patrick.net

Bitcoin says

clambo says

The more they spend, the more your stocks will rise.

Plus, Millennials buy the dip! I would argue that older generations are much more scared of red days because they have actually seen devastating, prolonged downturns in he stock market (e.g. dot com bubble & 2008).....Millies' however wait for blood on the street and buy, buy, buy. And the Covid V shape recovery just emphasized how profitable the buy-the-dip can be.

I'd be careful, I don't think the market has recovered as much as you may think, it's a few tech trannies with a lot of weight who contributed to "highs", the majority of stocks, esp. small to mid cap has been trending lower for a while. Tech trannies will correct sharply once rates go up. Generally I'd agree that mild inflation is good for the market but only in strong economies, the xiden admin may be wrecking her fast

https://www.theepochtimes.com/mkt_breakingnews/inflation-way-beyond-transitory-becoming-growing-issue-for-markets-economist-says_4042748.html?utm_source=patrick.net&utm_medium=patrick.net&utm_campaign=patrick.net

Inflation ‘Way Beyond’ Transitory Becoming Growing Issue for Markets, Economist Says
BY TOM OZIMEK October 11, 2021

Inflation that is now “way beyond” the transitory narrative is fast becoming a growing challenge as investors navigate the turbulent waters of sharp wage gains, a tightening labor market, and persistent price pressures, according to Queen’s College President and economist...

mell says

Tech trannies will correct sharply once rates go up

But how much can rates go up? Can the US even afford higher rates? As soon as rates go up, investments/capex is reducing, house prices will decrease, stocks go down etc. I doubt it will happen.....for the next 5-10years its more likely the US will become like Europe. (zero to negative rates on bonds, extra fees on cash in checking/saving accounts, etc.)

I am all for higher rates btw., my RE/investment property is locked in for 30 year loans at ridiculous low rates and I would be a buyer for more RE investment property if rates go higher and prices adjust down.

Blue says

All are racing to the bottom.

Almost all democrats are subscribing AOC junk spending plan. Its a total waste of money that no way it get paid back. Venezuela inflation style will be on. Wait where did AOC ancestors come from!

Blue says

Venezuela inflation style will be on

Nope. We heard it for ten years now. The poor/avg joe's in the US dont even have enough $$$ to cover their monthly bills. If there would be too much money circulating I would be afraid of inflation, but the reality is a lot of the inflation was due to a one-off situation.... covid and subsequent supply chain issues.

Went to the gun store the other day.....not an empty shelf. Bought a bitchin shotgun IWI Tavor Ts12. Even got a discount on the gun (for no reason, i think the owner just liked talking to me). Also, no more limits on ammo....you can buy 10,000 rounds of 9mm if you want. Prices came down, supply is up. 500 rounds for 22 for $40....i take that all day long. Why would there be inflation? exactly...there is none (for guns and ammo). It was short lived because you had high demand (Biden election) and shortages (manufactures closing temporarily due to covid).

Lumber prices came down as well but food prices are up. inflation runs at 5.4% (a tiny beat vs estimate of 5.3%).

There are no signs of inflation getting out of hand....

https://www.dailymail.co.uk/news/article-10117649/California-town-sees-gas-hit-alarming-7-59-gallon-4-higher-average.html

True panic at the pump! Gas hits $7.59 A GALLON in California town along the Big Sur coast - more than $4 higher than the national average
Gorda residents saw gas hit $7.59 per gallon as the cost of gasoline surges across the US due to increasing oil prices and the continuing supply chain crisis
Premium gasoline there reached an astounding $8.50 per gallon
These shocking prices come as gas costs continue to climb at an alarming rate across the nation, with California seeing the brunt of the spike
As of Thursday, the national average gas price was $3.36 per gallon - a 17-cent increase over September and $1.20 higher than last year, according to AAA
The average cost for gas is the highest it has been across the country in seven years, and the highest it has been in California in nearly a decade

Bitcoin says

If there would be too much money circulating I would be afraid of inflation, but the reality is a lot of the inflation was due to a one-off situation.... covid and subsequent supply chain issues.

You may be correct, but the price of fuel has gone up and appears like the fuel price will stay high or even increase. That cost will be passed on to product prices. Around here, prices for generic food items like Walmart's Great Value brand have doubled.

Patrick says

True panic at the pump! Gas hits $7.59 A GALLON in California town

This would be a Bargain Price in many parts of Europe. So we know there's demand at much higher prices.

Whose fault is it that we made ourselves dependent on cheap gasoline for everyday living?

Higher gas prices, LET'S GO BRANDON!

clambo says

Each generation is lazier and more self absorbed; people are now paying others to deliver a coffee drink in addition to food and other stuff.
I guess I’m a dinosaur;

How many millenials and Gen Zers are you close to? Just asking.

B.A.C.A.H. says

Whose fault is it that we made ourselves dependent on cheap gasoline for everyday living?

With our comparatively low population density the alternatives would be even worse. Public transportation can't stand on its own w/o massive govt subsidiess even in Europe.

Patrick says

True panic at the pump! Gas hits $7.59 A GALLON in California town along the Big Sur coast

Those little gas stations along the windy remote parts of Hwy 1 have ALWAYS been several bucks above normal prices. I discovered this as a road tripping on a shoestring young man.

Right now the CA government is talking about banning oil drilling in the state. I think it was the LA county board of supervisors who at the beginning of this week were confidently talking about banning all oil drilling in the county and even canceling existing leases. By mid week they had walked it back to "within 3000 feet of schools churches and blah blah".

FuckCCP89 says

With our comparatively low population density

Whose choice to live like that?

BTW, for what we get, for what we pay, $20 per gallon would still be the Bargain Of The Millenia.

At $20/gallon in a modest 20 mpg vehicle, it will cost $1 to haul a load of groceries per mile, chauffeur a load of kids to/from school, or elderly to their appointments. Bargain Of The Millenia.

Automan Empire says

Right now the CA government is talking about banning oil drilling in the state. I think it was the LA county board of supervisors who at the beginning of this week were confidently talking about banning all oil drilling in the county and even canceling existing leases. By mid week they had walked it back to "within 3000 feet of schools churches and blah blah".

EVERYBODY WILL BUY THEMSELVES A TAYCAN TURBO AND LIVE HAPPILY EVER AFTER!

HeadSet says

prices for generic food items like Walmart's Great Value brand have doubled.

So then brand items have double too or are Walmarts Great Value brands more expensive than the prime goods now?

Try the following: look at flight prices domestically and internationally.

I flew twice to the east coast the last few month (300-400 bucks round trip for main section and 1k for business). My flight to Europe with Lufthansa was 800k.
Flights are dirt cheap compared to where they were before gas went up in price.

I am not saying there isnt inflation....I am saying it normalizes in a few sectors that saw severe price spikes due to one-timers (covid/supply chain issues).....ammo/guns.....flights.....rental cars......lumber.....

FuckCCP89 says

EVERYBODY WILL BUY THEMSELVES A TAYCAN TURBO AND LIVE HAPPILY EVER AFTER!

exactly my idea....i want to buy a bitchin EV next year.

B.A.C.A.H. says

FuckCCP89 says

With our comparatively low population density

Whose choice to live like that?

Ours, of course. And any Brandon who wants to force us to live on top of each other in the name of some "climate change" should go and fuck himself.

Bitcoin says

HeadSet says

prices for generic food items like Walmart's Great Value brand have doubled.

So then brand items have double too or are Walmarts Great Value brands more expensive than the prime goods now?

For example, before the recent inflation:
Great Value bread - 60 cents per loaf, brand name about $2.40
Great Value gallon spring water - also 60 cents a jug, brand name $1.40
Great Value bag of chips - 89 cents, brand name about $2.49

The brand names had price increases as well, so even with Great Value doubling, the brand names are still more expensive.

Other Great Value products, such a eggs, cheese, and lunchmeats, had substantial increases even though not doubling in price. Still cheaper than name brands, but not the bargains they used to be,

https://babylonbee.com/news/white-house-says-you-would-be-able-to-afford-food-if-you-had-kept-the-16-cents-you-saved-on-july-4th

https://www.zerohedge.com/markets/australias-2y-bond-just-blew-after-central-bank-unexpectedly-refused-buy-it

https://www.zerohedge.com/markets/loonie-soars-after-bank-canada-ends-qe-early-accelerates-potential-timing-rate-hikes

https://notthebee.com/article/let-this-retail-worker-give-you-a-visual-of-what-bidens-inflation-looks-like

Patrick says

https://notthebee.com/article/let-this-retail-worker-give-you-a-visual-of-what-bidens-inflation-looks-like

It sounds like the commie hole that I came from prices change few times a day.

Patrick says

https://notthebee.com/article/let-this-retail-worker-give-you-a-visual-of-what-bidens-inflation-looks-like

WHAT PART OF TRANSITIONARY YOU DON'T UNDERSTAND?!!!!

FuckCCP89 says

WHAT PART OF TRANSITIONARY YOU DON'T UNDERSTAND?!!!!

Its like flattening the covid curve in 15 days!

For asset holders, inflation is a gift.....

House prices up
Stocks up (especially my tech stocks)
And CRYPTO! Bitcoin at 68k!

Do I really care about $5 per gallon if I make a million in profit on the other side (investments)?

The crypto market has grown to a 3 Trillion dollar market cap......and retail investors are not even flooding in yet.....

True, my stocks seem to have nicely compensated for inflation, while my cash lost.

Patrick says

True, my stocks seem to have nicely compensated for inflation, while my cash lost.

Paper stock gains verses real cash purchase power losses?

Bitcoin says

House prices up

Yep, so now you get higher property taxes (except those under Prop 13) and higher insurance cost for the same house. Also, if you "cash out" in a sale, you will pay higher real estate fees on the sold house and your next house, in addition to the higher cost of the next house.

Bitcoin says

For asset holders, inflation is a gift.....

House prices up
Stocks up (especially my tech stocks)
And CRYPTO! Bitcoin at 68k!

not if it leads to widespread poverty and revolution...

FortWayneAsNancyPelosiHaircut says

Bitcoin says

For asset holders, inflation is a gift.....

House prices up
Stocks up (especially my tech stocks)
And CRYPTO! Bitcoin at 68k!

not if it leads to widespread poverty and revolution...

you can say that about everything. What you would need to explain is HOW mild inflation is supposed to lead to widespread poverty.

Otherwise, it doesnt mean much. If I say, its a good thing that we are getting some rain in sunny California.
You can reply and say, Not if it leads to widespread poverty and revolution.

Bitcoin says

FortWayneAsNancyPelosiHaircut says

Bitcoin says

For asset holders, inflation is a gift.....

House prices up
Stocks up (especially my tech stocks)
And CRYPTO! Bitcoin at 68k!

not if it leads to widespread poverty and revolution...

you can say that about everything. What you would need to explain is HOW mild inflation is supposed to lead to widespread poverty.

Otherwise, it doesnt mean much. If I say, its a good thing that we are getting some rain in sunny California.
You can reply and say, Not if it leads to widespread poverty and revolution.

The majority of people don't have the zero fucks given cash they can invest into a house or crypto or stocks, they mostly depend on paycheck increases. A sizable portion of lower and lower middle class becomes impoverished from inflation. And those in the upper middle and upper class who bet on the wrong horses. If you can't safely save money at a good enough rate to outpace inflation you're at the whim of speculation/investing or of your employer and savings account

HeadSet says

Bitcoin says

House prices up

Yep, so now you get higher property taxes (except those under Prop 13) and higher insurance cost for the same house. Also, if you "cash out" in a sale, you will pay higher real estate fees on the sold house and your next house, in addition to the higher cost of the next house.

yes, i am in CA and under prop13. so property taxes are capped.
I also have no interest in selling RE. Only holding and renting out.

Inflation is good for me as a homeowner. I dont like to pay off the house because a lender is lending me money at 2.75% for 30y. Instead of paying back the loan at once, i invest my cash at much higher returns. In the meantime, inflation is eating away the value of my debt. My debt is fixed and becomes less "valuable" while income rises.

We are in a prime situation......terrible for poor people. But best conditions for people with assets and cash to invest. This is the time to make a killing and set yourself up for early retirement and generational wealth.

He brought, doempit.

https://www.youtube.com/watch?v=TRXdxiot5JM&t=30s

mell says

If you can't safely save money at a good enough rate to outpace inflation you're at the whim of speculation/investing or of your employer and savings account

Totally, the poor are fucked. Middle class has to invest in stocks, crypto and RE. no other way to stay ahead.

HeadSet says

Patrick says

True, my stocks seem to have nicely compensated for inflation, while my cash lost.

Paper stock gains verses real cash purchase power losses?

Yes.