Sorry for the fixed income diversion, you're right I know the common usage I just think it's entitled seniors misusing a term. I don't however, get why you think a senior is worse off today than say 10 years ago or 50 years ago if the real interest rates haven't changed appreciably?
This fed is a Fu$king joke.....I was listening to the 2:30 conference and laughed at all worthless dribble that came out of her mouth....as I said a million times the fed has no clue what they are doing....they bowed down once again to wallstreet... Now for the next 3 months we have to hear about the next meeting and what they are going to do which is absolutely nothing. The fed can't raise the rate one singe 1/4 of a percent... What does that tell you...that the economy is Fu$king worthless...
Seriously, "Hedonics"? Let's get intuitive here. The price of energy is down 70% from 2008, the price of mineral commodities down 40%. Oh, and you might have heard of that housing bubble bust, somebody's renting one of my houses for far less than the market rent in 2007, thats called deflation, not inflation. That gets priced into almost every necessity of life in a big way. There's no way that leads to high inflation. I'd love to see a detailed quantitative analysis by someone with a math or economics degree backing the hedonics out of core inflation and coming up with an appreciably higher number, have you done that or can you point to it? If not, again you want us to come around to your point of view simply because you say so, not very effective is it?
Exactly.... With cnbc asking the same question over and over and over it gets really tiring... This market is one big laughing stock..the fed is one big laughing stock...
The fed said they aren't raising rates until the labor market improves???? Improves???? What has happened the last 6 years...is 5.1% unemployment rate not good enough...and then they said inflation is below their key level....really no inflation haaaaa. Rents..housing ...goods and services..tuitions. Food...hotels..meds. ..etc etc just skyrocketing..
I don't want you to come around to my point of view at all. I certainly don't care if you prefer to think that hiking 25bps is dangerous to the economy after 7 years of ZIRP has done absolutely nothing for it. Typical Krumanite view - if spending money or printing money didn't work, it wasn't large enough. You can think whatever you want, and we can all think it's humorous if we want. That way everyone is happy. Comparing your rental unit now to what it took in at the height of the bubble is more what I'd call a statistic game than actual truth. Why not go back 10 years, overlay rent, food at home, medical with real wages? Bonus points if you exclude the top 1% from the wages calc. See if everyone is better off.
No, not because I simply say so, but because i have open eyes and see the prices I pay for goods and services increasing by waaaay more than 2% year over year ever since the Fed started printing money... I'm guessing your butler or personal assistant is doing your shopping and you don't even bother to check the bills... too busy winning people over to notice reality? And don't tell me those "independent public and private sources" you mention are really independent or worthy of trust and not just manipulated. Also, why don't you follow your own advice and provide some hard facts on this, instead of simply your words. What "independent" sources? A list please..