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> An empty shelf of baby formulas Can I ask you why you've chosen this particular example? It is not about I agree with you, or I'm going to contradict in a so

by ordu 4y ago

> An empty shelf of baby formulas Can I ask you why you've chosen this particular example? It is not about I agree with you, or I'm going to contradict in a some way, it is completely unrelated question. A complete off-topic.

liuliu 4y ago
The cause of this round is not some sudden bubble burst. Fed raise rates because they want to signal that they are serious about taming the inflation. That caused sharp sentiment change in capital market. The cause of this round of inflation can be many things, we've been in low-interest environment for 10+ years with occasional QEs. It hasn't inflated the economy as much as we hoped for that 10+ years. It is lazy thinking to attribute back to QE for this round of inflation.
shortstuffsushi 4y ago
I believe the example was likely chosen due to the recent controversial bill in congress [0]. However, I think the choice of baby formula shows that some "core" needs in the economy are missing as well, and that the tech bubble struggling. 0: https://www.bloomberg.com/news/articles/2022-05-19/house-passes-fda-baby-formula-bill-but-senate-fate-is-uncertain https://www.bloomberg.com/news/articles/2022-05-19/house-pas... (Picked at random from a search for "baby formula bill")
- lotsofpulp 4y ago
  The baby formula shortage is specifically related to one company’s production being shut down, supposedly due to their negligence in maintaining quality in conjunction with policies specific to baby formula that prevent supplies from abroad to come in to fill the void. It seems like a very poor example to refer to when talking about the broad economy’s needs and completely unrelated to a tech bubble.
  - shortstuffsushi 4y ago
    Sorry, I guess I should have expounded a bit more - I think the example was chosen because of both cultural relevance [0] and because it is something that is a "core" element - I didn't necessarily mean to comment on whether it was an accurate representation of the state of things. I would tend to agree that one "industry's" quality and policy related failings are not a sign of wider economic failure, although I think another commenter had it right with "covid hangover." There's a lingering supply/demand mismatch in seemingly all consumer markets that seems in large part due to problems that were started or brought to a head during covid.

by ordu 4y ago

liuliu 4y ago

The cause of this round is not some sudden bubble burst. Fed raise rates because they want to signal that they are serious about taming the inflation. That caused sharp sentiment change in capital market. The cause of this round of inflation can be many things, we've been in low-interest environment for 10+ years with occasional QEs. It hasn't inflated the economy as much as we hoped for that 10+ years. It is lazy thinking to attribute back to QE for this round of inflation.

shortstuffsushi 4y ago

I believe the example was likely chosen due to the recent controversial bill in congress [0]. However, I think the choice of baby formula shows that some "core" needs in the economy are missing as well, and that the tech bubble struggling. 0: https://www.bloomberg.com/news/articles/2022-05-19/house-passes-fda-baby-formula-bill-but-senate-fate-is-uncertain https://www.bloomberg.com/news/articles/2022-05-19/house-pas... (Picked at random from a search for "baby formula bill")

lotsofpulp 4y ago
The baby formula shortage is specifically related to one company’s production being shut down, supposedly due to their negligence in maintaining quality in conjunction with policies specific to baby formula that prevent supplies from abroad to come in to fill the void. It seems like a very poor example to refer to when talking about the broad economy’s needs and completely unrelated to a tech bubble.
- shortstuffsushi 4y ago
  Sorry, I guess I should have expounded a bit more - I think the example was chosen because of both cultural relevance [0] and because it is something that is a "core" element - I didn't necessarily mean to comment on whether it was an accurate representation of the state of things. I would tend to agree that one "industry's" quality and policy related failings are not a sign of wider economic failure, although I think another commenter had it right with "covid hangover." There's a lingering supply/demand mismatch in seemingly all consumer markets that seems in large part due to problems that were started or brought to a head during covid.