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Old 05-12-2022, 10:08 AM
 
30,253 posts, read 11,879,363 times
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Quote:
Originally Posted by Mikala43 View Post
Yep, and China's covid problems have become our supply chain problems.
Our dependence on China which was created by our federal government allowing China to have favored trade status with us. And doing nothing about all the jobs and factories that went away.
Quote:
Originally Posted by Mikala43 View Post
One can always say all the "Fed" agencies of the first world countries caused out problems, but if they did something different, then we would have a different set of problems for everyone to complain about. Essentially posters saying THEY know better than the all the economists and such who guide the governments decisions in these things.

I guess I should have said the US problems are not unique.
The difference is posters here are looking at what is best for them and the average American and the fed is looking at what best for the biggest corporations and the 1% at the top. Basically those at the top who donate the most to the politicians in Washington. They know who butters their bread.
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Old 05-12-2022, 10:24 AM
 
15,568 posts, read 7,583,489 times
Reputation: 19460
Quote:
Originally Posted by Oklazona Bound View Post
We had a bust in 2008 and another in 2020. And perhaps another not far down the road. And they helped create asset bubbles prior to 2008 and now. And the guy at the helm of the fed has no idea what he is doing. Inflation was in issue more than a year ago and it took them until last month to begin to deal with it.

Fed Chair Powell:

Chairman Powell says higher inflation is temporary, fed will be ‘patient’

Mar 4, 2021 2:40 PM EDT WASHINGTON (AP) — Federal Reserve Chair Jerome Powell suggested Thursday that inflation will pick up in the coming months but that it would likely prove temporary and not enough for the Fed to alter its record-low interest rate policies.

Fed Chair Powell says it’s ‘very, very unlikely’ the U.S. will see 1970s-style inflation

Tue, Jun 22 2021 5:03 PM EDT Among them, Powell cited airline tickets, hotel prices and lumber along with generally surging consumer demand pumping up an economy that a year ago faced substantial government-imposed restrictions in the early days of Covid-19.
Those factors, he said, should “resolve themselves” in the coming months.
The cycle now are far less serious than in the pre-Fed days, where a bust would result in massive job losses, bank failures, wealth destruction, etc. The recessions we see now are a shadow of what happened in the past.
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Old 05-12-2022, 10:28 AM
 
15,568 posts, read 7,583,489 times
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Quote:
Originally Posted by Oklazona Bound View Post
And unlike 2009-2014 the current housing prices have put pressure on rental prices and caused people to move out of places like California. Either because they can no longer afford the rents or the cash out of their high priced homes. So now rents are sky high all over.

If the government instead of just keeping rates low should have encouraged massive building of new homes and apartments. The fact there is no thought process to actions taken by the fed and what other areas will be affected gives me no confidence they will do the right thing now.
How would the Fed encouraged massive building of homes and apartments. In many cases, that's more a local zoning regulation issue than anything. In areas that have geographical constraints on expansion, like the Bay Area, large portions of LA, etc, allowing multi-family housing to be built pretty much anywhere would have made housing cheaper, especially for renters. However, all of the single family home owners that might be affected would go nuts with protests about "you are going to destroy my neighborhood".
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Old 05-12-2022, 10:34 AM
 
15,568 posts, read 7,583,489 times
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Quote:
Originally Posted by Wolverine607 View Post
Exactly. The government was a bunch of buffoons' saying how home prices needed to recover when they in reality did not in 2009-2012 as they were fair valued. They should have encouraged massive building to keep prices stable in 2012 when it became clear there was a shortage of homes. Instead the government cheered on as if it was a recovery when prices started to rise at absurdly fast rates starting late 2012 to early 2013!!

When will the government and society get it through their heads that $110K to $140K for a small starter home in a good neighborhood of a major metro area is not a depressed price, but rather fair value. If the prices of such homes were $60K to $70K, then a skyrocket to $120K would be welcome as $60K to $70K is a depressed price of starter home. Not $110K to $140K. The government and realtors want us to think anything less than $200K is an undervalued price for even a starter condo which is disgusting!! $200K is even pushing it as insanely high price for starter home let alone a condo!! Nevermind the horribly high prices way above $200K for such home today which is exosphere outrageous!! $200K was bad enough already!!
I don't think your $110k to $140k price is realistic for even smaller starter homes. It is nearly impossible to build a house for that price in any major metro area. We live in a 1400 sq ft house built in the early 50's in Central Houston. Replacing the structure with a similar one would cost close to $200 per sq ft. Cutting a bunch of corners might get us down to $175 per sq ft. That's still $240k, and doesn't include the land, which for us is worth $1.4 million per acre.
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Old 05-12-2022, 10:42 AM
 
956 posts, read 512,604 times
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Quote:
Originally Posted by WRM20 View Post
How would the Fed encouraged massive building of homes and apartments. In many cases, that's more a local zoning regulation issue than anything. In areas that have geographical constraints on expansion, like the Bay Area, large portions of LA, etc, allowing multi-family housing to be built pretty much anywhere would have made housing cheaper, especially for renters. However, all of the single family home owners that might be affected would go nuts with protests about "you are going to destroy my neighborhood".
The Federal Reserve does not have any ability one way or another on building of homes. But other government agencies do? The fact is in late 2011, there was an article I remember reading on Yahoo finance that suggested bulldozing homes to put a floor under prices which is disgusting!! Given that 6 months later, shortages of homes were an issue which lead to the high increases in prices starting late 2012 to early 2013.

Oh yeah I feel so bad for people who own homes if the price goes down a little more. Oh no feel s bad for those irresponsible home owners who have less than 20% down payments or worse yet use HELOCs without paying them off. Absolutely degusting and same crap been going on that got us into 2008. I have no sympathy for people who use HELOCs for any purpose other than paying it off like a regular loan just for a federal income tax write-off. But all these Rocket Mortgage commercials advertising equity i your home as money makes me want to throw up. And no I seriously doubt they are advertising it so you can pay it off like a regular loan only backed by home equity so you get a tax write-off. Which my dad says is only acceptable form of HELOCs and any others are a problem waiting to cause a disaster.
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Old 05-12-2022, 10:46 AM
 
Location: Everywhere.
2,061 posts, read 1,617,061 times
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Quote:
Originally Posted by Mikala43 View Post
Again, not a US issue, a worldwide issue. There is nothing Trump could have done to bring the US through wars and a pandemic unscathed. You think he could have made us the only country with no problems?
Trump took the appropriate actions for the pandemic(vaccine development, stopping air travel to/from China, etc). He also would have known how to stop the Ukraine war before it started. There’s no country on Earth that has “no problems”.
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Old 05-12-2022, 10:49 AM
 
Location: Middle of the valley
48,581 posts, read 34,980,811 times
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Quote:
Originally Posted by Oklazona Bound View Post
Our dependence on China which was created by our federal government allowing China to have favored trade status with us. And doing nothing about all the jobs and factories that went away.


The difference is posters here are looking at what is best for them and the average American and the fed is looking at what best for the biggest corporations and the 1% at the top. Basically those at the top who donate the most to the politicians in Washington. They know who butters their bread.
Hm. I would say our Federal Gov allowed it. You want to see CRAZY inflation? Don't allow that trade with China. /lol

People are "the US needs to make all this crap we buy from China!!!!" I can tell you, the price would be so high if the US made it all, then no one could afford it, and it just wouldn't be bought.

I DO think we should insure our capabilities for important things like meds and food. Heck, I don't think China should own so much of our food processing.

I know some people like more government control on what people can and cannot do, but we ARE a country of freedoms, so when we want to buy stuff cheaper from other countries, we do. Definitely pros- and cons-.
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Last edited by Mikala43; 05-12-2022 at 10:59 AM..
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Old 05-12-2022, 10:58 AM
 
7,984 posts, read 3,918,759 times
Reputation: 14996
Quote:
Originally Posted by k374 View Post
...people being laid off now losing their jobs ...
Incorrect. If you have a pulse, you can get 2 or 3 job offers without trying.

Quote:
Originally Posted by k374 View Post
and slowly but surely people are also going to start losing their homes
Incorrect. Family balance sheets are stronger than they ever have been in history.

Quote:
Originally Posted by k374 View Post
as the housing bubble pops.
There is no such thing as a bubble.

Quote:
Originally Posted by k374 View Post
Time and again they have created these asset bubbles
No such thing as a bubble.

Quote:
Originally Posted by k374 View Post
When is this going to stop?
You're referring to rambling posts full of misinformation by people who never passed Econ 101?

Quote:
Originally Posted by k374 View Post
People now are going to lose jobs
Still wrong.

Quote:
Originally Posted by k374 View Post
people will not be able to retire
Untrue. The senior age cohort is the wealthiest age cohort of all.

Quote:
Originally Posted by k374 View Post
and there is going to be carnage all over...
Nope.

Quote:
Originally Posted by k374 View Post
and these people in suits
Someone has wardrobe envy

Quote:
Originally Posted by k374 View Post
...simply shrug their shoulders and give some BS spiel about how they are trying to "save" us, please!
Decaf. Try switching to decaf.


Quote:
Originally Posted by k374 View Post
...So the question is this
You don't have a question. Your post is really just a rant. Now that you've gotten all this off your chest, to you feel better?
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Old 05-12-2022, 11:01 AM
 
30,253 posts, read 11,879,363 times
Reputation: 18719
Quote:
Originally Posted by WRM20 View Post
The cycle now are far less serious than in the pre-Fed days, where a bust would result in massive job losses, bank failures, wealth destruction, etc. The recessions we see now are a shadow of what happened in the past.
We have a safety net with unemployment and bank accounts are guaranteed. Neither which requires the fed. We had a federal reserve before the great depression. And wrong fed policy made things a lot worse.

I know that before the fed the economy was more erratic. But we seem to have longer and bigger boom and bust cycles now.
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Old 05-12-2022, 11:02 AM
 
7,984 posts, read 3,918,759 times
Reputation: 14996
Quote:
Originally Posted by hulburt1 View Post
Joe did this. He cut the oil for the green new deal. How do you think things move by horse? This is the government at it's best. If you have no job you have no money for a $60000 electric car.
Everyone who wants a job has a job and receives calls from headhunters more often than calls from people selling extended car warranties. Twenty-one year old new college hires with zero experience are now getting multiple job offers over $100,000 per year.
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