“inflation hurts poors so don’t print money” was definitely not the point I was trying to make. My point was that inflation is not uniform and its possible to have an increase in money supply result in inflation of asset prices with minimal impact on consumer goods.
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go on
I wouldnt go so far as to say that it helps the poor. It probably helps homeowners with mortgages the most since the cost of their mortgage balance goes down in real terms but the sticker price on thier house goes up. For very poor people their only asset is their Present Value of labour and if their wages grow by less than inflation then they will get buried as their rent, utilities, food etc go up. Sure, the real cost of their credit card debt will go down but that is cold comfort when the sheriff is tossing all your stuff out to the curb.
And credit card debt is tied to the prime rate, right? So if inflation rises the prime rate will rise as well. People with fixed rate mortgages will be helped by inflation but not so much people with credit card debt.
I generally agree, but I think some of the poorest people, if they are able to get credit cards at all often get ones that have like a fixed 18% interest rate or something like that.
Don’t all of us have high interest rates on credit cards? I have top notch credit and I’m pretty sure the interest rate on all of mine is around 20%. I never carry a balance so it doesn’t matter but I just assumed that was normal, are their low interest rate cards?
The stock market has recovered from the crash in March thanks to immense stimulus. So I guess the economy is back to full speed too?
I had a card for a few years that was Prime + 3.75% because I threatened to switch banks and the sales person I was dealing with panicked.
A few years later someone from the bank canceled the card and told me there was no way they could allow that to stand, and they weren’t even sure how it ever got approved. I did give it up but was able to needle them for some other favorable rates / fees.
Anyway, if you actually have assets your fees and interest rates with banks are probably negotiable. Most people aren’t interested though and frankly would prefer to avoid the perceived conflict of a negotiation.
I actually have no idea what the interest rate is on the cards we use because we don’t carry balances either.
That doesn’t follow at all from what I said. I didn’t say that the economy and the stock market act in lockstep or perfectly reflect each other, I said that the same stimulus will tend to have positive effects on both. Not necessarily timed the same or the same magnitude.
The stimulus that helped the stock market has had minimal impact on the economy for the bottom 50-70% of people. The stuff that helped them was mostly separate (CARES for example) and the market didn’t care much when it expired.
so stimulus talks failed again, SPY dropped to -1% and but has already recovered back to -.35%. Nasdaq was briefly red, but is now up .4%.
So as far as I can tell:
Stimulus = bullish
No stimulus = bullish because the market crash will cause a larger stimulus
Stimulus talks = bullish because it leads to stimulus
Stimulus talks fail = bullish because the market crash will cause stimulus talks to resume
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Delta Airlines announced earnings today of minus $5,400,000,000 for the past 3 months while we have been OPEN FOR BUSINESS. Bullish AF.
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ha decided awhile ago i have no idea what’s going on so i just index fund it and let it ride because of shit like this
Well, I finally bit the bullet and shorted a stock for the first time in years. Bought shares of Berkshire Hathaway and shorted Apple, with the belief that Berkshire’s ownership of Apple (and the $100 billion or so gain) has not been reflected in Berkshire’s stock price.
Result: I’ve burned roughly $500 in 24 hours on what I claimed would be a “risk free” trade.
That’s ok. In brighter news, I’ve got a new addition to my beer room:
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Its just not the same if he’s not saying STONKS
I wish I could convey the conversation that happened this evening when I opened up this box in front of my wife. Suffice to say it boils down to her saying “What the hell is ‘stonks’?”, repeatedly and in increasing volume.
What possible answer could I give her?
Show her a WSB funny vid and then enjoy the look of horror on her face at how dumb she thinks you are lol.
I know how you feel. I once told my wife that something that was frustrating me was sending my lawnmower into orbit. I have no idea why she didn’t have me committed.
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During the peak of shitcoins mania I was daytrading shitcoins making 1000+/day. My wife never thought it was funny when I was dancing around the house with another 10-20% 10 minute daytrade to the YT vid Bitcoin Billionaire. Unfortunately the free money train didn’t last long and my wife no longer gets to enjoy that. Now I just cry myself to sleep, saying “ITS NOT FAIR” over and over in my sleep while my puts get destroyed for 5 months.
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