March 1, 20214 yr On 2/26/2021 at 4:26 PM, Cheeseweasel said: I'll be in the corner drinking cheap beer. Should be able to afford the imports after today's rally.
March 1, 20214 yr 22 minutes ago, Jester said: Should be able to afford the imports after today's rally.
March 1, 20214 yr When the deficit hawk head of the Fed says stimulus needed, Wall Street listens. Good news for the market (and the markets crave certainty). Until there is increased uncertainty again, which there will be, the Fed is not letting the economy crumble. Dollar strengthens. Markets Rally. Rinse and Repeat, until that doesn't work anymore. Be careful out there. A lot of elements in motion with some illogical players thrown in. Know you exit routes, always. Edited March 1, 20214 yr by washparkhorn
March 1, 20214 yr 22 minutes ago, washparkhorn said: until that doesn't work anymore. Stocks only go up. Moose out front...
March 2, 20214 yr 5 hours ago, Cheeseweasel said: Stocks only go up. Moose out front... Stonks...only go up. It’s a small difference, but important.
March 2, 20214 yr Why not 3.8 trillion and let's get those GDP numbers really humming? A GDP the likes of which the world has never seen.
March 2, 20214 yr 1 hour ago, XYZ said: Why don't they print a fucking quadrillion, then we’ll really be rich. are you sure a quadrillion is enough?
March 2, 20214 yr So this is gonna cause a whole buncha inflation, correct? All that money we got gave is sitting in our checking accounts is fixin' tah get spent once things open up. Too much money chasing too few goods. Bam. Inflation. So how do we as individuals protect ourselves? Is it as simple as staying invested in stocks?
March 2, 20214 yr 2 hours ago, Parliament said: So this is gonna cause a whole buncha inflation, correct? All that money we got gave is sitting in our checking accounts is fixin' tah get spent once things open up. Too much money chasing too few goods. Bam. Inflation. So how do we as individuals protect ourselves? Is it as simple as staying invested in stocks? Where the fuck do you live where you're so locked down you can't buy items right now that could become scarce and contribute to CPI? Russia? Ohio? I don't think the price of cruise tickets and sporting events factors into inflation calcs
March 2, 20214 yr 3 hours ago, Parliament said: So this is gonna cause a whole buncha inflation, correct? All that money we got gave is sitting in our checking accounts is fixin' tah get spent once things open up. Too much money chasing too few goods. Bam. Inflation. With respect, the Fed knows how to bleed off inflation, e.g. put upward pressure on bond yields by the Fed cutting back on US Treas. securities. The Fed has limited tools to combat a stalling economy. <----- We are here. Demand-pull inflation (too much money chasing too few goods) is not significant at this time. Quite the opposite generally - we have excess capacity and little demand. Cost-push inflation is tempered by the public backing (funding) the maintenance of markets during Covid (stabilize markets and relationships, and wait for the consumer to return, which was prudent policy but incomplete). Easy two-part and new analysis from the St. Louis Fed on your concerns: https://www.stlouisfed.org/on-the-economy/2021/march/servicing-national-debt and https://www.stlouisfed.org/on-the-economy/2021/march/does-rising-national-debt-portend-rising-inflation Quote "Andolfatto noted that exactly how large a deficit the government can run depends on the debt-to-GDP ratio, which the government doesn’t determine. The ratio is determined by market demand for debt, which, in turn, depends on the structure of interest rates either set or influenced by the Fed. “There is presumably a limit to how much the market is willing or able to absorb in the way of Treasury securities, for a given price level (or inflation rate) and a given structure of interest rates,” Andolfatto wrote. “However, no one really knows how high the debt-to-GDP ratio can get. We can only know once we get there.” The purchasing power of nominal wealth is inversely related to the price level, Andolfatto pointed out. While a higher price level means the average person’s money buys fewer goods and services, inflation is the rate of change in the price level over time. It’s also helpful to distinguish between a change in price level that is temporary and a change in inflation, which is persistent. A one-time increase in the supply of debt that doesn’t correspond to increased demand can likely mean a change in the price level or the interest rate, or both, the author explained. A continuing debt issuance not met by a corresponding growth in the demand for debt is likely to show up as a higher rate of inflation. How the interest rate on U.S. Treasury securities is affected depends mainly on Fed policy, Andolfatto wrote. “As long as inflation remains below a tolerable level, there is little reason to be concerned about a growing national debt,” the author wrote. “Like a firm that finances itself with convertible debt, the prospect of involuntary default is never a concern.” In reality, a firm that exercises its conversion option is likely to experience share dilution, while a government that monetizes debt is likely to experience a jump in the price level, he added. The Fed has had an official 2% inflation target since 2012 (see the figure below), but Fed officials have said they would be willing to let inflation exceed this target if it would help an improving labor market. But what might happen if inflation rises and remains above a tolerable level? The Fed might have to cut back on purchasing U.S. Treasury securities, which could put upward pressure on bond yields. Inflation is a political scare tactic presently. Remember your Fed Chair is a Deficit Hawk/Republican and he is not worried about inflation (the Fed has the tools to combat inflation). The Fed is working the other side of the equation because that is where the systemic risk lies. Inflate (2% ideally) or die. Edited March 2, 20214 yr by washparkhorn
March 4, 20214 yr On 3/2/2021 at 2:03 PM, washparkhorn said: With respect, the Fed knows how to bleed off inflation. Inflation is a political scare tactic presently. Remember your Fed Chair is a Deficit Hawk/Republican and he is not worried about inflation (the Fed has the tools to combat inflation). The Fed is working the other side of the equation because that is where the systemic risk lies. Inflate (2% ideally) or die. So what foreign land are you writing us from??
March 5, 20214 yr 1 hour ago, LTtxfan said: So what foreign land are you writing us from?? South ROC (Republic of California)
March 5, 20214 yr 9 minutes ago, XYZ said: What did he do? Yep. Please explain. Because i'm like WTF everything.
March 5, 20214 yr 6 hours ago, XYZ said: What did he do? He said there might be some inflation Rates jumped and the market was down 700 pts, Edited March 5, 20214 yr by Incredulity
March 5, 20214 yr 1 hour ago, Incredulity said: He said there might be some inflation Rates jumped and the market was down 700 pts, Just shows how stupid and reactionary people are.
March 5, 20214 yr 3 minutes ago, Coelenterate Fuccboi said: Just shows how stupid and reactionary people are.
March 5, 20214 yr 3 minutes ago, 52-80 said: Is this justifiable reason for shooting Jerome Powell? Well, people have been shot for less.
March 5, 20214 yr The fuck is going on today? Competing algorithms duking it out? In the 3 hours since opening bell it's been up big, down, even, down again even more, up big again.
March 5, 20214 yr 6 minutes ago, Storm the Field said: The fuck is going on today? Competing algorithms duking it out? In the 3 hours since opening bell it's been up big, down, even, down again even more, up big again.
March 5, 20214 yr Dear baby Jesus, give us one more bill rally. I promise I won’t waste it. this time it’s different
March 5, 20214 yr Everyting I read late last year is happening: "Look for a choppy first half of 2021 and then markets should be in good shape in second half of the year when vaccinations and some sense of "normalcy" returns. A healthy pullback IMO. Could go more in the next few weeks...but I am holding steady.
March 5, 20214 yr 18 minutes ago, Tailgate said: Everyting I read late last year is happening: "Look for a choppy first half of 2021 and then markets should be in good shape in second half of the year when vaccinations and some sense of "normalcy" returns. A healthy pullback IMO. Could go more in the next few weeks...but I am holding steady. 100%. I'm not falling for the "Get out now and get back in later" trap. Because I'll fuck it up on both ends.
March 5, 20214 yr 1 minute ago, Cheeseweasel said: 100%. I'm not falling for the "Get out now and get back in later" trap. Because I'll fuck it up on both ends. That's where I'm at. I left everything in my portfolio in March last year, and ended up 45% for the year anyway.
March 5, 20214 yr 8 hours ago, Incredulity said: He said there might be some inflation Rates jumped and the market was down 700 pts, This is hilarious.
March 5, 20214 yr Bond mini-tantrum: https://www.reuters.com/article/us-usa-fed-tantrums-graphic/tantrums-come-and-go-but-the-fed-insists-it-will-stay-the-course-idUSKBN2AX13G Watch yer asses out there. Big girls and boys with big toys at play.
March 5, 20214 yr 4 minutes ago, washparkhorn said: Bond mini-tantrum: https://www.reuters.com/article/us-usa-fed-tantrums-graphic/tantrums-come-and-go-but-the-fed-insists-it-will-stay-the-course-idUSKBN2AX13G Watch yer asses out there. Big girls and boys with big toys at play.
March 5, 20214 yr 1 hour ago, Cheeseweasel said: 100%. I'm not falling for the "Get out now and get back in later" trap. Because I'll fuck it up on both ends. Yeah... this is where most of my negatives come from... I have learned to just buy more and be patient. I'm not a trader. I'm a guy who would like to have assets.
March 5, 20214 yr 1 minute ago, Snacks said: Yeah... this is where most of my negatives come from... I have learned to just buy more and be patient. I'm not a trader. I'm a guy who would like to have assets.
March 5, 20214 yr 49 minutes ago, Snacks said: I'm a guy who would like to have assets. What kind of assets?
March 6, 20214 yr $2T stimulus passed. We're rich again, everybody. (in nominal, non-inflation-adjusted terms)
March 6, 20214 yr 49 minutes ago, Hank_Hill said: Gonna need the backstory on that one you must not read the Financial Times.
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.