Sure, but min wage doesn’t go down when deflation rolls in. It settles itself with layoffs amongst other pretty shiity stuff.
deflation doesn’t lead to lower prices because the government is always printing more money.
This doesn’t make any sense. Deflation is defined as falling prices.
10 year settling in at 3.95%, I think that’s about the highest it can go without triggering real pain.
Do you think there’s a psychological impact of crossing 4%? The Great And Glorious Market works in mysterious ways.
I just checked new car loan rates out of curiosity. Boy oh boy.
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I just opened a pre approval letter from my credit union for 96 months at 3.75%. Which honestly seems really good minus the whole 8 year thing obviously.
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We’ve certainly put enough attention on creating safeguards in areas like housing to prevent another disaster like limiting variable rate use and outright fraudulent loans but not a lot of attention, from what i’ve seen, on the risks of allowing small businesses to borrow floating rates to fund a multi billion dollar empire that employs thousands of workers, may or may not have been profitable in a time where revenue growth was at its highest and are now facing a serious potential cash crunch.
Who knows who planned accordingly for the possibility of 3x rates since then and how it will affect their business, their employees and how it shocks the rest of the economy.
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Many/most private equity owned businesses, even those with billions of dollars of floating rate debt, are also unhedged and generally not shy about cost reduction measures (i.e. layoffs)
I thought there was a lot of backsliding on this stuff a few years after the initial regulatory push following the 2008 financial crisis. But I’m just going on memory and it make have been anecdotal.
Leveraged loans are going to be a big problem. They’ve exploded in recent years.
UK pensions essentially told they have until Friday to fire sale things by the BOE and we get CPI data Thursday. Should be another fun week… Nice little 3%+ intraday swing today, very functionable and investible US equity market.
yeah, i guess i meant recession
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Cpi today: Seems like the most plausible is the numbers come in below exp amd the market rips green but who the hell knows.
CPI has come in under expectation, what, once in the past 12 months? This seems like wishcasting to me.
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CPI is tomorrow. PPI is today (much less significant)
Yeah, my bad.
And… PPI comes in hotter than expected. Not promising for tomorrow.