First no
Chia Pets now this?
This tariff madness ahs got to end!
(Free with account)
brokers and renters say privately that the volatility in the stock market and economic uncertainty sparked by the ever-changing tariff landscape has made some affluent renters and even some buyers hold off on a pricey Hamptons vacation this summer.
Looks like rich know how to hold on their money as compared to people starting to finance grocery purchases….
I believe Fed policy is “too lose” and will lead to inflation.
but so far it is not happening in food.
Tsk tsk on Fox Business for getting it wrong.
But borrowing was already going up since Covid. Then prices spiked. Then there was no real drop in grocery prices but just A drop in inflation rate so now people are even borrowing to buy groceries
Not sure what the current rate of inflation has to do with that or even this admin
But anyway Hamptons! We go north fork every year. The quieter fork
Those two are directly related.
Yep…it appears it would be better to be an illegal alien and get flown to your luxury hotel that’s paid for by Democrats spending tax payer dollars.
Can’t read the article.
I wonder if it’s foreign travel more than tariff uncertainty? I would think Hampton renters have enough firepower to get the summer rental…
Borrowing for groceries is not driving inflation.
That was me in 2014. Never again.
…and I’d guess the top two factors in the equation contributing to this are; safety concerns and boycotting.
No, but borrowing generally (esp consumer borrowing) is.
Inflation is always and everywhere a monetary phenomenon.
A bridge collapses choking the supply chain: Inflationary or deflationary?
—> Inflationary only if consumers reduce savings/increase debt and bid-up prices
—> Deflation only if consumers decide to maintain current savings/debt (Then they have no additional spending power and never bid-up prices.)
A bridge collapse, a tariff, bad wheather, a terrorist attack etc. are neither infaltionary nore deflationary. They are simply negative economic shocks and could go either way depending on how households respond.
A region receives 100mbl of oil per day.
One of the pipelines breaks. It now receives only 90mbl oil per day.
Consumer 1 decides:
“My savings plan is important to me. I will simply drive less. Or buy fewer apples”
Consumer 2 decides:
“I cannot and will not reduce my driving. I will simply have to borrow more and save less and bid-up the price of gas. I will pay whatever it takes.”
Inflation measures the impact of consumer 2.
Inflation is 100% dependent on people reducing savings and increasing borrowing. It does not happen any other way.
(The money has to come from somewhere.)
Safety?
I think some people are boycotting the us and some are concerned about being turned away at the border.
Do you think they are concerned about safety in the US?
This is a have way of looking at things. Is supposes people have the choice to drive or not. Many don’t. They have to go to work or they won’t make rent and they will lose their home.
Likewise tariffs. You suppose people don’t have to buy things like diapers and underwear and socks and baby formula and food.
Your are analyzing this as if the country is filled with people with ample disposable income and savings cushions that allows them to easily alter their lifestyles. Most people can’t.
I’m just telling you the way the major respected economists do it.
Recall the context of the converstation
I am explaining the reason fro my previous post.
When the Fed raises or lowers interest rates because of inflation, this is why they do it.
When Nobel Laureate Milton Friedman said “Infaltion is always and everywhere a moentary phenomenon.” this is exaclty what he means.
A bad thing happens, (corporate greed, terrorist attack, a tariff, whatever) whether the result is inflation or defaltion is 100% totally dependent on how consoumer respond.
Don’t have savings and need diapers? When inflation happens it means those folks borrowed more and saved less. Their money, the additoanl money the paid for the additonal cost of diapers, came from somewhere. Where did it come from?
Boycotting?
Whether the tariff or the reaction to the tariff causes the inflation is a distinction without a difference.
You seem to think I am debating here, like I amtrying to make a poltical point.
I am not.
I am mansplaining, no different than if I were explaining what a spark plug does or how to use a crescent wrench. (This is fundamantal stuff.)
If I were making a distinction without a difference then we could get rid of the Fed. The Fed raises interest rates to reduce inflation, why? Because raising interest rtes reduces borrowing and increases savings.
Coroproate Greed? Bridng falls down? Tariff enacted? Doesn’t matter which.
When interest rates are 20% people respond one way to economic shock.
When interest rates are 0% they respond the opposite way.
That’s just fact. Just simple fact.
The shock itself is neither intrinciscally inflationary nor intrinsically deflationary.
Get off you debating horse and re-read the context.
NYC has seriously hurt it’s reputation around the nation and I’d expect that many who would have vacationed there, will not, due to this.
The Hamptons are over 2 hours from NYC.
