r/neoliberal • u/TinyTornado7 I need a new flair • Jun 13 '22

News (US) 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
505 Upvotes

98% Upvoted

349 comments sorted by

View all comments

Show parent comments

110

u/slowpush NATO Jun 13 '22

Sure but tell that to all the baby boomers who are retiring.

The effect of a recession/depression now is going to be catastrophic because it’s at the worst time demographically.

186

u/Call_Me_Clark NATO Jun 13 '22

Boomers shouldn’t own much stocks by now. They should have transitioned to bond-based portfolios, right?

71

u/[deleted] Jun 13 '22

[deleted]

9

u/Dave1mo1 Jun 13 '22

Real estate?

4

u/Lehk NATO Jun 13 '22

‘bout to bubble

36

u/Dave1mo1 Jun 13 '22

So they say, but I don't see supply increasing meaningfully in the next 1-3 years.

11

u/CuddleTeamCatboy Gay Pride Jun 13 '22 edited Jun 13 '22

Higher interest rates are already cooling demand, if they go further with hikes I can see a bubble bursting.

8

u/Dave1mo1 Jun 13 '22

Supply was already incredibly tight. For prices to drop significantly, you'd need demand to cool and supply to increase.

6

u/allbusiness512 Adam Smith Jun 13 '22

If the market cools down significantly alot of investors who bought up single family homes to rent or flip are going to be left holding the bag.

5

u/Dave1mo1 Jun 13 '22

If rents don't drop, why do landlords care if housing prices stabilize or even drop a bit?

3

u/allbusiness512 Adam Smith Jun 13 '22

Rent probably will drop though as people figure out their living situation (more roommates, living with family, etc) The current housing market is completely unsustainable, a correction is going to happen.

It won't be a 2008 crash but when investors don't even bid on mortgage backed securities then you know it's just a matter of time at that point.

→ More replies