U.S. Inflation Accelerates to Six-Year High, Eroding Wages

https://www.bloomberg.com/news/articles/2018-06-12/u-s-inflation-at-six-year-high-eating-away-at-wage-increases

Well, inflation-adjusted pay unchanged over 12-month period.

It’s not natural inflation. The Fed has been talking about this for over a year. Where have you been? It’s called market manipulation in the real world and has been ongoing for a while now.

Sticker shock on that national debt may end up jaw dropping.

The economy isn’t the problem. It’s doing better. Shock, surprise. The FED is the cause of the issue. Maybe if they weren’t constantly trying to manipulate the value of our money, we wouldn’t have these worries.

Happens when people spend money they should be saving. (Hmm, I wonder why they did that.)

It’s the old paradox that happens when cent. gov. tries to make usspend our way to prosperity.

Source: https://www.reuters.com/article/us-usa-inflation-explainer/explainer-rising-u-s-inflation-and-what-it-means-for-markets-idUSKCN1FX32F

You mean a stimulus? When did we get another one of those recently?

LATEST NEWS
PUMP PRICES CONTINUE TO DECLINE AS U.S. DEMAND DIPS

We’ll be fine.

https://gasprices.aaa.com/news/

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That is for gas… the hell man? So if we have low gas prices, all other prices dont matter?

Most products depend on fuel to reach their destination. Thats not to mention the products that are produced from oil.

What do you think the primary driver of prices for consumer goods is in an industrial economy heavily dependent on OTR transportation for such goods?

Perhaps this will help you.

With energy costs falling the rest will follow.

From DOL BTW.

https://www.bls.gov/cpi/

It will happen from time to time.

So, if consumer demand is driving up consumer prices, I guess demand for other stuff could be driving up prices for other stuff too.

Yeah the Schiller (CPI-adjusted) P/E is higher now than it was at the Crash of '29.

IOW, consumer inflation may be (only) 2.8%, but the stock market is inflated to dizzying heights.

Hey, what’s gonna happen when retirinh baby boomers start selling their stocks to fund their retirements?

Oh my, and the hits just keep coming. It seems there is a lot of variability from one metro area to the next, but on average home prices are now higher than they were at the height of the real estate bubble.

In fact, while it may mean “bigger homes are selling,” (different than “average homes selling for more,”) the average home sale price today is 6.7% higher than at the height.

https://amp.cnn.com/money/2018/04/24/real_estate/home-prices-rise-case-shiller/index.html

I wrote this on a thread back in late April:

[quote=“lulubee, post:35, topic:336”] …my friend who owns a mergers and acquisition firm, and is also an economist, plus teaches a course at Harvard Business School. She told me everyone in the business (including her) have pulled out of the market and are in all cash because in the next 18-24 months there will be a huge crash (bigger than 2008.) It has to do with the huge gap between the S&P and what’s been bought on margin. Gap is many times bigger than it was in 1929, 2001 and 2008
[/quote]

I had asked her what we should do with all the extra cash we have now since we are no longer paying college tuition.

For now I’m sitting on it, but I haven’t sold anything in my investment accounts.

As for housing - it’s gone crazy where I live. Houses selling as soon as the go on the market and for way over asking. I’ve been here 28 years and I’ve never seen a market like this in upstate NY.

I had asked her what we should do with all the extra cash we have now since we are no longer paying college tuition.

For now I’m sitting on it, but I haven’t sold anything in my investment accounts.

As for housing - it’s gone crazy where I live. Houses selling as soon as the go on the market and for way over asking. I’ve been here 28 years and I’ve never seen a market like this in upstate NY.
[/quote]

I has at an HBS reunion in May, 2007 listening to a presentation by one of the investment management professors. among other things, he said this: 1) all the institutional real estate people he was talking with were terrified; 2) the only investment that nobody wants is cash.

Perhaps we should encourage the fed to start pumping billions into the stock market again… ya know, just to make the economy look good…

You are not serious, right.

You are pulling old Biggestal99’s leg.

you rascal, you actually had me for a minute there

Allan