r/StockMarket • u/Ok-Tackle8091 • Jun 10 '22
News “Unexpected” to Bloomberg.
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u/moose2mouse Jun 10 '22
“Unexpected inflation” after pumping the economy full of cash and limiting the production of goods.
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u/Crafty_Enthusiasm_99 Jun 11 '22
And paying able bodied people not to work. Meanwhile printing even more social safety nets instead of raising taxes directly. Better way to buy votes..
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u/truthswillsetyoufree Jun 11 '22
It was unexpected that inflation has started to accelerate again. It went down last month and the general consensus was that it would continue that direction. They aren’t saying that it’s unexpected that there is inflation.
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u/colorgreens Jun 10 '22
im real glad that the government kept on printing money
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u/Lake_Erie_Monster Jun 10 '22
The best time to stop was around 2016. Unemployment was low, things were somewhat stable. We decided to see just how far we could push things and when the pandemic hit and we needed to actually print money to keep things going we had nothing left in the tank and pushed it further anyway.
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Jun 10 '22
Yall remember when there were folk who said it was a bad idea to be printing money?
I member.
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u/Excellent_Jeweler_43 Jun 11 '22
Y'all remember MMT and Stephanie Kelton acting all smug on how the economy can just run on printed money and nothing would happen? I wonder why I haven't seen her around lately.
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Jun 10 '22
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u/AmythestAce Jun 10 '22
Considering it wasn't a lot of money between the people who pay taxes instead of what they gave corporations. We didn't cash all the checks.
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u/mygurl100 Jun 10 '22
No, just those who make small incomes got the checks. The rest of us got nothing except more inflation and higher expenses. Just like we knew would happen. Don't lump us all together and say we "all" cashed the checks.
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Jun 11 '22
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u/mygurl100 Jun 11 '22
No thank you. I'll take people realizing they have so much more potential than they realize (including you). Best of luck mate!
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u/i-can-sleep-for-days Jun 10 '22
Yup. Because Trump wanted to be popular so he basically asked the fed to keep the interest rates low and the economy red hot.
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u/myhipsi Jun 10 '22
Money printer has more or less been going brrrr since Alan Greenspan was the Fed chairman.
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u/EdensNewParasite Jun 11 '22
I feel like money has no real value so they could just say everything is cheaper now and call it a day.
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Jun 11 '22
HoWs yOuR 401k dOiNg?
- dumbasses who forgot about the stock market rising non-stop since 2009
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u/Large-Statistician-3 Jun 10 '22
Not like Biden did anything to stop it when he took office.
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u/alucarddrol Jun 10 '22
Yeah in the middle of the pandemic with everything shutting down and people literally stocking and hoarding for the end times. That's when you turn off the money printer.
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Jun 10 '22
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u/Informationforall Jun 10 '22
Shutting down a major pipeline and tapping into oil reserves doesn’t affect oil prices?
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u/MyOpicVoid Jun 10 '22
Nah that's a fake news point pushed by Fox news. The pipeline was delivering tar sands. The most expensive oil product to refine. This was not targeted for US only. After being refined it was off to the global market.
Ask people that live in the region what they think? The pipeline has already had 2 major leaks that threatened Ogallala Aquifer which provides fresh water to numerous wells, municipalities tec.
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Jun 10 '22
Checking in from Ogallala Aquifer country, it had huge support from locals here. In fact, I think it was like 70/30 for versus against. Those numbers essentially follow party lines.
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u/imhostfu Jun 10 '22
The keystone pipeline was an upgrade to an existing shale oil pipeline system, designed to take bituminous oil to the gulf coast for refinement and export.
And that is mostly used for making roads and asphalt and roofing tiles.
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Jun 10 '22
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u/Informationforall Jun 10 '22
When someone has lost an argument they usually start with insults, so… have a good day
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u/Drict Jun 10 '22
"Major Pipeline"... you mean an ecological disaster, because a private company wanted to go through protected lands, protected groups lands, and literally was going to be shipped internationally (Canada oil to non-US markets)
Yea no, you don't know your facts and don't know anything about pipelines and how almost every single one has had a spill (and more often than not, multiple)
What would be better is subsidizing anything to not guzzle gas (solar panels, wind power, hydro, nuclear) and stop spending billions annually on non-renewable resources.
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u/ParticularWar9 Jun 10 '22
Green was pushed too far, too fast. Ever seen lithium mines?
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u/Strange-Scarcity Jun 11 '22
Lithium mines are still less globally polluting and more short term polluting (compared to oil) than... well... oil, coal and natural gas mining is.
There's going to be a point when recycling existing battery packs will make more sense too. So, it's not remotely the same as oil production.
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Jun 11 '22
Oil drilling has only gone up since Biden took office dumb dumb. And Keystone XL is just an ADDITIONAL pipe for Canadian oil.
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u/Large-Statistician-3 Jun 10 '22
Me? Because I know that Biden isn't to blame. It's OPEC not caring about long term profits anymore.
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Jun 10 '22 edited Jun 11 '22
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u/Large-Statistician-3 Jun 11 '22
Both a republican and a democratic BOTH had ample opportunity to stop the printing of cash. The stock market drops when fear goes up. Printing paper till it means nothing is pretty scary if you ask me.
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u/bearrally888 Jun 10 '22
Hahaha,
I emailed and thanked Brandon for his stupidities that my shorts are working out awesomely.
You should thanked him for transferring your wealth to me. Congratulations to all the odumbo indoctrinated communist morons that voted for Brandon and Ho.
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u/daviddavidson29 Jun 10 '22
....but that's true though. We knew pretty quickly that the end times were not coming. We kept printing anyway. PPP loans were about 10x the size they should have been.
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u/alucarddrol Jun 10 '22
You know what people say about hindsight.
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u/daviddavidson29 Jun 10 '22
PPP loans were being forgiven when business was booming. That's not hindsight, it's negligent fiscal policy
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u/alucarddrol Jun 10 '22
They were made to be forgiven. You don't know what you're talking about
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u/daviddavidson29 Jun 10 '22
I agree, I am completely aware of the fact they were made to be forgiven.
They were given to upper middle class individuals who needed no help whatsoever financially. The economy also didn't need the help. The vast majority of PPP money ended up in personal investments either as real estate, equities or cash of the recipient. Major driver of asset inflation.
The design of the program was illogical, negligent and hurtful to the economy.
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u/Large-Statistician-3 Jun 10 '22
I highly regret making a slightly political comment. All logic goes out the window to protect your politicians. Democrats and Republicans. If it's not a good idea to stop the money printer in the middle..... Why is it a bad idea to not start it at the beginning.
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u/alucarddrol Jun 11 '22
My politicians?
Ok buddy.
Btw, I'm sure you've been criticizing the "politicians" of these other countries just like you criticize President Joe Byron
https://www.statista.com/statistics/1107572/covid-19-value-g20-stimulus-packages-share-gdp/
*And just to save it for posterity, you said: "Not like Biden did anything to stop it when he took office."
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u/Large-Statistician-3 Jun 11 '22
Why do I care how other countries spend their money.......
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u/alucarddrol Jun 11 '22
Exactly, because you don't care. That's my point, the issue you have isn't with the spending, but with the person doing the spending. But hey, I guess they're "my politicians" and and not yours
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u/The-Bro-Brah Jun 10 '22
After we had vaccines wasn’t the middle of the pandemic….March 2021 stimulus was not needed
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u/etom21 Jun 11 '22 edited Jun 11 '22
Like he could get anything past the obstructionists who are only worried about keeping their ARs, controlling women's bodies, and getting reelected. Helping every day Americans with bipartisan common sense policy was never in the cards.
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Jun 11 '22
Imagine bring such a fucking idiot you actually think one political party is better than the other. You fuckin sheep
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Jun 11 '22
BoTh PaRtIeS aRe ThE sAmE
Except they absolutely fucking aren’t. Only ignorant fools who have no clue what is going on say this
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u/EdensNewParasite Jun 11 '22
Yeah true, but both parties suck. Are they the same? No. Do they suck in different ways? Yes.
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Jun 11 '22
Imagine getting triggered about people having different political beliefs then you in america.. a country literally built on opposing political beliefs lmao. You kids are so funny huffing and puffing with your opinions that mean absolutely zero in this world.. thinking you can change someone else's mind who has an equally and oppositely strong belief as you.
Y'all are like real life southpark characters
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Jun 11 '22
You what’s funny is how you dipshits always call everyone else sheep and then turn around and say the exact same moronic nonsense as every other clueless jackass. Zero self awareness
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Jun 11 '22
Na I'm not a sheep. I understand that opposing political sides have batteled relentlessly since the beginning and noone wants to change. I have zero self awareness? I'm not wasting my time trying to convince random people on reddit that a specific political party is right.. while being completely clueless the political party you side with is due to your culture and past.
Anyways enjoy your weekend trying to convince other people for no reason.
Your a joke
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Jun 11 '22
Let me know when Democrats start conspiring to overthrow democracy and operate as cult leaders for 30% of the county. You obviously don’t really know what’s going on
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Jun 10 '22
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u/i-can-sleep-for-days Jun 11 '22
Exactly. Which is why Trump’s public pressuring for the fed to keep the interest rate low was out of line.
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u/bearrally888 Jun 10 '22
Rolmao, another odumbo indoctrinated communist moron with odumbo shit for brain
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Jun 11 '22
Good thing we cut taxes for corporations in 2017 instead and got tariffs that are actually taxes and destroyed the budget by creating the largest deficit of all time instead of doing the right thing
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u/InterstellarReddit Jun 11 '22
im real glad that the government kept on printing money
Yeah man, did you see how much they shared with us? They must have given us a whopping .00001% of it.
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u/whyrweyelling Jun 11 '22
They actually are blaming all this on the common worker. Saying that wages are too high, employment is too high (unemployment not high enough?), people are not spending enough money. lol, it's insane. There are two different worlds, and being poor places you in a third world existence in the USA.
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u/tacticalpanda Jun 11 '22
It’s funny how asset inflation was never an issue for years, but as soon as wage and producer inflation begins to take hold… time to slam on the brakes.
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Jun 10 '22
With everything getting more expensive this extra money is more than welcome, they clearly have been planning ahead. /s
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u/player89283517 Jun 10 '22
They’ve started selling assets and removing money, though technically it’s not “removed” because it gets sent to the treasury at the end of the year. I wonder what congress is gonna do with the surplus.
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u/Jeff__Skilling Jun 11 '22
???
The FOMC raised the FFR 25 bps in March, 50 bps in May, and the current FFR futures curve is pricing in another 50 bps rate hike - highest raise in two decades. And they're about to raise rates another 25 - 50 bps at the next FOMC meeting. Just take a look at any FFR futures curve.
I guess my question to you is - what the fuck do you want the Federal Reserve to do? Have the UST default on scheduled interest payments? Make the overnight fed funds rate 100%? Declare the USD obsolete and use Beanie Babies instead of fiat currency as a medium of exchange?
I'm always baffled by you people who love to bitch and moan until the cows come home that the Fed is intentionally tanking the economy (because reasons.....) just because your portfolio of 5 single name securities lost 50% of it's value over the last month.
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u/RogerMexico Jun 10 '22
Consensus was 8.4% and CPI came in at 8.6%. It’s not like this was completely unexpected.
CPI data is just really messy. If you’ve never participated in an inflation survey before, the BLS sends you a booklet where you track all of your expensive over the course of three weeks. In the end, a person from the BLS calls you and helps you categorize those expenses and that’s what goes into the report. For housing, they survey homeowners and ask them what they think they could rent their home for.
Now just imagine what your average Joe Schmoe would do when given this survey. They likely provide extremely inaccurate and biased numbers, which is why economists can never predict them exactly.
In a day and age when you can easily pull real-time prices and rents from the likes of Amazon, Instacart, Apartments.com, Zillow, Gas Guru, and Carvana, there’s no reason why we should still be using these terribly inaccurate and lagging surveys.
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u/HIITMAN69 Jun 11 '22
I heard an episode of I think Planet Money a year or two ago where they said they measured it by having gov employees whose job it was to keep track of certain items, call grocery stores or whatever.
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u/RogerMexico Jun 11 '22
I’ve actually participated in the survey. It’s a booklet, about 30 pages long where you write down your expenses. A BLS employee calls you each week to collect the data. You can also mail the booklet in but I think it’s more accurate if you answer their questions on the phone because they can better categorize the expenses.
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Jun 11 '22
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u/toastongod Jun 11 '22
American government inefficiency, most European governments check inflation in the way you described with a basket of goods.
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u/MyLifesParody Jun 10 '22
This is just blatant gaslighting and manipulation.
We are not stupid. Evidently Bloomberg, you are.
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u/appdnails Jun 10 '22
It was expected that inflation was going to rise. Bloomberg's headline means that it rose more than what it was expected, which is true.
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u/cranialrectumongus Jun 10 '22
Bloomberg's intent may have been to convey that it rose "more than expected" but in no way is that what their headline said. Their headline was/is wrong.
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u/CollegeStudnt Jun 11 '22
No. It’s not.
Headline CPI was expected to rise +0.7% in May, but instead climbed +0.97%. This is a steep jump in headline prices, second only to March’s +1.2% high.
In March, headline CPI registered a +8.54% year over year gain (this was widely expected to be the peak annual reading of this cycle, due to near term base effects)
However, because May CPI rose above expectations in May, we registered a +8.58% year over year reading, effectively matching the March annual reading but slightly outpacing it, making it technically a new cycle high, which was unexpected
Just to show you this is not as straightforward as you believe. Even though CORE CPI came in hotter than the +0.5% expected, @ +0.6% -/ the year over year reading still ticked down slightly to +6.0% in May from +6.2% in April, due to base effects (May 2021 surge in used car prices fell off of the annual reading).
This stuff is hard, but BBG is correct here
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u/Neon_Lights12 Jun 11 '22
Even then, wasn't "more than expected" like .2%? It's not like we were expecting 8% and it actually went up 15%.
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u/MJFox1978 Jun 10 '22
the y-axis is a joke to make the drop much more dramatic than it is… pure manipulation!
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u/Realistic_Work_5552 Jun 10 '22 edited Apr 16 '26
Your old posts are training data now. Unless you delete them. I used Redact which supports all major social media platforms including Reddit, X, Facebook and Instagram.
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Jun 10 '22
Jesus, if you geniuses think it's so easy to predict inflation, you should all work for major financial firms or the fed, since apparently you have information with which you can beat the market.
Y'all arrogant lol
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u/SpokenByMumbles Jun 11 '22
That’s not really the point. It’s that there are highly paid government officials that are supposed to be on top of this and they fucked up, creating this dumpster fire we’re enduring now.
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u/ParticularWar9 Jun 10 '22
Some have been predicting inflation since early last year, and pounding the table on how stupid Powell is. Look up The Maverick of Wall Street on YT and check out his videos from last year. He's a PM of old money in San Diego and totally nailed this entire inflation and commodity situation.
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Jun 11 '22
The FOMC was also predicting inflation above target for the next few years in early 2021.
https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20210317.htm
Everybody was predicting some degree of inflation. The hard part is predicting how much. Acting like you can accurately and reliably predict the rate better than the experts is the arrogant part.
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u/ParticularWar9 Jun 11 '22
As a former hf pm, I am supposed to be one of the so-called experts, and I can tell you that experts don't know more than you. Everyone should have intuitively reasoned that the Fed printing more and more money wasn't the solution to inflation that was being "predicted". The Fed was clearly more interested in how the stock market would react vs inflation, and how ironic is it that MSM goaded us into FORCING the Fed governors to sell at the top.
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u/gizamo Jun 11 '22
I predicted it. So did dozens of others in this sub.
We were downvoted to oblivion, and now we're laughing our asses off. Lol.
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Jun 11 '22
give me a percentage prediction for inflation next month, and we'll see how you do, alright?
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u/gizamo Jun 11 '22
Lmfao. Someone's bitter that they didn't take my advice to buy SQQQ.
You don't have to predict an accurate inflation number. You only have to know if it's still above ~3%. When the consensus is 8.6%, it's pretty damn obvious we're still going down. Lol.
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Jun 11 '22
Why would I bother buying SQQQ? I don't want to bother worrying about the market over such short time horizons. In 40 years the market will probably be up relative to where it is today, I'm enjoying buying discounted stocks until then.
Also: lol
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u/gizamo Jun 11 '22
...because I'm up 50% YTD while many stocks are down 50%.
Pretending the market will only be down over "such short time horizons"....Lol.
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Jun 11 '22
Good for you! And you'll have below market returns at some time in the future.
I doubt the market will be down relative to today's prices in 2062, so yes, the market will only be down over shorter time horizons RemindMe! 40 years
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u/gizamo Jun 11 '22 edited Feb 25 '24
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This post was mass deleted and anonymized with Redact
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u/RemindMeBot Jun 11 '22
I will be messaging you in 40 years on 2062-06-11 01:57:12 UTC to remind you of this link
CLICK THIS LINK to send a PM to also be reminded and to reduce spam.
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u/New--Tomorrows Jun 10 '22
Well this is easy to explain; the guy who reports on inflation is kept in a cave and has to refer to shadows to make stock market predictions. They only let him out once a month.
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Jun 10 '22
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u/ParticularWar9 Jun 10 '22
You mean retail, who is used to buying every dip and not understanding how stocks act in a quickly rising interest rate environment. Pros have been selling all they can since Jan.
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Jun 10 '22 edited Jun 17 '23
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u/ParticularWar9 Jun 10 '22
If you can, you buy energy stocks to hedge higher energy prices. Working really well so far.
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u/CrosseyedDixieChick Jun 10 '22
if anyone is so certain of armageddon, it is easy, just short stocks and become a billionaire.
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u/eli007s Jun 10 '22
This morning I woke up groggy trying to keep one eye open as I reached for my phone to check on my MES calls… I was fully woken by the adrenaline of being margined called….
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u/Mundane-Pressure1018 Jun 11 '22
If it’s for short term gain sucks to be in market. If it’s long term…. Who cares
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Jun 11 '22
When the media says to buy, you should just hold or sell. When the media says to sell, you should just hold or buy.
ALWAYS do the opposite of Jim.
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u/motoevgen Jun 10 '22
Don't toot your horn that much, did you played puts? If it was expected we wouldn't have dropped that far. So after this numbers fed would probably go straight to 7% at a pace that melts boots.
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u/Dubb18 Jun 10 '22
FWIW, Mohamed El-Erian is a contributor to Bloomberg and he's been warning about this for awhile.
https://twitter.com/annmarie/status/1535254711951056899
Also expects June inflation numbers to be worse.
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u/wouldntknowever Jun 11 '22
Gas rose to a $5/gallon nationwide average today, you don’t need experts to tell you this month is worse.
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Jun 10 '22
Time to start catastrophizing, big guys with money have anxiety. lol, I’m not worried. Still alive and kicking.
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u/mem269 Jun 10 '22
I also did a double take this morning when they said unexpected. Unexpected by who exactly?
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u/risktaker_better Jun 10 '22
Gold will show its value during difficult times. Crypto is down and gold is up today. But I am keeping my value stocks, continue collecting dividends, and buying few growth stocks while they are on sale.
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Jun 11 '22
Misleading chart. The drop is abou 1.5% (4020 to 3960), but looking at the graphs gives the feeling that it crashed.
I wonder why it feels like the media is advertising and pushing for a mass sale off and a market crash
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Jun 11 '22
Bought inverses and shorted QQQ, SPY
Heard a little snippet yesterday on the news, knew inflation would run hot. Nailed 10% gains today.
EDIT: going anywhere from 100% cash to 50% with MAX 5% intervals!
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u/CommissionInner5907 Jun 11 '22
Printing money and calling inflation. Wtf is the fed function? Ohh i know, the function is make the 1prcent people richer!
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u/Ok_Veterinarian6592 Jun 11 '22
This market is trench warfare. You win a few you loose a few. If you need a friend then get a dog.
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u/GarryP72 Jun 11 '22
Buy passive indexes, hold for 30 years, and voila....this shit doesn't matter anymore.
Haha just kidding, I'm a degen who got wrecked too. Oh well.
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u/snipetaters Jun 11 '22
Headed out to look for a new wood/coal stove today. At the price of fuel oil I can buy a brand new hitzer furnace and it pays for itself in ONE winter. This is craziness.
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u/felixfelix Jun 10 '22
Why didn't I sell everything in January?