RIP my chance of buying a house then
this post was submitted on 12 Aug 2024
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I assume at this point the windfalls should start trickling down right? Any moment now right? You can use this mythical trickle down economic effect I have heard about to buy a house with cash.
inflation troubles: When worker wages outpace industry profits
Don't worry, though. I'm sure you can finance a down payment on a security deposit for a six-month apartment lease.
But we're reporting record profits so much that there were stock buy backs. Weird.
Well there's sure SOMETHING trickling down... it's not cash tho
I don't think that really changes a huge amount with the economy.
If there's 150,000 people who want to live in an area, and only 100,000 homes, then only ~67% of them will be able to buy a house there. The price is the most that any of those poorest 33% of people are willing to pay (or rather the most that the banks are willing to lend them).
If you were in the poorest 15% of people before a recession, then chances are you'll be in pretty much the same place during and after it.
Sure, there's a bit of wiggle room where they still ask stupid high prices for a bit before realising that nobody has any money, but as soon as banks are willing to lend 10% more, the house prices will soon follow.
The can has been kicked, the stock market is safe for another month!
"there's no way for us to make money on a recession right now, and it doesn't seem to be swaying votes to the despot, so we have delayed the recession until after the election."
"... To sabotage any progressive domestic policies we don't like from the new administration"
Because Biden has done a good job and Kamala has a good shot of winning we no longer are headed towards a recession. Was the outlook of Trump winning causing the previous prediction? If so why don't they just say that.
No, it was unrelated to the presidency. The president usually doesn't affect monetary policy.
The president usually doesn't affect monetary policy.
Emphasis added. We have been well outside of norms since the end of the Obama presidency.
We're outside of presidential norms whenever there's a conservative president.
Trump pressured and threatened Powell for months before the FED inexplicably reduced rates to 0, after we printed trillions of dollars of stimulus. All the pain and hardship you've felt paying inflated prices for everything for the last few years was almost certainly caused by Trump interfering.
Except for the fact that Trump’s massive pressure on Jerome Powell did exactly that. The results were historic low interest rates and printing of money by the trillions, which was the precursor to the greed-flation we’re faced with today.
Obama isn't exactly innocent of that either. The interest rates should have started increasing by about '16 or so, yet the Fed didn't raise them.
I kind of think we've essentially been in a recession since 2008 and they've just kept kicking the can down the road to keep the bare essentials running, albeit at an increasingly worse rate.
But it has to all blow up eventually, because on our current trajectory it seems like the end state is to have everything owned by like 3 guys while everyone else presumably digs turnips out of the mud like a medieval peasant until the air catches fire. Which doesn't seem very sustainable.
"No recession, for realsies! Now be optimistic and rack up that debt! Maybe get another mortgage! Don't worry, this economy is fire!"
/- the Bank, with absolutely no ulterior motive behind its messaging whatsoever
I mean in their terms a recession has a very specific meaning and does not preclude a large number of people suffering an affordability crisis.
You can't just avoid a recession infinitely, the economy is cyclical - it's coming. People will debate about when right up to the day it's official.
Not to mention "soft landing" implies the economy went down - e.g. a recession. So at best they're saying things recessed softly?
Kinda wild to think we're not already or still in one.
“soft landing” implies the economy went down
yeah. the afetrmath of the COVID recession, it is not a big mystery what they mean
Soft landing has been in reference to bringing inflation down and supply / demand back in balance.
A recession is in reference to economic growth, and the US has been fairly solid there.
Hahahahahahahaha that's not good
Forgive me if I don't believe you BoA, seeing as you're underwater from quite a few bad bets (read: short selling) and your customers credit lines are squeezed to the brink....