Fed Chair Powell Says Economic Pain Coming

Egg prices are down precipitously.


Equity markets still have a lot of room for run having only recently surpassed levels from 2years ago. Earnings have consistently beaten expectations in that period and I expect that to continue as AI adds to companies bottom line through productivity gains. Only a fool is not continually invested.

I have 4 positions in my self directed 401k - NVDA META VOO and QQQ.
I”m up 83% in one year even as I trim NVDA (hit 900 yesterday).


Tip of the hat to Joe and his free market ways.

 

What do you think “transitory” means? Most of the people (economists) used that term because they could tie the inflation to certain specific causes, and in many cases those causes were not permanent, they were expected to abate after a period of time. That’s all this meant. Guess what, they were actually correct. Particularly in those specific cases like lumber and eggs that had those egregious price spikes. That is not to say some of the numbers didn’t exceed expectations, not everything goes according to plan. I remember coming out of the pandemic there were fears the shortage of tanker drivers would cause gas lines and a price spike (to me that meant $10.00 gas on the table), instead we had only modest gains in prices (which since stabilized) and the shortages never happened at any severe level.

Do you think the Fox News audience was aware of the avian flu or what happened to the supply of eggs? I guarantee you their economists were, but that didn’t stop the network from manipulating their audience without bothering to explain or educate as to the connection.

 

City gonna city means "here comes the data"...

Reports reflect increased purchasing power since 2019. People only point to prices, not wages, which are way up since 2019 and especially up for the bottom income tiers. What disingenous righties like to do is pick a point in 2020 where prices fell and wages went up due to covid, stimulus, demand issues. But if you look at pre-covid to now, your purchasing power is up and those at the bottom are doing better.

REGARDLESS.. people at the bottom arent swimming in liquidity, they are just getting by, if, and there is nothing in the GOPs platform that looks out for them. Minimum wages, union support, universal healthcare get branded as communism by the right. Feel free to educate me on how Trump will improve the plight of the bottom.


https://home.treasury.gov/news/featured-stories/the-purchasing-power-of-american-households

 

Inflation happened all across the globe, thanks mostly to the great reopening. We’ve handled it best

 

The middle class has been under attack since the early 80’s when rich people started wielding their influence to drive tax rates down.

 

Amazing how many people failed to report on the avian flu influence on egg prices. They knew, but they also knew their target audience responded best to red meat, not facts.

Interesting that I have been off Too Hot for awhile but the site still has the same people downvoting any reasonable posts because it doesn't fit the Maga narrative.
While I have missed some of the posters, still have the same group not adding value.

 

ahh yes. Me loves the city data..:. Especially when you post about Bidenonmics creating record 401k millionaires and simultaneously ignorantly post those same corporations that created record Biden millionaires are corrupt and don’t pay taxes and use loopholes to generate profit and completely miss both the irony and hypocrisy. But yeah. City gonna data

 

Wait, what? Spending in 2021 and 2022 caused inflation to happen when? Almost immediately? Why? Why would this happen?

Thanks in advance if you can explain this.



Also, what effect do you think the Trump deficit-fueled tax cuts had on inflation?

 

Not to mention the $2.3T Covid spending package he signed.

 

Good response to the data I posted. You're really good at this.

 

He does have a point. Lower taxes and higher prices = higher profits, which drive up 401k values. You are kind of playing both sides of the fence.

 

Companies in the S&P bought back something like $700B in stock last year. Now total market cap is around $42T but that’s a significant impact on stock prices.

I think I saw Biden is considering a higher tax on buybacks which I tentatively support (will need to research) as they are not particularly stimulative. I’d rather much of that be distributed to shareholders.

Edit to add the mag 7 drove much of the gains of the S&P in 2023. That price action was almost entirely driven by earnings growth unrelated to tax rates, and buybacks.

 

The economy doing well and companies not paying historical levels of taxes are not mutually exclusive. There is a path to a strong economy and companies paying their fair share. In fact, that is most of the 20th century.

 

It’s not my fault that you either didn’t take or slept through Dave Denslow’s economics lectures. Go back to school.

 

I will cut him a break on the first stimulus he signed, would have much rather had him fire the midget moron Fauci along with it though. There was no excuse for signing the second one.

You must be new around here. I’ve stated many times right here that I thought Trump was gutless WRT a balanced budget.

Please at least do your roadwork before you get in the ring with the big boys.

 

That's cute. Very substantive also. Point of fact, I was very awake for Denslow.

Now if you would be able to explain how spending in 2021 (which would have been mandated under a Trump budget, in case you were asleep in basic finance), or in 2022, would cause inflation in 2023.

Did this spending cause interest rates to skyrocket the very next year?

Do enlighten us, because you seem to feel very knowledgeable on this. Tx!



Edit : while you're sharing your profound wisdom, maybe after you (don't) come up with an answer, you can opine on how the largest federal bailout in US history, signed by debtor Trump, may have caused inflation in 2023. Perhaps, oh I don't know, it may have had even MORE of an impact than anything Biden did?

Then do the Trump corporate tax giveaway stimulus. Inflationary?

 

Also, FWIW, Denslow taught finance, not economics. It's almost as strange hearing you seem to brag about a college course (supposedly) taken where you don't even know the actual subject as it is where you clearly don't know the subject matter.

Maybe you should stay out of the ring and leave this one to the big boys?

Go back to school.

 

It was early in the morning a long time ago and I skipped most of the classes cause I was hung over (I still got an A) and watched the video but I seem to recall him leading the macroeconomics lectures….

Otherwise fair points..

 

Edit : you're right. I'm thinking of Dr. Brown.

Still waiting for my quoted MAGAt to prove the point he knows nothing about.


I had the version of Denslow that was from China.