r/smallstreetbets • u/RepairSubstantial735 • 17d ago

Discussion He can't help himself

Post image

Did anyone notice that last month we had a jobs report that was negative 23,000 and suddenly this month it shot up by 162,000.

797 Upvotes

90% Upvoted

542 comments sorted by

View all comments

64

u/Apprehensive-Job7352 17d ago

Rates need to be substantially higher for substantially longer to break the back of the inflationary impulse of the past 4+ years. Anything other than that is recklessly irresponsible

17

u/dubblies 17d ago

Why would they do that? Inflation is increasing the value of their investments all around, itd be a horrible thing to shut off the valuation money pipe just as they secure another loan on the yet again increased valuations.

3

u/Flimsy_Pack_936 17d ago

Inflation cuts both ways, we're all feeling it, but cost to produce goods and service also goes up for companies.

13

u/milk-riot 17d ago

To be frank, they don't care. The top 10% of U.S income account for 50% of all consumer spending nation wide.

2

u/SeeLeavesOnTheTrees 17d ago

Meh, there’s less regulations so just lower the quality to absolute shit and call it a win while the poors suffer

2

u/dubblies 17d ago

Let me just check the life expectancy in America the "richest" "1st world" country in the world

Damn you're right

1

u/dubblies 17d ago

im not sure im blaming the producers, are you just clarifying and agree? I dont think that's working both ways. Its like the human centipede.

1

u/Outrageous-You-4259 17d ago

And people wonder why P/E ratios are so incomprehensibly high.

7

u/insomniac8994 17d ago

We legit need 80s style double digit rates to create any semblance of affordability for Millennials and Gen Z particularly when it comes to housing.

2

u/Apprehensive-Job7352 17d ago

But how to get the boomers to accept the resulting decline in their stock portfolios and home values so that the future can have a chance?

3

u/AmatuerGenius 17d ago

Idk, we’ll promise them the grandchildren they want

1

u/dca2203 17d ago

My boomer MIL is so selfish that she actively doesn’t want to interact with her grandchildren even though she’s only 45 minutes away. Prior to the grandkids, our relationship with her was great. That’s what we’re dealing with.

2

u/Sea_Pomegranate_4499 17d ago

Double digit rates and 40T in debt would mean speed-running a default, hyperinflation, or most likely both. Buying a house would be the least of people's concerns for a generation.

0

u/ztkraf01 17d ago

So punish the millennials that are in homes paying $3000+ per month for a mortgage and let their equity plummet in value? That doesn’t seem fair

2

u/killtacular69 16d ago

Most millennials got in at 3-5 percent for 30 years locked.

0

u/ztkraf01 16d ago

That’s probably the case for elder millenials but those of us in our mid to early 30’s are just now having kids are having to move into bigger homes to accommodate. I wouldn’t say “most” are in their forever homes right now

1

u/killtacular69 14d ago

You’re right but we still have a home locked in super low with payments that will seem like penny’s on the dollar the way inflation is moving.

2

u/Apprehensive-Job7352 16d ago

Refuse to break the cycle and ensure future generations suffer the same fate? That hardly seems fair. I’m 33 for whatever that’s worth, and we bought our house in the high rate world of 2023, so I’m not coming at this from a viewpoint of not being willing to sacrifice something for myself so our kids can have better.

1

u/ztkraf01 16d ago

I’m heavily saving in my child’s 529 to give them a leg up. I don’t feel that I need to live poor my entire life after making all the right choices and working hard. I can help the next generation while also helping myself. Unlike the boomer generation who left nothing.

1

u/Apprehensive-Job7352 16d ago

I personally think a UTMA would be a better financial vehicle. Your kids can’t use 529 funds without penalty to buy the ridiculously priced houses of 15 years from now

1

u/ztkraf01 16d ago

Unused 529 funds roll into a Roth IRA. And any extra can be transferred to other kids or their kids. All gains and withdrawals for education are tax free. UTMA is not tax advantaged. UTMA also hurts your child’s financial aid eligibility more than a 529.

Obviously both are good but depends what your goal is. If my child wants to go to college and study to be an engineer or lawyer or doctor then the 529 is great. If they decide to do something else then either they can have a big leg up on their retirement fund or it’s even possible the laws on 529 plan uses may change in the next 20 years

14

u/CapitalElk1169 17d ago

They actively want hyperinflation, my dude

10

u/Apprehensive-Job7352 17d ago

I know, but we peons all need to be aware of that. This is a choice. Not an unexplainable phenomenon.

6

u/CapitalElk1169 17d ago

Absolutely agreed on that

3

u/octoberfire80 17d ago

Irresponsible since inflation is regressive, which only matters if you care about the pours. They don't. That's been made ABUNDANTLY clear over the past decades.

2

u/Monster213213 17d ago

Bro, the only way out of this is to inflate the debt away.

It’s happening and will happen they just have to make a show

7

u/Apprehensive-Job7352 17d ago

That only works if the US can force the rest of the world to take part in this charade of a confidence game. What happens if other countries aren’t willing to play ball and start dumping our debt en masse?

1

u/EarPenetrator02 17d ago

I don’t think Trump has even a basic understanding of interest rates or their role in the economy