Biggest crash in stock market history?

And yet people still use the term “in this economy” as if we’re in the Great Depression, even when unemployment is at all time low as well… I don’t get it. it’s as if people are told it’s a bad economy and they think it actually is despite the numbers
 
1TrackMind said:
And yet people still use the term “in this economy” as if we’re in the Great Depression, even when unemployment is at all time low as well… I don’t get it. it’s as if people are told it’s a bad economy and they think it actually is despite the numbers
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Pretty shitty these days if you own a bicycle shop. It's all about perspective. At least my retirement fund is doing well.
 
1TrackMind said:
And yet people still use the term “in this economy” as if we’re in the Great Depression, even when unemployment is at all time low as well… I don’t get it. it’s as if people are told it’s a bad economy and they think it actually is despite the numbers
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If it fits anyones political narrative……… damn the facts and data, eggheads!
 
1TrackMind said:
it’s as if people are told it’s a bad economy and they think it actually is despite the numbers
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That's exactly right! Economists have a saying that goes something like, "if you want a recession, you'll get one." Japan had decades of poor growth, primarily because people hid money under their mattress instead of spending it. Few external factors, it was primarily an emotional issue.
 
1TrackMind said:
And yet people still use the term “in this economy” as if we’re in the Great Depression, even when unemployment is at all time low as well… I don’t get it. it’s as if people are told it’s a bad economy and they think it actually is despite the numbers
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I think the cost of things is what makes it a bad economy. Piices of everything inflated but wages no where near keeping up.
 
Since May, wage growth has been beating inflation. The prices are high because people people keep buying crap, consumer spending is still high, holiday spending dwarfed expectations. it really is pretty good times in the USA, it’s the healthiest economy going.
 
1TrackMind said:
Since May, wage growth has been beating inflation. The prices are high because people people keep buying crap, consumer spending is still high, holiday spending dwarfed expectations. it really is pretty good times in the USA, it’s the healthiest economy going.
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So you’re telling me that your house jumping in value probably in the area of 30 through 50%from 2020 to now that your wages followed?
 
Dave Taylor said:
So you’re telling me that your house jumping in value probably in the area of 30 through 50%from 2020 to now that your wages followed?
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You’re kinda cherry picking one portion of the economy. A big portion, but still, only one.
 
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This chart from the St.Louis Federal Reserve is needed context for this discussion. Yes, your wages are higher than in the past. Yes, your house is (not worth more) priced higher than when you bought it. But how much higher?

The Federal Reserve has flooded the economy with dollars. Like 5x the supply from year 2000. Is your salary or home priced 5x from year 2000?

The federal government has 34 trillion in debt with no way to ever pay it down, much less pay it off. It needs to borrow just to pay the interest. This with a congress that can't even pass one appropriation bill!

Inflation is always and everywhere a monetary phenomenon. The massive money printing from the 2008 market crash and the COVID-19 shutdown increased the money supply enormously. We have a fiat currency. Its value is determined by supply and demand. The supply increase means money is not as scarce, and is worth less. The value of money is manipulated by the federal reserve.

Here's a simple thought experiment: You lend me a 36" long yardstick. I return to you a 34" long yardstick. Or maybe two 16" yardsticks. The inches are smaller than the inches on the yardstick you loaned me. We have a problem because from your view, an inch is fixed and constant. And so it is with dollars.

I wish I knew how to position myself for the inevitable. Germany post WW1 was in a similar situation and decided to inflate away its debt. The alternative is default.
 
I’m in hunterdon, not sure we saw that kind of sustained value increase in our home price, and yes, our household income has matched the home price increase. Many people leveraged the labor demands to level up and certainly jumped their income by 30% over the last 3 years…, but I get your point, I wouldnt want to be trying to get my first house right now, but that’s just one sector, and everyone will be crying if their house drops in value.
 
My tax assessment in Md just went from $377k in dec 21 to $568k dec 23. You telling my my wages increased 57% to cover the increase in taxes and increased home owner’s? Comcast just jumped everyone’s bill like 50%. New loaded f150 pickup $85k. Big bag of Doritos $6. How much does your dealership charge per hour? Probably $200. Have you had a quote from a tradesman to do repairs on anything. The rates are insane. Not because they are making mor money but because it costs them that much mor to do he same job.
 
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