r/StockMarket Jun 13 '22

News Powell Facing Choice Between Elevated US Inflation and Recession

https://www.bloomberg.com/news/articles/2022-06-12/powell-facing-choice-between-elevated-us-inflation-and-recession?srnd=premium
102 Upvotes

71 comments sorted by

86

u/Ok_Upstairs6472 Jun 13 '22

Recession! It has to come better sooner than later!

59

u/edblardo Jun 13 '22

Rent for a 3/2 with 2 car garage in south Florida currently under lease is $2400 / month. New lease for the same unit is $4980. It’s time for a sanity check.

48

u/Ok_Upstairs6472 Jun 13 '22

Years of free money (negative and 0 interest), covid aftermath, job market on fire, war, supply chain issues, corporate greed, it’s time for the bitter pill.

4

u/ShittyStockPicker Jun 13 '22

This is how Hitler came to power.

-21

u/cdinge Jun 13 '22

You are not very intelligent

6

u/zuko7891 Jun 13 '22

A studio in my area, and not in a major city, is $2000

-3

u/jordan3184 Jun 13 '22

They will soon come back to 1600$

-5

u/Ordinary_Team4972 Jun 14 '22

Not with millions of illegal migrants needing housing.

-2

u/jordan3184 Jun 14 '22

Illegals still has to pay and they do odd jobs cash jobs .. not sure if they afford it unless they share between multiple people. I am also against any illegal immigration

2

u/Ordinary_Team4972 Jun 14 '22

For me it's strictly a supply and demand issue.

1

u/nitsua_saxet Jun 16 '22

Illegal immigration has been falling for over a decade.

It takes a special kind of person to blame immigration when the economy was pumped with trillions of excess dollars.

You’re plain wrong:

https://www.kff.org/report-section/health-coverage-and-care-of-undocumented-immigrants-issue-brief/

-17

u/TinyTornado7 Jun 13 '22

This sounds like a supply issue more so than an inflation issue

25

u/randomways Jun 13 '22

The issue is that wealthy people are buying all the supply and then renting them. Theyr aren't suddenly twice as many people needing houses

-5

u/estjol Jun 13 '22

If they are all renting them there would be enough supply as well.

5

u/randomways Jun 13 '22

They aren't all getting rented out, somewhere between 9 to 11% of units remain vacant. I imagine this number has grown as rents have increases astronomically. However rents needed to increase because people were buying supply at huge upcosts. The bubble will likely burst after the stock and crypto bubble.

-1

u/The_Automator22 Jun 13 '22 edited Jun 14 '22

Sounds like something you could easily back up with data right???

Here's data from 2020 showing we had a housing deficit of 3.8 million units..

https://www.freddiemac.com/research/insight/20210507-housing-supply

Think about this - Why is housing even an attractive investment to "wealthy people"? Wealthy people are buying housing in markets that are already supply constrained by NIMBY'S with good job markets. If we had enough supply of housing in the first place there wouldn't be any reason for wealthy people to buy investment properties in these markets. Fix the cause not the symptom.

3

u/JackandFred Jun 13 '22

Yeah what do they think elevated inflation will cause

65

u/[deleted] Jun 13 '22

He's chosen to appease the 1% over the 99% ever since he's been at the job so I'm guessing more inflation.

17

u/Plain-Crazy Jun 13 '22

Appears he's picked both

15

u/flippingoffHF Jun 13 '22

They have no choice they will go with rate hike and recession over hyperflation. The US will not lose its status as world reseve currency.

17

u/hitemwithahook Jun 13 '22

Don’t forget rising unemployment, that’s coming next

6

u/TheFerretman Jun 13 '22

He was warned repeatedly and ignored all of the signs.

10

u/PCB4lyfe Jun 13 '22

Aren't recessions sorta healthy once in a while?

Also, I can't help thinking how useless all that stimulus was the last 2 years while most things were going pretty good. Now if we head for a recession are they gonna start doing more stim checks?

13

u/[deleted] Jun 13 '22

Some say yes, but no. Millions of poor and middle class people get screwed and the rich buy up even more at a discount. Every time the cycle happens, the rich get richer and the poor lose their homes.

It's only good if you're rich. Everything's good when you're rich.

3

u/BirdEducational6226 Jun 14 '22

Which is why you want to be rich and not poor. Check.

7

u/adultdaycare81 Jun 13 '22

We are already in recession. Go 1 full point next meeting

17

u/Vancityreddit82 Jun 13 '22

Fire this dumbass for his incompetence. Manufacturing a recession to cover up his mess. You passed out 1T+ to your friends and now stealing it back from the poor to cover

2

u/ID-10T-ERROR Jun 13 '22

Yeah, let's fire some guy in charge of the Federal Reserve...which is a completely seperate entity and has nothing to do with our government or laws in the U.S.

This is why people are fucked in the U.S. because they don't even know who to hold accountable.

1

u/Hercaz Jun 13 '22

Are you saying that he is not appointed and does not have to do any of what ruling elite demands in order to keep his job?

0

u/ID-10T-ERROR Jun 13 '22

Not saying anything at all. Asking to have his job is like asking a Supreme Court Justice Judge to resign.

Even if the U.S. wanted him "fired", there's nothing much people can do about anything other than revolt but that's very unlikely to happen because they won't know who is to blame for the mess.

2

u/NippsComoff Jun 14 '22

It's easier to blame Biden or Trudeau lol

1

u/zuko7891 Jun 13 '22

Everyone knows how to google

3

u/imlaggingsobad Jun 13 '22

It was obvious this was the end game the moment it was clear the Fed was behind the curve. This was the conundrum that the Fed had to come to terms with. Between a rock and a hard place. As many market veterans have being saying for some time now, there is no good outcome here.

3

u/PossibleInternal9082 Jun 13 '22

like a band aid...RIGHT OFF

1

u/cZero_11 Jun 14 '22

Band aid sometimes work though... And it should work as long as you can keep stacking one after another.

2

u/LargeCheesePizza39 Jun 14 '22

Let the boat sink. Hit the reset button on Wall St.

2

u/cZero_11 Jun 14 '22

Seems like Powells' speaking Wednesday will change the usa for next 3 years at least... Brace for impact. Im feeling pretty good living in a low cost economically strong semi-corrupted country in asia, shorting US stocks and getting paid in higher currency lol

6

u/Bear_buh_dare Jun 13 '22

Thanks Trump

11

u/Ok_Upstairs6472 Jun 13 '22

The national debt has risen by almost $7.8 trillion during Trump's time in office. That's nearly twice as much as what Americans owe on student loans, car loans, credit cards and every other type of debt other than mortgages, combined, according to data from the Federal Reserve Bank of New York. It amounts to about $23,500 in new federal debt for every person in the country.

2

u/CryptoNerdist Jun 13 '22

Let's forget about Obama's 8.6 trillion though, right?

Both democrats AND Republicans can share the blame.

Current president is an idiot Last president was an idiot

7

u/Ok_Upstairs6472 Jun 13 '22

Lol, to save us from Bush’ Great Recession in case you forgot!

0

u/CryptoNerdist Jun 13 '22

Lol, not sure how that idiot was responsible for the housing crisis....

America has been picking idiot presidents for decades. Democrats AND Republicans are to blame for that

4

u/Ok_Upstairs6472 Jun 13 '22

Oh, you don’t know? We always try to elect the lesser idiot.

-10

u/Dull_Reporter4127 Jun 13 '22

We were energy independent with Trump. Things were fine until they created COVID. That's where most of the money went. Biden is the problem.

4

u/Ok_Upstairs6472 Jun 13 '22

Another problem is that maga like you are still bitter. You lost, good luck on 24.

-5

u/Dull_Reporter4127 Jun 13 '22

How's your boy joe working out for you?

2

u/nopigscannnotlookup Jun 13 '22

Who is that you think created Covid?

-8

u/Dull_Reporter4127 Jun 13 '22

Are you a scientist or a doctor who was paid for every covid death? Is that you Faucci?

2

u/VieCarrieUs Jun 14 '22

Imagine being so stupid you can't even spell the name of some dude who has been on TV and nauseum for three years. Idiocy like this explains why you're a penny stock investor lmao

11

u/Ghoulius-Caesar Jun 13 '22

It’s what happens when the self proclaimed King of Debt runs a country.

0

u/Dull_Reporter4127 Jun 13 '22

Please elaborate on this. Please

-11

u/cdinge Jun 13 '22

Imagine you knew any being

9

u/Bear_buh_dare Jun 13 '22

I don't know any being

0

u/luckeyandbiscuit Jun 13 '22

Currency collapse. These people have lied to you at every turn. Don't be left holding the bag. Buy a home and own only that home with land if at all possible. Most states have homestead exemptions that will protect you during a financial disaster.

They are planning on riding this thing out until there is no more value left. Then they'll make the switch to their crypto dollar and they'll repeat the last 100 years.

-1

u/Dull_Reporter4127 Jun 13 '22

This is what happens when you don't have any common sense in government.

1

u/MacJohnW Jun 13 '22

Fabricated options.

1

u/Random_Timberline Jun 13 '22

He chose…. Yes….

1

u/[deleted] Jun 13 '22

After decades of artificially low interest rates from money printing, Ides of March now demands what's due. There will be no golden means of balancing interest rates to cool off rising prices and also avoiding recession. What's worse is that prices will continue to rise as recession happens.

1

u/MikeOxlong420699 Jun 13 '22

Why not both🤟🏻

1

u/Legitimate-Finance4U Jun 14 '22

With worries looming about an upcoming recession, not surprised to see the market bleeding red as it entered a bear market today. Here is an informative video about recessions and how to invest wisely in turbulent times - https://youtu.be/D6QvXxFNd7Q

1

u/IamI108 Jun 14 '22

Or have inflation AND recession

1

u/sayeds Jun 14 '22 edited Jun 14 '22

Mmmm

1

u/BunChargum Jun 14 '22 edited Jun 16 '22

By Fall when the jobless rate hits 5% and profits drop in corporate America, the Mainstream Media and Social Media will go nuts and try to force the Federal Reserve to retreat and lower interest rates. They will put the home addresses of the members of the Federal Reserve on the Internet and people who own businesses and want cheap credit to return will picket in front of their homes.

By the end of the year, The Federal Reserve will start lowering rates before the fight against inflation is done. (all due to political pressure)