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Old 05-16-2022, 12:44 PM
 
956 posts, read 512,731 times
Reputation: 1015

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Quote:
Originally Posted by Oklazona Bound View Post
There is also OPEC. If we did ramp up production they would lower production to keep prices up. It gets tiring hearing that US oil companies are to blame for higher prices. OPEC manipulates the market not US oil companies.
Why did OPEC not do that in late 2014-2019? Well they did to keep prices from falling too far and keep them $55 to $76. Not the insane $110 to $114 we have now.

Though last time oil was this high gas prices were not as high as they are now. Holly cow, gas prices are higher than they were when even w=il was $145 a barrel peak in 2008.

I mean we are seeing $4.30 plus gasoline and even $4.50 or higher. When oil was last this high gasoline was very high $3.XX or maybe low $4.XX.

When oil was $140 a barrel, gas was like $4.19 to $4.29. Have production costs increased or gouging going on now??
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Old 05-16-2022, 03:48 PM
 
18,255 posts, read 16,965,861 times
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Quote:
Originally Posted by thrillobyte View Post
There! You see?

60 months or 60 years, if Powell says he has it under control who's worried?
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Old 05-17-2022, 02:16 AM
 
Location: Spain
12,722 posts, read 7,603,680 times
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Quote:
Originally Posted by thrillobyte View Post
60 months or 60 years, if Powell says he has it under control who's worried?
Do you think there will be 70s style inflation?
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Old 05-17-2022, 08:36 AM
 
Location: TN/NC
35,133 posts, read 31,431,958 times
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The Fed was slow to respond to inflationary pressures. They aren't responsible for all the fiscal stimulus since COVID, Trump tariffs and tax cuts, and supply chain issues that are contributing to the inflationary pressures.

What they are responsible for is largely bad monetary policy going back to the Great Recession.
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Old 05-17-2022, 09:38 AM
 
Location: Oregon, formerly Texas
10,075 posts, read 7,267,859 times
Reputation: 17151
Every time the price of gas spiked his high there was a recession the following year. Can't see how we don't have one now.

Before the current run-up I thought a soft landing was possible. Now? The Fed is going to have to continue the 50 bps raises until this gets under control. Not sure what that'll do to housing. Mortgage rates are already well above 5%, they'll be 7% by mid-summer at this rate.
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Old 05-17-2022, 12:40 PM
 
3,312 posts, read 1,724,870 times
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When will bailouts be needed? Soon many companies will probably send pink slips and then close down. The lending market is gonna take a huge hit once the next set of interest rate hikes and housing start to decline.
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Old 05-18-2022, 01:42 AM
 
Location: Spain
12,722 posts, read 7,603,680 times
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https://www.msn.com/en-us/news/world...e21d72e0e73cc8

Quote:
Britain's annual inflation rate surged to a 40-year high last month on rocketing energy costs, official data showed Wednesday, sparking opposition calls for the government to announce an emergency budget to combat a cost-of-living crisis. Consumer prices index inflation hit 9.0 percent in April from 7.0 percent in March, the Office for National Statistics said in a statement. The ONS estimated that April was the highest level since 1982, and the fastest rate since the current data series began in 1989.

Nations across the world are plagued by decades-high inflation as the Ukraine conflict pushes up energy and food prices, in turn forcing the Bank of England, the US Federal Reserve and others to ramp up interest rates.
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Old 05-18-2022, 03:47 AM
 
4,802 posts, read 3,519,677 times
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Quote:
Originally Posted by Mikala43 View Post
You mean inflation, not interest rates.
Yes, that was the 8.5% I was speaking of. I am sure the rates will be there before we know it. And we will tell stories to our kids how interest rates were in the twos a few years ago.
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Old 05-18-2022, 03:52 AM
 
4,802 posts, read 3,519,677 times
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Quote:
Originally Posted by MKTwet View Post
When will bailouts be needed? Soon many companies will probably send pink slips and then close down. The lending market is gonna take a huge hit once the next set of interest rate hikes and housing start to decline.
Small companies wont get the bail outs. Just the ones that feed the right politicians with donations etc, will potentially get bailouts. Too big to fail..
We all need to start worrying about our own self. Food prices, in conjunction with oil/gas prices, is going to pinch many of us very hard.
History has shown, we, the lower class of society, will be hit with the brundt of poor fiscal management and policys of the Federal Government.

And, I see it a lot - folks call the government incompetent. I disagree. they are exceptionally competent. It's how they got there in the first place - being magicians with other peoples money. Immigration isnt a mess because the gubmint is incompetent...
...its because they WANT it to be a mess. Crime isnt rampant a because the gubmint is incompetent
...because the gubmint wants it that way. Global governments are constantly being destabilized
...because bigger governments want it that way. Our economy is a dirty, sooty, stinking, smokey dumpster fire.
...because our government wants it that way.

Anyone that thinks our gubmint is incompetent and unable to manage funds needs to look a little closer.
They are ALL multi-millionaires who somehow manage to outperform ALL of the best investment funds.
They do this while passing legislation that fights crime, treat diseases, saves the environment, clothes the poor, feeds the hungry, and...
LOL, I cant even keep a straight face while I type that

They are all rich because they are GREAT at managing money. They just aren't managing money for OUR benefit. Martha Stewart went to prison because she didn't want to talk about how she traded stocks...
...elected representatives do it above board with no shame. Elected representatives have sold their constituents down the river over the last few years and think we should just go screw right off for being upset about it.

The Financial Markets are in turmoil because a lot of Jeffrey Epstein's friends want the financial markets to be in turmoil.
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Old 05-18-2022, 08:30 AM
 
956 posts, read 512,731 times
Reputation: 1015
Quote:
Originally Posted by Serious Conversation View Post
The Fed was slow to respond to inflationary pressures. They aren't responsible for all the fiscal stimulus since COVID, Trump tariffs and tax cuts, and supply chain issues that are contributing to the inflationary pressures.

What they are responsible for is largely bad monetary policy going back to the Great Recession.
Bingo. All the horrible QE and low interest rates was a horrible mistake.

They should have never done ZIRP and QE certainly not to push down mortgage rates. And certainly not once mid 2012 hit and there were inventory shortage of homes to buy. They should have raised interest rates at that time and sold off all their MBS to keep housing prices stable rather than rise too fast. It was clear by then that the threat of prices falling much more was over. For all the whining that prices were depressed (BTW they were not!!!) and needed to recover, the threat of further falling prices needed to stop, and a stabilization or gradual rise needed to start occurring. In early 2014, I remember reading articles from Diana Olick about sticker shock and in early 2013 a new hosing fear about prices rising too fast. So most people were not pleased with fast rising home prices. And it was no recovery that was needed as a fast rise was back to artificially inflated prices of 2005-2007 rather than depressed prices undervalued coming back to historic norms in all Metros.

$120K to $150K is a fair price for a small home in a decent/good neighborhood. Its not some depressed bargain price.

Now $60K to $70K. Now that is a depressed bargain basement price for such a home once again. Not the low to mid $100Ks which is a reasonable and fair value for such homes

All thanks to QE and ZIRP and low lending standards allowing little money down, home prices have been outrageously inflated since 2014-2015 now putting starter homes at $200K and now over $300K. Yuck!!

And now inflation is spreading to everything!! Disgusting. The Fed was a bunch of idiots thinking just because QE in 2009-2014 did not appear to cause inflation in much other than homes, they could do as much in only 6 months in 2020 when covid hit and not feel consequences. There was actually to much inflation from 2009-2014 QE even in more than just homes that was hidden and much masked by things being produced in China and other overseas areas. It was still bad monetary policy as such And the FED having this attitude that inflation could run hot to promote an insanely fast recovery and saying it was only transitory after covid was playing with fire. It now may be too late!!

Last edited by Wolverine607; 05-18-2022 at 08:44 AM..
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