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The Fed may possibly be more powerful than the Federal government during peacetime. Almost every problem in our economy can be traced back to Fed meddling. Misi
by newaccount2021 5y ago
The Fed may possibly be more powerful than the Federal government during peacetime. Almost every problem in our economy can be traced back to Fed meddling. Misinvestment, malinvestment, inflation, moral hazard...the list goes on and on. The Fed truly does reward its clients...the growth in hyper-wealth has created a whole new class of ultra-rich while most toil away with no gain in real wages, left to rent their lives as assets climb to the stratosphere thanks to the Fed.
Contrarians on HN love to argue that there is no inflation. I bought our current house three years ago. According to Zillow and comparable sales, it has TRIPLED in value since 2018. If you don't think there is inflation....
- Dylan16807 5y agoInflation isn't measured in house prices. If you even tried to make that a major factor, you'd get ridiculously different measures of inflation in different cities.
- readthenotes1 5y agoInflation used to include house prices until the 1980s where they wanted to quell inflation. An easy way to do it was to change the definition. Now, it includes something called owner equivalent rent, to include both rent and owning a house. The intent is to include a house prices in inflation indirectly.
- readthenotes1 5y agoAs a recent measure, https://calculatedrisk.substack.com/p/measuring-rents https://calculatedrisk.substack.com/p/measuring-rents
- joe_the_user 5y agoEconomists do talk about asset inflation [1]. The Fed and the media not so much. The price of housing is very much a symptom of asset inflation and this is plausibly the result of the Fed continually injecting money into and/or "backstopping" various capital markets. [1] https://en.wikipedia.org/wiki/Asset_price_inflation https://en.wikipedia.org/wiki/Asset_price_inflation
- Dylan16807 5y agoAssets matter, but are any other physical assets going up the same way?