There is no use of such debates as we can not do anything about external issues.
Even Warren was venting it out !
The best is to protect ourselves from inflations and recessions, make ourself financially free.
Here , in USA, with business economy savings won’t give great returns!
Read some good investments books and choose our best course to grow money effectively.
buy RE then. You can lock in low rates on today’s dollars and pay it back with inflated dollars and your asset will appreciate at at least the rate of inflation
After a price jump of 50-80% in one year?
if you are holding for 10 years, does it matter? or buy multi-family. they went up 10-20% only and now you are gapping again where it’s far cheaper to rent then to own, so rents will have upside to run. and a multi-family is like buying dividend stock, you get cashflow + appreciation. Won’t appreciate as much as SFH, but you are not burning cash to keep the asset for appreciation.
If you don’t want to buy a separate property or don’t have enough down payment to do so, then take a HELOC against your appreciated home (many SFHs around here have appreciated by 500k or more in past 6 months). Use the HELOC at low interest rate to expand your home or build an ADU. 200k investment and property value will increase by 300-400k. So, 50-100% ROI right away.
Enjoy the ADU or bigger home to host family and friends or as home office, and make more money if and when you sell years down the line
I have seen that over the last 10 years, people have gained a better appreciation of the ill effects of money printing. Better information leads to better decisions at the level where power is held. Better information leads to better action. What we can do is slow but things get better with better information.
I have noticed Some of the beliefs held in this forum are now better appreciated like:
real estate values are not linked rent. I was surprised when people made statements like rents do not matter in the appreciation market.
money printing does not hurt.
unlimited building in someone else’s backyard will lead to affordable housing.
politics does not matter.
So what about investments in equity markets of countries which don’t have the latitude to print money?
Asia had it’s crisis in the late 90’s. Scared some sense into them. Plus, those countries don’t have reserve currency status.
And there’s always gold. Should be 5% or so of everyone’s net assets.
Good point. MMT wants latitude to be given to countries to be able to print. According to Stephanie Kelton, money printing works best when the currency (to be printed/replicated) is not tied to other currencies. Sounds foolish? Probably that is the reason, US policy maker are least concerned about USD as a reserve currency. They will let USD trash to the point where it can be cheaper than a piece of tissue paper.
Both are 100% right for USA standards. At very high level, money is a medium of transaction. If productivity increases with money printing, as a country it will work, but will hurt who is using savings only account. There is no point in discussing about USG/FED actions.
You can not hold FED hands or USG hands not to print money. They do what is best for country, no matter who is in government.
Not properly educating ourselves is a blunder.
Unless you educate, buy amazon old books, yourself proper investing strategies and spend some personal time (at least an hour in a day), it is hard to hold as inflation kills it.
We are circling back to this discussion.
Money has primarily four functions. One of which (and the most important one ) is to store value. Money printing destroys the storage function of money.
I do not know what good a broken money does to the country and the economy! The world and economy existed before 1971 before the USD was take off gold standards and money printing became easier to do.
I repeat, you can not change the world, the way you want !
You can change yourself how to live in this world !
I stop here as I do not like to go on discussion.
I agree with what you say. In short term, very difficult to change the way things are.
There is systemic inertia, and then we have to live through the consequences of things that have been set off way earlier and whose consequence we are living through. However, to some degree, we can influence what comes next.
That said, I agree to you that we need to do what we need to do take care of what is imminent.
Today reverse repo (Money market) reached 817 Billions !
If people give a range then I am perfectly OK with judging them by the range. It’s not what Panda did though. Not only did he give out exact date and exact price, he also predict how the price will get there. It would follow those voodoo zigzag lines.
can someone explain the development in plain english?
Even WSJ writes such arcane language! Title is just made to attract readers, but post does not have any answers or clarity.
I remember Seth Klarmann here. => News/Media is behind its rating/circulation, but they are not doing service to people to tell the truth/information !
In short “Investors have started storing billions of dollars at the Federal Reserve each night, and no one is quite sure what it means.”
Simply said, too many people sold stocks, keeping the cash on money market funds for this reasons:
Holding stocks potentially may affect the values
Holding cash will be reduced by inflation
Then, if money managers need to maintain $1, they buy overnight reverse repo and get treasuries, that is the safest and reliable way. Banks may, in case of recession and possible side effect, file bankruptcy but FED won’t ! This is like savings account for big banks/institutions.
This is why reddit is famous, some are very productive discussions.
Multi-Million users market is very sensitive and they tend to vote right on economy! Reverse Repo increase provides us a glimpse of their loss in confidence, keeping huge cash on sidelines.
So people continue to fight the Fed… SMH.
Don’t. Fight. Da. Fed.
Far cry from 
