Stock Market… this isn’t good IMO

[TANSTAAFL]

Eh, i mean.....i'm not sure anymore. there is a real possibility that the government has straight up been paying the bills in one way or another for these businesses for DECADES.
they should have all failed in the early 2000's but we know what happened.

we just thought "too big to fail" was to prevent economic disaster. not to push cultural propaganda. but that's why they were "too big". a deal was struck.

"we'll bail you out, but you have to accept globohomo as your Lord and Savior"

and they did.

Interesting point, however here is another way to look at corporations. They are an instrument to collect taxes from workers through tax withholdings. Ever wonder how a company like FaceBook or Twitter can get a way with not paying taxes? Have the worker pay 'em. Our tax code is garbage. National Sales Tax or Flat Tax would be far superior. If people really truly knew how much they pay in taxes they would vote much better. Also the market would be less immune from the meddling of politicians.

 

[joegrizzy]

Interesting point, however here is another way to look at corporations. They are an instrument to collect taxes from workers through tax withholdings. Ever wonder how a company like FaceBook or Twitter can get a way with not paying taxes? Have the worker pay 'em. Our tax code is garbage. National Sales Tax or Flat Tax would be far superior. If people really truly knew how much they pay in taxes they would vote much better. Also the market would be less immune from the meddling of politicians.

the whole "corporations are people" thing is such an incredible flaw. these people would be in jail then....but you can't put a whole company in jail can you?

they lie, cheat, steal, kill, pollute, and worst of all they are subsidized where most don't turn a profit and those that do only do so by exploiting cheap slave labor.

 

[SlugSlinger]

Fed increased rates .75. Biggest increase since 1994.

The Federal Reserve on Wednesday intensified its drive to tame high inflation by raising its key interest rate by three-quarters of a point — its largest hike in nearly three decades — and signaling more large rate increases to come that would raise the risk of another recession.

The move the Fed announced after its latest policy meeting will increase its benchmark short-term rate, which affects many consumer and business loans, to a range of 1.5% to 1.75%.

The central bank is ramping up its drive to tighten credit and slow growth with inflation having reached a four-decade high of 8.6%, spreading to more areas of the economy and showing no sign of slowing. Americans are also starting to expect high inflation to last longer than they had before. This sentiment could embed an inflationary psychology in the economy that would make it harder to bring inflation back to the Fed’s 2% target.

The Fed’s three-quarter-point rate increase exceeds the half-point hike that Chair Jerome Powell had previously suggested was likely to be announced this week. The Fed’s decision to impose a rate hike as large as it did Wednesday was an acknowledgment that it's struggling to curb the pace and persistence of inflation, which has been worsened by Russia’s war against Ukraine and its effects on energy prices.

Borrowing costs have already risen sharply across much of the U.S. economy in response to the Fed’s moves, with the average 30-year fixed mortgage rate topping 6%, its highest level since before the 2008 financial crisis, up from just 3% at the start of the year. The yield on the 2-year Treasury note, a benchmark for corporate borrowing, has jumped to 3.3%, its highest level since 2007.

Even if a recession can be avoided, economists say it’s almost inevitable that the Fed will have to inflict some pain — most likely in the form of higher unemployment — as the price of defeating chronically high inflation.

Inflation has shot to the top of voter concerns in the months before Congress’ midterm elections, souring the public’s view of the economy, weakening President Joe Biden’s approval ratings and raising the likelihood of Democratic losses in November. Biden has sought to show he recognizes the pain that inflation is causing American households but has struggled to find policy actions that might make a real difference. The president has stressed his belief that the power to curb inflation rests mainly with the Fed.

Yet the Fed’s rate hikes are blunt tools for trying to lower inflation while also sustaining growth. Shortages of oil, gasoline and food are propelling inflation. The Fed isn’t ideally suited to address many of the roots of inflation, which involve Russia’s invasion of Ukraine, still-clogged global supply chains, labor shortages and surging demand for services from airline tickets to restaurant meals.

Expectations for larger Fed hikes have sent a range of interest rates to their highest points in years. The yield on the 2-year Treasury note, a benchmark for corporate bonds, has reached 3.3%, its highest level since 2007. The 10-year Treasury yield, which directly affects mortgage rates, has hit 3.4%, up nearly a half-point since last week and the highest level since 2011.

Investments around the world, from bonds to bitcoin, have tumbled in recent months on fears surrounding high inflation and the prospect that the Fed’s aggressive drive to control it will cause a recession. Even if the Fed manages the delicate trick of curbing inflation without causing a recession, higher rates will nevertheless inflict pressure on stock prices. The S&P 500 has already sunk more than 20% this year, meeting the definition of a bear market.

Other central banks around the world are also acting swiftly to try to quell surging inflation, even with their nations at greater risk of recession than the U.S. The European Central Bank is expected to raise rates by a quarter-point in July, its first increase in 11 years. It could announce a larger hike in September if record-high levels of inflation persist. On Wednesday, the ECB vowed to create a market backstop that could buffer member countries against financial turmoil of the kind that erupted during a debt crisis more than a decade ago.

The Bank of England has raised rates four times since December to a 13-year high, despite predictions that economic growth will be unchanged in the second quarter. The BOE will hold an interest rate meeting on Thursday.

The 19 European Union countries that use the euro currency endured record inflation of 8.1% last month. The United Kingdom notched a 40-year high of 9% in April. Though debt service costs remain contained for now, rising borrowing costs for indebted governments threatened the eurozone with a breakup in the early part of the last decade.

Last week, the World Bank warned of the threat of “stagflation” — slow growth accompanied by high inflation — around the world.

A key reason why a recession is now likelier is that economists increasingly believe that for the Fed to slow inflation to its 2% target, it will need to sharply reduce consumer spending, wage gains and economic growth. Ultimately, the unemployment rate will almost certainly have to rise — something the Fed hasn’t yet forecast but could in updated economic projections it will issue Wednesday.

Read Newsmax: Fed Raises Key Rate 0.75 Percent, Largest Hike Since 1994 | Newsmax.com
Important: Find Your Real Retirement Date in Minutes! More Info Here

 

[Fredkrueger100]

What the heck are y’all talking about?? This sounds like another language. lol. All I know is my 401k and profit sharing are sucking right now. I’m sure it will get worse. I don’t worry about it though as I’m on the work till your dead plan.

 

[ttown]

Run forest,Run. . Crap no one knows the future,they just promote their point of view. IMO

If I was mid 70s I’d be 80% in cash if I had a 6 figure saving, of course I may live to be 100 SOB,

Thats sad….

 

[SlugSlinger]

What the heck are y’all talking about?? This sounds like another language. lol. All I know is my 401k and profit sharing are sucking right now. I’m sure it will get worse. I don’t worry about it though as I’m on the work till your dead plan.

It means the pain is coming! Markets will be up before the reality sets in and it tanks! It didn’t take long. See the spike at the announcement, then immediately started dropping again.

So here's what has and is going to happen. buydun has publicly stated multiple times that he has turned over the handling of inflation to the Fed. When the Fed kills the economy by raising rates, buydun will blame the Fed for raising rates and killing the economy. There is no way to stop inflation without keeping people from buying stuff. You stop people from buying stuff by making it too expensive to borrow money and keeping people from earning money (this is done with massive layoffs).

Buckle up, it's going to get bumpy!

 

[turkeyrun]

I am 65 and PLANNING on retirement by end of year.

Full retirement age is about a year away.

May end up having to work well past that, if I can. Looks like I am pretty well screwed, whatever happens.

I was lucky and cashed out about 70%, before the '08 crash. Paid cash for land and cattle. Debt free. Lost a chunk on the crash. Lost another on Wells Fargo thieving.

Now, Company 401(k) is unobtainable, unless I retire.

If all else fails, I will have a tent in the pasture and eat T-bones.

 

[TANSTAAFL]

What the heck are y’all talking about?? This sounds like another language. lol. All I know is my 401k and profit sharing are sucking right now. I’m sure it will get worse. I don’t worry about it though as I’m on the work till your dead plan.

Bottom line, this is the reason the Rich will get richer and the poor will get poorer. Real Estate in many areas will go down, with less people able to buy because of the high cost of borrowing. If your in the stock market and don't need the money, stay in it, else you lock into all those losses, if you have cash and have the luxury of buying, may be a good time to buy but has the market hit bottom? Bitcoin, gold and silver are anyone's guess at this point, however may still be a good time to buy, I prefer metals to bitcoin. By staying in it expect a crappy market for 2 to three years. If the pres or another democrat is re-elected expect much longer. There is a perfect storm of bad leadership and idiots in charge. This is my take, not a get rich philosophy and free advice. What's free advice worth? Not much., after all it's free.

 

[Fredkrueger100]

On another note, SSM Health here in Shawnee is fixing to do a big layoff. My wife is supposed to find out next week who is being laid off. Those money hungry scum bags. Like they ain’t making enough.

 

[CoronaBorealis]

Bottom line, this is the reason the Rich will get richer and the poor will get poorer. Real Estate in many areas will go down, with less people able to buy

Real estate is already at astronomical levels. Going down just means it may return closer to normal.

That’s the whole point of raising interest rates though. Easy money creates massive demand in excess of supply, so prices skyrocket. If the cost of borrowing goes up, people aren’t as willing to do so. Demand goes down, bringing prices down as well.