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4.9% GDP Growth


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19 hours ago, I am the egg man said:

Another indicator of Joes "soaring" economy:

 

 

Last year: Isn't it about time we stopped all those special COVID payments, eviction moratoriums, student loan forbearance, etc?

This year: Hey, look, bankruptcy filings are up! It must be Biden's fault!!

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6 minutes ago, The Frankish Reich said:

Last year: Isn't it about time we stopped all those special COVID payments, eviction moratoriums, student loan forbearance, etc?

This year: Hey, look, bankruptcy filings are up! It must be Biden's fault!!

You forgot higher interest rates due to skyrocketing inflation since 2022, now the highest since 1983.
 

https://www.cnbc.com/select/interest-rates-rising-saving-more-appealing-debt-more-harmful/

“The Fed has repeatedly raised rates this year in an effort to corral rampant inflation that has reached 40-year highs.”

 

“Higher interest rates may help curb soaring prices, but it also increases the cost of borrowing which can make everyday financial products more expensive, like mortgages, personal loans and credit cards.”

 

Though, no doubt, Joe deserves a free pass on this as well.👌

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25 minutes ago, I am the egg man said:

You forgot higher interest rates due to skyrocketing inflation since 2022, now the highest since 1983.
 

https://www.cnbc.com/select/interest-rates-rising-saving-more-appealing-debt-more-harmful/

“The Fed has repeatedly raised rates this year in an effort to corral rampant inflation that has reached 40-year highs.”

 

“Higher interest rates may help curb soaring prices, but it also increases the cost of borrowing which can make everyday financial products more expensive, like mortgages, personal loans and credit cards.”

 

Though, no doubt, Joe deserves a free pass on this as well.👌

I'm not saying Biden "deserves a free pass."

I'm saying that this form of argument is not persuasive to any rational person. In other words, urging the Administration to cut off the flow of public benefits, and then decrying the resulting rise in bankruptcies.

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17 minutes ago, The Frankish Reich said:

I'm saying that this form of argument is not persuasive to any rational person. In other words, urging the Administration to cut off the flow of public benefits, and then decrying the resulting rise in bankruptcies.

Urging and actually cutting the flow of public benefits don’t go hand in hand.

 

Title 42 has ended to increase benefits for illegals, Medicaid is expanding, the SNAP is growing, all public benefits.
 

Job loss, medical expenses, and escalating mortgage payments are the most common reasons people file for bankruptcy.

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"special COVID payments, eviction moratoriums, student loan forbearance"

 

All emergency and had end dates.

 

Not means tested, income-based welfare.

 

The bills all have to be paid, just kicking the can adds interest to them, driving up cost.

 

 

 

 

 

 

 

Edited by Tommy Callahan
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16 hours ago, John from Riverside said:

This is where I take my pension, and what you’re saying is complete horseshit there is nothing wrong with our pensions

It's fact.  With sources.  Your reply sounds like cognitive dissonance 

Edited by Tommy Callahan
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3 minutes ago, Tommy Callahan said:

Due to it's reserves being mostly real estate.....

 

 

 

To everyone who's been calling for deflation - this is what deflation does.

I've been saying for a long time that commercial real estate will lead the next financial crisis.

And still, where I live, I see new commercial office space projects being built all over the place.

COVID didn't create the flight from the office; circumstances were already ripe for that to happen. It just sped up the inevitable transition. It won't be reversed.

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4 minutes ago, The Frankish Reich said:

To everyone who's been calling for deflation - this is what deflation does.

I've been saying for a long time that commercial real estate will lead the next financial crisis.

And still, where I live, I see new commercial office space projects being built all over the place.

COVID didn't create the flight from the office; circumstances were already ripe for that to happen. It just sped up the inevitable transition. It won't be reversed.

Pick a bubble.  I don't disagree but commercial real estate is only one of them. 

 

Remember an old saying about  People love deflation.  Government and corporations hate it.  And vice versa 

 

 

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29 minutes ago, The Frankish Reich said:

To everyone who's been calling for deflation - this is what deflation does.

 

Who has been "calling for deflation"?

 

Deflation is really dangerous and undesirable.

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28 minutes ago, The Frankish Reich said:

There's a number of posters here who mocked Janet Yellen for saying "don't expect prices to fall."

 

No biggy.

I just have not seen anyone calling for deflation.

Inflation at levels above 3-4% is a problem.

Deflation is a major problem.

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https://www.cnbc.com/2024/02/02/us-economy-added-353000-jobs-in-january-much-better-than-expected.html

Job growth posted a surprise increase in January, demonstrating again that the U.S. labor market is solid and poised to support broader economic growth.

Nonfarm payrolls expanded by 353,000 for the month, much better than the Dow Jones estimate for 185,000, the Labor Department’s Bureau of Labor Statistics reported Friday. The unemployment rate held at 3.7%, against the estimate for 3.8%.

Wage growth also showed strength, as average hourly earnings increased 0.6%, double the monthly estimate. On a year-over-year basis, wages jumped 4.5%, well above the 4.1% forecast. The wage gains came amid a decline in average hours worked, down to 34.1, or 0.2 hour lower.

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1 minute ago, Tommy Callahan said:

 

That's the danger here for the administration,  They're telling us, whether the numbers are reflective of actual conditions or fake. the economy is humming along in great shape but its not translating to good times for the working person that has work multiple jobs, tap savings, and assume debt just to make ends meet.  So the Fed holds off on rate cuts because of the job market numbers.  Expect no rate cut in March.

My expectation is the straw that breaks the Camel's back is going to be stress in Commercial Real Estate (it was housing last time, are we seeing a pattern yet?) which has been brewing below the surface for about a year now that erupts into a banking crisis which forces the Fed to once again move in to rescue the banks from loan defaults, lower property values, bankruptcies, and high vacancy rates.   

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