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Thread: Interest rates in the coming months

  1. #176
    God/dess Eric Stoner's Avatar
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    Default Re: Interest rates in the coming months

    Despite YOUR going over the line and posting anything you want , rather than respond I will try to stay within the four corners of the thread. More or less. I hope you enjoyed your latest rant and feel better now.

    Wow ! That's amazing ! Where do you shop for groceries ?
    Have you stopped eating meat , fish , poultry , eggs and dairy ? All are way up in price compared to last year. Everybody else is paying a LOT more for food compared to last year. At least $500 more per person an an annual basis.
    Are you growing all your own fruits and veggies ?
    Baking your own bread ?
    Rolling your own oats ?
    What do you do for protein ? Make your own tofu ? Catch your own fish ? Raise your own chickens ? Or did you go vegan ?
    Are you fasting more ? Did you qualify for SNAP aka Food Stamps ?
    Just asking. Everybody else is paying more compared to last year. Except you. Please tell us how you did it.

    How exactly does paying at least 50% more on gasoline and heating fuel compared to last year make you feel so good .

    I can afford the increases and I'll grin and bear it. What about all the poor folks who can't afford them ? Who will have to choose between food and heating their houses this winter ? Just so you can feel "clean and green " ?

    Unless your electricity is generated only by wind or nuclear, I question how your supplier will be able to avoid rate increases. How do you heat your home ? Gas ? - Way UP in price . Home heating oil ? Over $2.50 a gallon and climbing . Personally I keep the thermostat as low as I can stand it. Afaic that's why they invented the sweater. You ?

    Interest rates haven't gone up yet but increases are on the way. Powell has already said the Fed will begin tapering its asset purchases. Increased inflation is here and will be around for at least another year. That is NOT me making things up. That is the consensus prediction of every reputable economist and analyst.
    Last edited by Eric Stoner; 10-14-2021 at 09:09 AM.
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    The credit belongs to the man who is actually in the arena... who, at the best, knows in the end the triumph of high achievement, and who, at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those timid souls who know neither.
    Teddy Roosevelt

  2. #177
    God/dess Eric Stoner's Avatar
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    Default Re: Interest rates in the coming months

    Approximately half a million low income homeowners are nearing the end of pandemic era mortgage forbearance plans. They owe as much as $14,200 per person. And now many of them ( in the Northeast, Mid-West and West ) will have to spend as much as 50% more on heat compared to last year. That will result in a bump in foreclosures and higher bank reserves to cover the bad loans which will mean less money available for lending.

    Social Security is granting a 6% COLA increase in benefits paid. Normally , an influx of "new money" like that would cause businesses to respond by increasing production assuming that most of such a COLA increase would be spent. But at present thanks to supply chain disruptions , the global shipping backlog, factory closures abroad and labor shortages here businesses cannot meet current demand. Instead pf producing more they have raised prices. That's what happens when you get more money chasing the same supply of goods. Or in the case of some products, less supply. You can see it with pickup trucks , luxury goods and now Christmas toys. Prices are sky high and inventories are low to non existent.

    Then there's the National Debt. Over half a trillion dollars is required to pay interest on preexisting debt . Money that was borrowed and spent in past years. I will not comment further for fear of getting "political". I will say that not only is there no improvement on the horizon but that things will only get worse.

    Then we have unfunded liabilities. Social Security alone is short $40 TRILLION. That is $40 trillion that was promised in future benefits for future retirees for which there is no money in the Trust Fund. Many states and cities have similar type problems with their pension funds. They do not have enough money to pay the pensions promised to future retirees. They have managed to maintain a veneer of solvency thanks to the performance of the Stock Market.

    So the question is where to put your money ? Cash ? Probably the worst thing to do under current circumstances. Inflation is already eating away at its value and will continue to do so for AT LEAST another year and probably a LOT longer. Gold ? Actually gold has performed poorly. You can't eat it and if you buy bullion or coins you have to store it. Bonds ? A TERRIBLE idea with rising inflation. Even triple tax free Triple A rated Municipal bonds. TIPS ? Not a bad idea. Commodities ? Not bad BUT you are coming late to the party UNLESS inflation increases and continues. Stocks and ETF's ? Yes but be choosy . Financials , Oil stocks and other commodity based stocks are your best bet. Utilities ? Only if they generate most of their power with nuclear and /or wind. Shop carefully.
    Last edited by Eric Stoner; 10-18-2021 at 12:05 PM.
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    The credit belongs to the man who is actually in the arena... who, at the best, knows in the end the triumph of high achievement, and who, at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those timid souls who know neither.
    Teddy Roosevelt

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