I think I agree with those guys as far as naked shorting going on, and brokers (particularly Robinhood) colluding to stop taking buy orders on meme stocks. But this sounds outlandish, and even if it’s true, I don’t think it’s hard to guess who’s going to be allowed to win and lose here.
Why would that be a concern? Why should they keep raising it rather than just let them stay flat? We keep reading articles about how consumers are tapped out in their credit and delinquencies are rising. Whatever consumer demand is supporting today’s prices should be waning. Maybe they should just see if the current rates are enough to stop inflation given a little time.
If it happens deflation is still a bigger issue than inflation and given the current news it also seems like it could be just as likely to happen over the next couple years as the current high inflation sticking.
Because theyve telegraphed they are bound and determined to throttle the labor market and it’s not been throttled.
Since they won’t stop for altruistic reasons, you’re left with them stopping because they’re being forced to.
That seems not a good reason? Maybe circumstances have changed since they made whatever statements about the labor market. Maybe one of the lessons of 2007 should have been that they raised rates too quickly from near zero and things got away from them?
Maybe Panicky Powell can be convinced to do the right thing for the wrong reason? Going bonkers with rate hikes to crush wages and the economy was dumb but maybe he can be convinced to stop to by fellow bankers fearing a financial crisis.
I’m going to guess that the 25 percent of his net wroth he has in GME was closer to 75 percent of his net worth a year or so ago.
Because long term inflation is far more damaging to the middle class (due to the inelasticity of middle class wages) than almost anything else.
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I’ve always understood that deflation is far more damaging to the middle class than inflation. Is there any data behind this concept of middle class wage inelasticity?
Do you really need me to find one of the numerous studies done over the past 50 years that have shown that middle class incomes have not kept up with inflation and have, in fact, lost purchasing power? Your post also assumes that significant deflation is inevitable with a financial collapse.
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I don’t have any expectations about what you will or should do. But you did made a claim that inflation was more damaging than ANYTHING ELSE. That’s a pretty strong claim and should have some support other than “oh yeah there’s data that shows wages haven’t kept up with inflation over the years”.
Like, how do you know that’s worse than a recession or lower overall growth? Have wages lagged more in high inflation environments than in low inflation environments?
Considering much of the middle class owns homes which will appreciate with inflation financed with fixed rate debt which will devalue in the high interest rates it’s not all bad for them. For those that have them, the fixed rate student loans will also become less of a burden.
In a deflationary environment the opposite happens. Existing debt becomes a bigger and bigger burden just as employment opportunities dry up, which kills consumption causing more unemployment in a nasty feedback loop.
I don’t think significant deflation is INEVITABLE but it might be just as likely as the high inflation of the last two years continuing with interest rates at current levels and a bigger potential risk.
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And also, wage inflation, especially at the lower end, is a significant part of this particular round of inflation. The reason we know this is that a large part of Panicky Powell’s commentary on “the data” the last few months has been that too many damn people have jobs and their wages are increasing too damn fast.
Could it to be that a disproportionately large generation, let’s call them “the Boomers,” have gotten old and left the workforce in recent years and also increased demand for healthcare workers and also we have stopped letting in immigrants that could fill the gap left by “the Boomers,” all of which have combined to give workers leverage for the first time in my entire life?
That seems like a dubious claim.
I wonder if consumer spending starting to slow. Within about 5 minutes got an email from American Airlines about “great prices” and some credit card increasing their intro promo bonus
Is it really? There’s like 65% home ownership rate in USA, don’t you think most of those are middle class people?
All kidding aside if inflation actually does end that’s what it will look like. Companies have been fishing to see how high they can push prices before they stop making as much money. Maybe now they see how much volume they can pick up by lowering prices a bit.
Although I don’t follow airlines much but these prices don’t look great 
so maybe they just trying to reset my psychological barometer for pricing
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This is a forum largely populated by millenials. If you want to talk to us about homeownership use our generations stats not the whole picture. We don’t care that most poor boomers and gen x’ers own homes. We can’t afford homes on middle class money in 2023.
The only reason I’m a homeowner is that I’m a successful B2B sales/ops/management/ownership hybrid who makes top 1% money for my age bracket. If it weren’t for my being actually pretty successful for my age there’s absolutely no chance I could have afforded to buy a home anywhere remotely close to where anyone in my tax bracket would ever want to live. As it was I ended up with an I’ll admit pretty nice townhouse lol.
Having grown up actually poor don’t worry I know I’m not middle class. If you think I am middle class you’re wildly out of touch lol.
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airlines are still killing it, planes are full. There are some weird dynamics because there are basically the same number of people flying now as before covid, but there are fewer pilots, so individual flights are more crowded, prices are higher, and the general breakdown is fewer elite frequent flyer roadwarriors and more occasional flyers (mostly leisure passengers).
a lot of high-level elites I know don’t understand that the market is different and are mad that their status isn’t getting them as many perks as it used to. Airlines love it because elites are fucking whiney as hell, crowding them out with a bunch of yokels who have zero expectations/demands and are still pretty price insensitive is a huge boon for shareholders.
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We never should have bailed out the depositors.
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