Inflation is Through the Roof - Whats Biden Admin's First Priority? Stockholders, of course!

[K1052]

Supply chain issues

Yeah there is a chicken shortage because people started buying way more chicken products (wings, sandwiches, etc) plus now restaurants are restocking. Part of the economy restarting is going to be unusually surgey demand hitting a lot of products which will naturally increase in price. It will be temporary though.

 

[ch33zw1z]

Yeah there is a chicken shortage because people started buying way more chicken products (wings, sandwiches, etc) plus now restaurants are restocking. Part of the economy restarting is going to be unusually surgey demand hitting a lot of products which will naturally increase in price. It will be temporary though.

The author of the yahoo link included quoted statements from a couple of those companies that said it's just normal business and didn't blame inflation specifically.

I don't recall the same outrage in 2016-2018 as inflation rose under the Trump admin while the tax cuts went into affect.

Seems like just the daily cup of FUD with whipped rage topping.

 

[K1052]

wrong thread

 

[fskimospy]

Do you have anything to say or just typical name calling and insult?

I did say something, that increased inflation would be good for the average american. How did you miss this?

 

[Puffnstuff]

Well not to be outdone I'm gonna tell the OP that there's a chicken shortage because Willy E Coyote finally got it right.....

 

[ondma]

I did say something, that increased inflation would be good for the average american. How did you miss this?

Not sure if you were being sarcastic. There is some truth to this though, as long as wages go up too economic growth is good.
However, it is deadly for those on a fixed income.

Also, the real damage to inflation is understated by the CPI. Medical and higher education costs (with the associated student debt) are killing us. Biden has done a lot well, but I do wish he would follow up on cancelling at least a portion of student debt, or at least give some kind of tax credit toward payments.

 

[fskimospy]

Not sure if you were being sarcastic. There is some truth to this though, as long as wages go up too economic growth is good.
However, it is deadly for those on a fixed income.

Also, the real damage to inflation is understated by the CPI. Medical and higher education costs (with the associated student debt) are killing us. Biden has done a lot well, but I do wish he would follow up on cancelling at least a portion of student debt, or at least give some kind of tax credit toward payments.

No I’m completely serious. We should target inflation above 2% for the next couple of years to make up for the last decade+ of damagingly low inflation.

Inflation is a basket though, yes. Some areas have gone up much more, some areas experience deflation.

Im down for canceling student debt but only in the context of larger reform that abolishes student loans.

 

[Bitek]

i just saw a conservative friend on facebook post "we don't need more stimulus. go find a job"

someone doesn't know how government economics work compared to household finances

I thought Chyna was stealing all of our jobs? Did that stop?

All the jobs are back and pay his wages? All the bust towns are healed? No more "American Carnage"?

 

[s0me0nesmind1]

Don't worry guiz - just a little inflation! Never hurt anyone... Just giving a massive punch to the middle-class groin is all.

UK inflation more than doubles to 1.5% in April

British consumer price inflation more than doubled in April at the start of what the Bank of England hopes will be a temporary surge as the economy recovers from last year's COVID slump.

www.cnbc.com

Add on top of that stocks in the shitter:

Wall Street falls for third day on inflation jitters, crypto plunge

Wall Street's main indexes fell for the third straight session on Wednesday, as a steep fall in cryptocurrencies and fears over inflation pushed investors away from riskier assets.

www.reuters.com

 

[Amol S.]

Don't worry guiz - just a little inflation! Never hurt anyone... Just giving a massive punch to the middle-class groin is all.

UK inflation more than doubles to 1.5% in April

British consumer price inflation more than doubled in April at the start of what the Bank of England hopes will be a temporary surge as the economy recovers from last year's COVID slump.

www.cnbc.com

Add on top of that stocks in the shitter:

Wall Street falls for third day on inflation jitters, crypto plunge

Wall Street's main indexes fell for the third straight session on Wednesday, as a steep fall in cryptocurrencies and fears over inflation pushed investors away from riskier assets.

www.reuters.com

How many times do I have to say... there is no inflation. The reason why Dow and NASDAQ are down, is because streaming service providers and entertainment industry is loosing subscribers and revenue as people go back to work. Not everyone here stays logged in 24/7/365(366) spreading false interpretations of the news.

As for the inflation in the UK, that should not affect us. A UK inflation actually benefited the U.S. Dollar every time.

Inflation

Oh wait

 

[fskimospy]

How many times do I have to say... there is no inflation. The reason why Dow and NASDAQ are down, is because streaming service providers and entertainment industry is loosing subscribers and revenue as people go back to work. Not everyone here stays logged in 24/7/365(366) spreading false interpretations of the news.

As for the inflation in the UK, that should not affect us. A UK inflation actually benefited the U.S. Dollar every time.

Inflation

Oh wait

What I love is when an article says ‘the stock market did X because Y’ as if people actually know the answer. They are just quoting what random traders tell them. Of course nobody ever says what stocks will do the next day, they only happen to know the psychology of the market for the trading day that just ended.

It also doesn’t seem to bother them that without explanation in the same article they say traders fear inflation but treasury yields fell. That sure seems like a contradiction and where people are actually putting their money where their mouth is they don’t!

 

[mikeymikec]

Don't worry guiz - just a little inflation! Never hurt anyone... Just giving a massive punch to the middle-class groin is all.

UK inflation more than doubles to 1.5% in April

British consumer price inflation more than doubled in April at the start of what the Bank of England hopes will be a temporary surge as the economy recovers from last year's COVID slump.

www.cnbc.com

You forgot "thanks Biden!", Mr "I pretend to care about the middle class except of course I vote conservative".

 

[Fenixgoon]

I'd be more impressed at how 1 poster can self-own so many times in a year if it weren't all so sad.

 

[dank69]

Don't worry guiz - just a little inflation! Never hurt anyone... Just giving a massive punch to the middle-class groin is all.

UK inflation more than doubles to 1.5% in April

British consumer price inflation more than doubled in April at the start of what the Bank of England hopes will be a temporary surge as the economy recovers from last year's COVID slump.

www.cnbc.com

Add on top of that stocks in the shitter:

Wall Street falls for third day on inflation jitters, crypto plunge

Wall Street's main indexes fell for the third straight session on Wednesday, as a steep fall in cryptocurrencies and fears over inflation pushed investors away from riskier assets.

www.reuters.com

I didn't think there was anyone left that believed headlines about why the stock market is doing what it happens to be doing today, but here we are.

 

[dank69]

What I love is when an article says ‘the stock market did X because Y’ as if people actually know the answer. They are just quoting what random traders tell them. Of course nobody ever says what stocks will do the next day, they only happen to know the psychology of the market for the trading day that just ended.

It also doesn’t seem to bother them that without explanation in the same article they say traders fear inflation but treasury yields fell. That sure seems like a contradiction and where people are actually putting their money where their mouth is they don’t!

Morning headline: Stocks falter as inflation fears rise!
Later that same day after stocks rebound, exact same article has title changed to: Stocks rebound as investors shake off fears of inflation!

 

[fskimospy]

Morning headline: Stocks falter as inflation fears rise!
Later that same day after stocks rebound, exact same article has title changed to: Stocks rebound as investors shake off fears of inflation!

What an emotional roller coaster for them! Incredible that that news organization is able to so accurately measure mass psychology in real time!

 

[HomerJS]

I'm surprised this thread hasn't been locked when the title is an obvious lie.

Oh, that's right forgot who is the OP

 

[ondma]

What I love is when an article says ‘the stock market did X because Y’ as if people actually know the answer. They are just quoting what random traders tell them. Of course nobody ever says what stocks will do the next day, they only happen to know the psychology of the market for the trading day that just ended.

It also doesn’t seem to bother them that without explanation in the same article they say traders fear inflation but treasury yields fell. That sure seems like a contradiction and where people are actually putting their money where their mouth is they don’t!

I dont think that is a contradiction at all. Low treasury yields tend to promote inflation.

 

[fskimospy]

I dont think that is a contradiction at all. Low treasury yields tend to promote inflation.

It’s a direct contradiction.

The US Treasury finances our debt by selling bonds at a public auction. The yield is the price that investors demand to purchase those bonds. If the yield investors demand goes higher that indicates those investors believe inflation will be higher going forward, therefore the bonds need to pay out more in order to cover that erosion of value. In the case of this article however treasury yields declined, which signals the opposite. More importantly unlike equities bonds are pretty much a direct bet on inflation, so this is a more important signal about inflation expectations than the broader market.

If the article wants to claim a decline in equities is due to inflation fears they should at least address why yields went down. After all, the people with actual skin in the game did not seem to share this fear.

 

[blackangst1]

Inflation is not "through the roof".

 

[ondma]

It’s a direct contradiction.

The US Treasury finances our debt by selling bonds at a public auction. The yield is the price that investors demand to purchase those bonds. If the yield investors demand goes higher that indicates those investors believe inflation will be higher going forward, therefore the bonds need to pay out more in order to cover that erosion of value. In the case of this article however treasury yields declined, which signals the opposite. More importantly unlike equities bonds are pretty much a direct bet on inflation, so this is a more important signal about inflation expectations than the broader market.

If the article wants to claim a decline in equities is due to inflation fears they should at least address why yields went down. After all, the people with actual skin in the game did not seem to share this fear.

Low treasury bond yields are a reflection of the Federal Reserve keeping the federal funds rate low. This tends to promote economic growth, and hence possible inflation. The fact that treasury yields are low could lead to a fear that the Fed does not have the resolve to raise the federal funds rate sufficiently to combat inflation. In any case, one has to look at at the long term trend, not just temporary movement.

 

[ivwshane]

Low treasury bond yields are a reflection of the Federal Reserve keeping the federal funds rate low. This tends to promote economic growth, and hence possible inflation. The fact that treasury yields are low could lead to a fear that the Fed does not have the resolve to raise the federal funds rate sufficiently to combat inflation. In any case, one has to look at at the long term trend, not just temporary movement.

Yeah but if I only look at the long term trend then how am I going to get my daily rage on?

 

[fskimospy]

Low treasury bond yields are a reflection of the Federal Reserve keeping the federal funds rate low. This tends to promote economic growth, and hence possible inflation. The fact that treasury yields are low could lead to a fear that the Fed does not have the resolve to raise the federal funds rate sufficiently to combat inflation. In any case, one has to look at at the long term trend, not just temporary movement.

But the article in question was explicitly talking about temporary movement.

Also, if the fear is the fed wouldn’t raise rates to combat inflation then why would people even buy these bonds? That’s a guaranteed money loser. That’s the whole point of looking at yields, this is people putting their money where their mouth is about inflation. If you buy at too low a yield you lose money.

 

[ondma]

But the article in question was explicitly talking about temporary movement.

Also, if the fear is the fed wouldn’t raise rates to combat inflation then why would people even buy these bonds? That’s a guaranteed money loser. That’s the whole point of looking at yields, this is people putting their money where their mouth is about inflation. If you buy at too low a yield you lose money.

Because if the fed doesnt raise rates, then the yield of the bonds you buy now is competitive.

If you think the fed will raise rates, then you *do not* want to buy now, because the price of the bond will go down if rates are raised.

 

[FelixDeCat]

I'd be more impressed at how 1 poster can self-own so many times in a year if it weren't all so sad.

Those who live in glass houses should not throw stones.