Inflation doesn’t hurt those with most of their wealth in assets but clobbers the poor and lower middle class who have their meager savings in cash. With today’s headline unemployment numbers it’s a far greater threat to their well-being than a minor or even modest recession.
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This is real labor income, ie income after you take out inflation:
Look at graphs of the poor ie the bottom 25%, vs the rich top 25%. The poor’s income languished for more than a decade after the GFC. That’s the time when Larry “I want to see more pain” Summer and Jason Furman were working in the Obama admin. They were worried how the OMG 900B stimulus would stoke up inflation and so didn’t dare to go big. What resulted was 10 years of misery.
Now they are preaching the same lesson again. But see even with all those big bad inflation out there, the real income of the poor still rose at record speed. Of course now they want people to suffer, all in the name of the sacred 2% inflation target.
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So inflation hurt all. Go for recession.
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Graph looks to show an inflection to a higher level from 2017 through COVID and then, if you take out COVID, a leveling off (drawing a line between 2020 and current point). Hardly an argument that massive money printing and the resulting inflation made the poor better off.
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Mathematically speaking, OER would start declining from Jun*. So don’t spread FUDs.
Note: * If don’t know why, consult the high IQ 130 Math Major, @manch.
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Do you know why they are still using OER in today’s highly digitized economy?
In Singapore, even though property transactions are considered private transactions, stamp duties are levied on such transactions, so government know all the transactions.
I have no idea other than government inefficiency is amazing. There’s a team of people who are employed for the current method. Switching methods would result in them losing their jobs. The fed is a monopoly, so there’s no competitive or incentive for efficiency.
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You mean if you took out the worst pandemic in the world for a century, things would have progressed more or less the same? Therefore no need for government intervention?
If you took out the cancer from the cancer patient, or the heart attack from the heart attack patient, you would also find out there’s no need to put them into hospitals. You could conclude the hospitals hardly made the patients better off.
Except I don’t know how you can take those out short of performing Harry Potter magic.
I’m just looking at the slope of the curve over time.
Oh and the huge drop was caused by government interventions, not ameliorated by them.
The same data from Redfin I posted a few days back in another thread.
Rental prices are easing after years of soaring during the pandemic.
Median rent fell 0.4% to $1,937 in March from a year ago, according to a report released Friday by Redfin Corp. It was the first annual decline since March 2020, when the pandemic began, the real-estate company said. The drop brought rents to their lowest level in 13 months.
According to Redfin, the biggest decline was in Austin, Texas, where rents fell 11% in March, to $2,104, from the same month a year ago. In Chicago, they fell more than 9%, to $2,206.
I have two properties coming on the rental market I am raising the rents because they were artificially low due to rent control. Let’s see if rents are dropping. So far no push back on rents raised 8% on existing tenants. Still under market.
Definitely more inventory in Tahoe… but most Zillow listings are actually vacation rentals with very high rents… basically hoping to get high summer short term leases.
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Title is misleading… rents for SFHs are still rising. Median rents were dragged down by declining rents of multi-family and apartment.
Resale market for entry level homes is hot. Rental market for move-up SFHs is hot. Other market segments are cool.
Since less people are buying due to high interest rates my guess is class A apartments and sfhs will actually go up in price and the tenants will be better candidates. I will report back. Both my units are nice sfhs. In Tahoe a 3/1 1300sf remodeled. Asking $2500. Many 3/2 houses go for $3500.
Lowest inventory for sfhs for sale ever in South Lake Tahoe… less than 40.
The other is a 2/1 1500sf guest house near Cameron Park asking $2200
In the middle of a vineyard surrounded by $1m estate homes and 45 minutes from the capital…. Where all our money goes… lol
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Sweden’s central bank raised its policy rate by half a percentage point to 3.50% as expected on Wednesday and said it was nearly done with policy tightening, delivering a dovish message that surprised markets and sent the crown tumbling.
In Sweden, underlying inflation - at 8.9% in March - has started to ease, but remains far above the Riksbank’s 2% target.
“Inflation is high and that’s worrying. But we also see a development where inflation is going to slow, that’s our main scenario,” Governor Erik Thedeen told reporters.
WTF? Sweden’s inflation is 8.9% but slowing down, and their central bank says they are about done? We only have 5% inflation here in the US, also slowing down, and JPow hiked rates to 5% and wants to keep going? How come we can’t have more sensible people at the Fed like the Swedes?
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Brazil is about to cut rates!
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Amazing payments are still paused when unemployment is well below normal. This will suck some money out of consumer spending. It should help cool inflation at a faster pace.
I think this should be bullish news, since it means the labor market is cooling. The fed can stop rate increases soon. The question is will they?
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While revenge spending in USA is fading, revenge spending in China has started roaring. Would inflation in USA stay elevated or gradually declining as what JPow claim?
Too hilarious.
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I really wish there were logic and intelligence exams to allow people to hold office. Maybe even worse is there are people who support these idiots and actually vote for them.
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