies of their vehicles, and you don't need $250 tennis shoes. Most importantly, all you really need is a roof over your head, a car so you can get yourself to work and food on the table; everything this else is just fluff. So to the rest of the world I say, ' just hang on, this too shall pass '.
I'm worried about where we are going from here. Not just economically, but philosophically as well. We've been bombarded by negativity the last 2-3 years: Pandemic quarantine, the assault on our seat of democracy and now the economy going kablooey. The one commonality among all this was we, as Americans could do nothing about it. I would say that after more than 2 years of sitting around helplessly watching our society disintegrate around us we have grown weary. The next chance we have to feel in control is 2024. I believe change is coming. Maybe not for the better, but definitely change. I'm staying positive and hopeful. As a famous man once said It's better than the alternative.
If you remember 23c/gal gas, you no doubt remember Whip Inflation Now - another great government plan. Young folks now are "fortunate" to be able to tell their grandkids "I survived the 2022 inflation spiral and market meltdown" (hopefully not recession) just like a few of us can say we survived the Seventies OPEC oil shock and inflation crisis, and the market crashes of 1987 (global), 2000 (internet bubble), and 2008 (housing finance bubble). A non-war badge of honor. A "tuition-free" edumacation. Former Fed Chair Greenspan's "Law of Irrational Exuberance" has not been repealed. But apparently our Federal Reserve hasn't learned yet. Professor Mohammed El-arian said it best yesterday: "We need a more honest Fed."
we need the fed to quit playing politics. They should have slowed this down when the unemployment rate hit 6% and coasted to a normal economy. Instead they kept on the gas until way to late. Think aircraft carrier not sports car.
Everyone saw this coming but they said it was going to be transitory. You even have Janet Yellen, the ex Fed chief, now in the administration that kept insisting that this was temporary. I'm not an economist but it makes me wonder how our brightest minds weren't able to see this coming and take action before it became a crisis. And supposedly they're politically neutral. Hmmm.....
As a pensioner we are pretty much on a fixed income. We started the retirement gig 2 years ago just as COVID was starting. Everything looked dire as our investments dipped and then they roared back. Now we see another substantial dip, but the key concern is inflation. It was estimated by Bloomberg that the average cost caused by the inflation over past 12 months is an increase in costs of some $5,000 a year for a basket of common purchases from food, energy, clothing etc. The problem is that we rarely see those costs reverse itself. Multiply that cost out over next 25 years and we will spend $125,000 more than we would have. Our only hope is that the inflation juggernaut slows down as our income is not multiplying to keep up.
I'm 63, my hubby 67 and he will be retiring August 1st. I'm beginning to have nightmares thinking about everything financial going on and prices for everything rising so much. We will be losing 2/3 of his income when he retires and will only draw on Social Security at this time (trying not to touch retirement $$ while I'm still working). We still have a mortgage and car payments as our only debt, no credit card balances. We use them (for rewards) and pay them immediately. We have paid $9,000 in credit card debt and our $15,000 equity loan in the last year in preparation for hubby's retirement. I am an excellent cook and baker and make really good bread, freestyle and in the breadmaker. So we will be doing a lot more meal prepping, bread making, canning in the future months to try to sail these rough financial seas.
What??? Our police? And if anyone is shutting down fossil fuel production it is the oil companies who make money one way or the other. Has nothing to do with clean energy policies/changes.
Jim, Jim, Jim, do I sense a little sarcasm in your editorial? I'm sure Vlad is sitting over there trying to figure out what he can run these energy prices up to, when he's not thinking about the war.
as per inflation, if it costs too much, don't buy it
As I recently turned 50, I realize there's not much use worrying about stuff, including the economy.
We do have an amazing ability to adjust in uncertain economic times.
There is, indeed, less disposable income as everything costs more, but our pay in no way keeps up with this.
During these times, we must learn to appreciate things that don't cost a fortune, attending local events, for example.
Anyway, the more you make, the more you spend so you're not much further ahead if you make more. You just have more expensive hobbies, or you may buy more expensive toys, but you may not even have the time to use them.
It was only a matter of time. Injecting TRILLIONS of $$$ into the economy caused people and businesses to be more carefree with their money. The stock market and housing market (just to name a few) were running super hot with low interest rates. Sellers were routinely getting above asking prices on short supply. Something had to give, so throw in a pandemic, war, economic policy changes and whala.
Those of us who've been through a recession or two know that it's now a waiting game to see how hard and how long it will last, so tighten down the belt strap a little and reign in some of the discretionary spending and hope that the powers to be course correct in a way to minimize the impact of those who are living on fixed incomes, unemployed, or just struggling to get by.
Wouldn’t it make more sense to address the supply side issues directly vs. jacking interest rates up to obscene levels in order to bring down already inelastic demand? It occurs to me that forcing layoffs and jamming the economy into a severe recession is a very cruel way to solve what really is a supply problem brought on by failure to fix supply problems at the ports, failure to incentivize workers who have left the labor markets altogether (through endless loan deferment and other policies), failure to stop Putin’s narcissistic war (by taking the necessary deterrence off the table), and failure to properly manage energy supply availability. Instead, we will intentionally destroy our own economy and see how many people need to be laid off for gas prices to drop by November. Poor strategy I’m afraid.
It’s a great deal more complicated. And while the supply/demand ratio is valid, we are a global economy. This is a consumer-driven spending problem.
There is only so much that can be done just in the US. The Fed manages the money supply and they are doing everything they can. There is only so much that can be done at ports when there are not enough trucks on the road. Nobody is forcing layoffs…in fact, we need more workers, not less!
I believe it is much, much too early to suggest the current monetary policy will drive us into a deep recession. Our economy is fundamentally driven by consumer spending. People finally able to put Covid somewhat in the rear view mirror are doing and spending. Supply chains were coming back - until Putin decided to be Peter the less than great.
Energy supply is managed by big business energy companies. They cracked when the money was good and sold as an export when they could get better pricing elsewhere. Cramping Putin by not buying Russian oil is a practical strategy to hurt his finances.
What, exactly, do you feel we should be doing vis a vis Putin to “take the necessary deterrent off the table?” Are you willing to gamble on a nuclear WWIII or can you exert a little more patience and let things play out?
Yes, we should gamble on WWIII. It's not actually so crazy - Reagan would have already done it, and there never would have been an invasion. Putin is a tyrant, and tyrants understand one thing, which is power. It was foolish to pull US troops and diplomats out of Ukraine - we gave Putin a green light. Do you believe Putin would start a suicidal nuclear war if Biden told Putin to end the war this week or face decisive intervention? Me neither. He'd simply declare victory, dig a new trench, and be done. In a world full of cowards, the bully is King.
I hope you're right on both the economy and appeasement. I fear otherwise, but I hope it all works out for the best.
Gamble on WWIII? That’s insane. Are you active duty military? Want to see a real recession?
Nuclear weapons are the wild card. If you can predict what Reagan would have done you are kind of a wild. And yes, I do believe Putin would use nukes if he felt he had nothing left to lose.
Last time I checked we had no troops in Ukraine as it is not a NATO country.
Yes, we had troops in Ukraine that we pulled out IOT roll out the red carpet for Putin's rapists and murderers. I am a combat vet, and yes, I'm serving and would already be pulling my boots on if I had the opportunity to go help eliminate Russian war criminals from Ukraine. My wife understands why, because I shared Ronald Reagan's "Rendezvous with Destiny" speech with her while we watched the Russian tanks rolling in in February. My kids would at least know their Dad was the kinda guy who doesn't watch a rape and do nothing.
Putin would have something to lose if it was clear our involvement was limited to defending Ukraine (as we agreed to do in the 90's when the gave up their nukes). I would not advocate hitting targets in Russia or pushing for Russian regime change.
If you like, Google the speech... starting at "We cannot buy our security, our freedom from the threat of the bomb, by committing an immorality so great..."
Inflation is too much money chasing too few goods (demand and supply). We now have "too much money" because the Fed kept interest rates artificially low for a decade ("free money") and Biden been printing trillions of dollars for the past 18 months. We have no supplies (gas, groceries, goods) because Biden and his Blue state governors locked down the country (truckers, factory workers, service workers, etc) and now we can't make anything and we can't move anything from Port A to anywhere. And we have a gas shortage (with $6/gal) because Biden told the oil companies on day 1 that he was going to put them out of business so they shut down their oil rigs, gas refineries, and drilling exploration. So guess what? Biden turned off the oil/gas spigot and a shortage (scare goods) always causes prices to go up (legally). Everything we experience now was 100 percent predictable. Putin's War only added a tiny bit of fuel to the fire. This is Bidenomics at work, not Putin's fault. And there is precious little the Fed can do about it now - the damage is done. The Fed should just butt out of the way (as should Biden) and let the economy sort itself out. Economics 101. We would be just fine. "That government is best that governs least"--Thomas Jefferson.
Wow, so much to unpack here.
- I was unaware the president could print money.
- nothing is locked down but when it was it was on Trump’s watch.
- I would like to see legitimate news reports showing Biden telling the oil companies he was going to put them out of business.
- how does a president turn off the gas spigot? Oil companies control that.
A little overreach on your part here.
Patriotism is the last refuge of the scoundrel".
— Samuel Johnson
Sept 6, 2019: "I guarantee you. We're going to end fossil fuels."
https://abcnews.go.com/Politics/wireStory/intimate-moment-biden-vows-end-fossil-fuel-65442382
Biden issues fiat Executive Orders to stop oil drilling rights:
https://www.cnbc.com/2021/01/27/biden-suspends-oil-and-gas-drilling-in-series-of.html
When the President signs deficit spending laws, the Treasury borrows money from the Federal Reserve to pay for that govt spending, so the Fed has to "print money" (as Treasury Bonds) to loan to the Treasury. See explanation:
https://use.typekit.net/vba3erx.css
At 57 and being in the construction/contracting business my whole life I have lived through several downturns. 2008 was bad, I had a couple friends go bankrupt. Number one thing is to get rid of as much debt as possible. Fortunately, I am 100% debt-free and not overly concerned about the economy slipping, it always does. I still work part time and have saved and invested for the imminent rainy day.
The older I get I realized time is more important to me than money. We live fairly simple lives below our means but still do anything we want, which isn’t that exciting to lots of people. We’ll all get through this, we always do and life will go on. Cheers!
Edit: The biggest lessons I have learned are:
T
1. Have a skill that is always in demand. I have 4 state licenses for various trades that will ALWAYS be in need 2. No or very easily manageable debt, I can’t say this enough. 3. Live below your means, stop buying stuff on credit if you can’t afford it. 4. Have a good partner with same mindset. My wife and I have been together for 37 yrs and we still like each other.
Wow, this is spot on! I’m 58 and feel pretty much the same way and concur with the lessons. I’ll just add: I’ll respond to a recession like I responded to the pandemic, by taking joy in the simple things that are close at hand. Living simply allows you to ride out these ups and downs.
very true
I am 68 with enough SS and an annuity to live comfortably. No car payment, very small house payment, married and we both have about the same income. Our strategy is no debt (except house), no extravagance, live simply.
The economy will be worse before it gets better. I have done without A LOT of things to have a paid for house and truck. Luckily I did away with credit cards years ago, so while feeling a financial pinch right now, won't be a disaster. Just wish I had been a tightwad much sooner.
Me too! Retirement seemed so far away and now, boom, it's here!
I worry less about the state of the economy than how it will affect coming elections.
Indeed
When I retired we moved to a better cost of living area (low property taxes) near a progressive city and mountains where we love to hike, living in the foothills where we love to bike, both healthy and inexpensive activities. We could have purchased a home in the same price range but instead downsized and paid cash. No mortgage! The only debt is a zero interest auto loan so we could keep our cash invested.
We are on full SS and I earned enough to max that out at full retirement age this year, just in time for the market nonsense and inflation. We supplement with a small amount from investments and savings. COL adjustments help keep SS relevant. The planning for today began years ago and the strategy implemented along the way is paying off.
You’ve heard the advice to wait out market volatility; it is true. We’ve been through a dust up every 10 years or so. Our investments today are worth less than last year (still more than two years ago) but we only need a small amount today. We have made enough on them in the good times to wait out the bad. Investment balances mean nothing unless you need all the money at one time. It is generally a long game, even when you are retired.
My 2¢:
- save and invest when you are working
- use someone with knowledge to help you manage investments
- manage your borrowing when you are working
- be debt-free when you retire
- develop interests that are healthy and cost effective
I’m 54 and saw this coming as soon as the government started the multiple rounds of stimulus/money printing. I have paid off my house, cars and all other debt while also putting away cash to take advantage of the stock and housing market corrections.
If you have been living within your means and working hard this recession is an opportunity to gain wealth on the other side.
I remember the late 70’s and early 80’s when 7.5% car loans were consider good rates. We still lived a good life, but we lived within our means.
I’m much more concerned about food shortages in the next year or two than I am about the recession.
At 61 and a retired teacher, I recall the high interest rates on mortgages if the 1970’s, and the terrible downturn of 2008. I learned that you have to live below your means at all times (not to be confused with complete penny-pinching deprivation), focusing on what is of value to you in the long run. For me, I always saved retirement money, I took my kids on travels (domestic and international), and I refrained from equating my image of myself with the material goods in my possession.
Am I concerned about a current downturn in the economy? Yes, but I think that it will be short-lived, in this case maybe a couple of years rather than a decade.
Well, dejavu! Bill mentioned 1980. I was an employed adult at that time. I had a min wage job late 70's at around $3.00 hour working retail. I had been used to paying about $1.60 for gasoline. By 1980 I was paying almost $3.00. Gasoline was rationed. Inflation was 15% +/- . It was rough and scary. I didn't know how I was going to make it. I ran up credit card debt to make ends meet. I had an acquaintance at the time that bought a house at 15% . I remember how fortunate I felt when I was able to buy a home ' owner-finance ' at 10% interest. That having been said, these last few months have brought my memories of the late 70's back to life. I have children in their late 40's now. I have brain-washed them to minimize debt no matter how successful they are, to be conscious of gas efficiencies of their vehicles, and you don't need $250 tennis shoes. Most importantly, all you really need is a roof over your head, a car so you can get yourself to work and food on the table; everything this else is just fluff. So to the rest of the world I say, ' just hang on, this too shall pass '.
I'm worried about where we are going from here. Not just economically, but philosophically as well. We've been bombarded by negativity the last 2-3 years: Pandemic quarantine, the assault on our seat of democracy and now the economy going kablooey. The one commonality among all this was we, as Americans could do nothing about it. I would say that after more than 2 years of sitting around helplessly watching our society disintegrate around us we have grown weary. The next chance we have to feel in control is 2024. I believe change is coming. Maybe not for the better, but definitely change. I'm staying positive and hopeful. As a famous man once said It's better than the alternative.
lol and high applause
As The Washington Post says, “Democracy dies in darkness.”
We can vote.
We can vote this year.
We can vote again in 2024.
Want some insight? Read the book How Democracies Die.
If you remember 23c/gal gas, you no doubt remember Whip Inflation Now - another great government plan. Young folks now are "fortunate" to be able to tell their grandkids "I survived the 2022 inflation spiral and market meltdown" (hopefully not recession) just like a few of us can say we survived the Seventies OPEC oil shock and inflation crisis, and the market crashes of 1987 (global), 2000 (internet bubble), and 2008 (housing finance bubble). A non-war badge of honor. A "tuition-free" edumacation. Former Fed Chair Greenspan's "Law of Irrational Exuberance" has not been repealed. But apparently our Federal Reserve hasn't learned yet. Professor Mohammed El-arian said it best yesterday: "We need a more honest Fed."
'edumacation' I love it , 'a more honest Fed...oxymoron
we need the fed to quit playing politics. They should have slowed this down when the unemployment rate hit 6% and coasted to a normal economy. Instead they kept on the gas until way to late. Think aircraft carrier not sports car.
Everyone saw this coming but they said it was going to be transitory. You even have Janet Yellen, the ex Fed chief, now in the administration that kept insisting that this was temporary. I'm not an economist but it makes me wonder how our brightest minds weren't able to see this coming and take action before it became a crisis. And supposedly they're politically neutral. Hmmm.....
As a pensioner we are pretty much on a fixed income. We started the retirement gig 2 years ago just as COVID was starting. Everything looked dire as our investments dipped and then they roared back. Now we see another substantial dip, but the key concern is inflation. It was estimated by Bloomberg that the average cost caused by the inflation over past 12 months is an increase in costs of some $5,000 a year for a basket of common purchases from food, energy, clothing etc. The problem is that we rarely see those costs reverse itself. Multiply that cost out over next 25 years and we will spend $125,000 more than we would have. Our only hope is that the inflation juggernaut slows down as our income is not multiplying to keep up.
I'm 63, my hubby 67 and he will be retiring August 1st. I'm beginning to have nightmares thinking about everything financial going on and prices for everything rising so much. We will be losing 2/3 of his income when he retires and will only draw on Social Security at this time (trying not to touch retirement $$ while I'm still working). We still have a mortgage and car payments as our only debt, no credit card balances. We use them (for rewards) and pay them immediately. We have paid $9,000 in credit card debt and our $15,000 equity loan in the last year in preparation for hubby's retirement. I am an excellent cook and baker and make really good bread, freestyle and in the breadmaker. So we will be doing a lot more meal prepping, bread making, canning in the future months to try to sail these rough financial seas.
After surviving the 2020 riots a little transitory inflation shouldn’t be a problem. Hopefully Putin will ease up on his gas price hike soon.
Putin didn't hike the price he is just the benefactor of our police to shut down fossil fuels before we had the alternative in place.
What??? Our police? And if anyone is shutting down fossil fuel production it is the oil companies who make money one way or the other. Has nothing to do with clean energy policies/changes.
...and some governors, don't forget governors
our policy not police
Jim, Jim, Jim, do I sense a little sarcasm in your editorial? I'm sure Vlad is sitting over there trying to figure out what he can run these energy prices up to, when he's not thinking about the war.
my kind a(of) comments (!)