/biz/ - Business & Finance

>>51626012
bullish soon

>volcker? yeah i‘ve heard of that pussy

>>51626012
Good, the harder they raise now the faster we can have a recovery.
Worst scenario is an endless bleeding.

>>51626050
Its more a sign off how fucked the corner they have backed themselves into is...

>>51626012
We're not going to have a true recovery unless they raise it to 20% like they did in the 70s

>>51626060
>an endless bleeding
God I wish that weren't me

>>51626050
>The Fed, under Paul A. Volcker, ultimately raised rates to nearly 20 percent — and sent unemployment soaring to more than 10 percent — in an effort to wrestle the price increases down.
They still have a long way to go, hopefully unemployment starts soaring soon and it won't come to that since inflation will cool down, otherwise markets are going to be screwed for the next year or two.

what does this mean for future first time home owner? im closing next week and locked in at 5.5%

Priced in.
Money is just a belief. Energy availability is a matter of survival.

>>51626131

I'm a brainlet, what does it mean to "raise interest rate"? And what is a "hike"? If hike rate 20% then does it mean my money loses 20% value? Or does everything cost 20% more to buy?

They have even less control than they did 2008 now. And back then all the people in charge were convinced that without enormous monetary stimulus the economy was headed for a depression. And now they can't even do that. Shit's fucked

Just rug it as fast as possible with a fat 1000bps hike. The sooner it happens, the sooner we get recovery

>>51626284
>Fed Chair anon announces 1000bps hike
>US government budget immediately collapses
>US economy immediately collapses
>World economy immediately collapses
>no more inflation, though
All in a day's work.

And where are the years before 1987?

>>51626199
I think it means all the houses mortgage go up unless you are fixed? Big brains help us understand

>>51626123
>5,5%

wew, kys.

>>51626337
even if it's fixed then you networth goes negative because nobody will buy your overpriced cuc.kshed

>>51626012
pic related

Because this is the first time in history that they don't have exposure in the markets, so they don't care about crashing it to the ground

>>51626050
kek

>>51626395
>Print money
>Pump equities
>Sell equities
>Get into cash
>Pump the value of cash
Pottery

>>51626012
>percent change
With rates starting so low any change would be a high percentage change. Now post the actual rate changes and it is perfectly normal.

>>51626199
To give you the simplified version, the federal funds rate is the interest rate banks can charge each other for the short term loans they are constantly taking out, to meet reserve requirements. Higher federal fund rate leads to less money being lended out, and higher interests rates for any existing variable interest loan, and new fixed interests ones. These higher rates reduce the amount of money being created, slowing inflation.

>>51626303

The day the us government goes bankrupt and all their employees get lay off would be greatest thing ever.

>>51626012
they conveniently left out the early eighties

>>51626050
KEK

>>51626012
>no easy way out

>>51626050
top tier bants

>>51626012
>Volcker era excluded

i got this gents

take a seat
take a seat

>>51626740
I will literally keep buying the dip for years if I have to

>>51626050

>>51626779
when will the counter parties collect

tick tock

>>51626779
Based lost Japanese generation

>you will take it all.
>you will be happy
>and this is only the tip

Sssshhhhhhh

>>51626803
That is more of a myth than anything and is based on, if you purchased at the top, then held and never purchased more, you would of been down for a generation. But that completely ignores that no one actually does that. Instead they buy as it goes up. Buy as it goes down. Then continue to buy more as it very slowly recovers. So they are still up. Then you add in the reinvestment of dividends and they are up even more.

>>51626447
yellin be bussin fr fr

>still below 4
2 more weeks am I right

>>51626012
>/biz/
>Hahaha the Fed is backed into a corner!
>they can't raise interest rates now or it'll crash the economy!
>number go up 4 ever! Hyperinflation here we come!!
>also /biz/
>Nooooooooooooo!!! What do you mean they're raising rates!?!

>>51626777
trips of divine aloofness

>>51626284
they will do this after mid terms

>>51626106
If Europe crashes and burns, it will help inflation in the US. Less competition for goods.

>>51626012
>further
shitty chart says otherwise
>faster than modern history
when is this "modern history?" oh when we can cherry pick data.
89 and 95 period don't look much different

>>51626326
sub 87 years aren't "modern" history, dumbass

>>51626352
>assuming i need to sell my cuckshed
>assuming i bought in the last three years
cope, rentoid

>>51626012
Unironically incredibly absolutely atomically bullish. You just have to survive the next “few” years and you will positively surely make it.

>>51626123
>Darwinism, the post.

>This is going to be a blue midterm because of abortion and student loan forgiveness!

wont matter.

The clown world money printer will continue on because it has to. It would lead to financial collapse. All the retarded techies with monkey jobs making 80k+ per year wouldn't be able to pay off their student loans, which means default and money disappearing.

It would mean a massive contraction of an elastic money supply. were talking a hundred plus years of the devaluation of the dollar....you think that ends now? Maybe temporarily, but the show goes on.

>>51626920
2 more weeks until they get to 4%
trust the plan

>>51626920
Those morons were the worst
>the fed can’t raise rates because... because they just can’t ok?

>>51629549
cope moonnigger

>>51626284
yank the band-aid Jerome

>>51629510
hoovervilles of liberal arts grad students are going to spring up on university campuses

>>51629631
That would be based but administration would never allow it. Your average campus would sooner go Kent than let their social credit score slaves skimp on tuition.

>>51629564
They're at 3.25% right now
One more 75 bps hike and we're there
What's so special about 4?

>>51626395
i've been red pilled. fuck

problem?

>>51626106
>since inflation will cool down
Sauce?

>>51626047
You are delusional. Please long the S&P

>>51629549
imagine still making this post on September 25th, 2022.

>>51626012
No choice. Covid economic policy did a number on everything. Made it way worse, or at least accelerated the problems already there.

>>51626395
This needs to be spammed everywhere.

>>51631300
Someone is certainly getting fucked in my opinion as lots of startups might run out of funds, pretty sure this is worth keeping in mind before investing.

>>51626050
If this guy actually manages to raise rates to even just 10%, I’m gonna buy bonds straight away. 10% a year is a freaking godsend. Heck, I could sell them later for a premium too once bond rates fall as I will be making a hefty profit as well.

>>51631716
I believe the rate would be raised eventually in my opinion bonds are a good but i would go for more volatile assets.

>>51631584
VCs won't stop funding if they believe in your project, the only problem is how you disburse the funds and that's where milestoneBased come in.

>>51626123

>>51626123
My brother is buying an overpriced home at high rate as well. He was severely depressed this year because he felt like he had fallen behind on life. You're both fucked desu, you'll be house poor but make the best of it I guess. Make your home extra comfy.

>>51626303
think of the cheapies

>>51626012
Haha, at least my Capital One savings account is getting more in monthly interes-
>inflation
PISSSSSSSSSSSSSSSSSSSSSSSSS

>>51626012
Sweet what does this mean for my debt maxing strategy though

>>51626395
>Charlie Lee, chairman of the Fed

>>51632899
No doubts chad. This has brought about some good entry points for assets like FIL, SYLO, HNT and DOT which I'm holding till the next market cycle.

>>51626303
So much to deal with

>>51632617
>>51632139
fuck me...I really dont want to feel like im screwing up. I could afford the mortgage but damn this sucks. I finally saved up 70k to move out of my parents place. I got the place for $280k

>>51636294
Lol
Lmao

>>51626123
don't lose your job
hopefully you bought in good neighborhood
with good school district
refinance once the fed is done raising
and starts lowering

>>51626012
>Modern history

>>51636294
renovate & rent, spend time with parents

>>51626106
>hopefully unemployment starts soaring soon
Wont happen. Covid already killed off 1 million or so in the US plus disabled some 500k- 1 million. Thats like 2 million workers removed from potential work force. Some were old and retired obviously but plenty werent.

Either way, im ready for 10%+ treasuries. Only fair for us to load up like the boomers did.

>>51638170
I dont know why more people dont talk about this. Workforce participation rate is going DOWN. Which means that everyone who wants a job basically has it at this point and companies are still desperate to fill seats. Yeah we hear about layoffs from start ups and overleveraged companies, but those people are finding new jobs the next week. The Fed is trying to force unemployment in an environment where there simply arent enough workers.

>>51638224
Correct. EVeryone keeps talking about we need rising unemployment. How would you get that in this environment? You really wont. Even if you fired people its still no where near the 1-2 million removed from covid. The layoffs are all small fry amounts too. Few thousand or so at a megacap. The fed could hike to 10% and not see a rise in unemployment. This is like after the black plague wiped out so many. Wages rose because no one was left. Its not fixed until you get a demographic replacement. Maybe 4 years of new grads entering work force.

>>51638244
Honestly I think the business class is freaking out because they now have to pay higher wages when theyve been paying peanuts since the 70s

>>51638294
Yeah thats what I think. And they dont want to be the ceo that comes out and says, look earnings are going to drop for a year or so. Thats instantly new CEO mode.

>>51626012
So is now a good time to open a savings account?

>>51638244
they're going to flood us with h1-b workers

>>51626200
Heyek? Sorry, my god is Keynes because it's easier to photocopy dollars than arrest fraudsters

>>51638170
This plus an untold number of vaxies dying. 40% increase in deaths from 2020 being reported.

>>51629484
Ah, so it's newspeak. Apparently people who were adults in the 80s have already transitioned into "ancient history" despite still being alive.

>>51626123
Means you’re going to get your peen batted around for a few years. Hope you’re living within your means and didn’t buy too much house. If you can weather the storm you should refinance when it drops.