6 ms·

Not just Powell, every Fed kept talking about "we don't want to repeat history". What they meant is 1970-1979, when they were beating down the economy for a dec

by kika 4y ago

Not just Powell, every Fed kept talking about "we don't want to repeat history". What they meant is 1970-1979, when they were beating down the economy for a decade and when they decided to let the pressure go, inflation went right back where it was before the beating. Because the wages were still up and with the power of the unions it was very difficult to bring them down. At least that's how it was explained to me by a stock market expert. So until we give up our fat checks from FAANG they will keep beating FAANG down. I dunno, fuck them maybe? But the same expert told me many times: do not play against the Fed.

dmix 4y ago
The top end company stock prices are just like real estate, the money experts always use them to reduce the entire economy to simple terms and over-generalize. If our only two options are the Fed or FAANG winning I choose neither. The macro market (and their truthsayers) are obsessed with reducing things to the [current price] of public companies. Even though there is never ending increasing disconnect between their stock prices and the long term value they generate for the broader markets. The more we gamble on those small sets of metrics being the "truth" from which to guide society the more we (see: gov and media) will adapt to protect and push them higher.
- ClumsyPilot 4y ago
  > The top end company stock prices are just like real estate, the money experts Anyone celebrating expensive real estate is celebrating destruction of our economy. Real estate is an economic input, same as food and fuel. When those get expensive, it is understood that it will lead to widespread misery and poverty. The people that make money off sitting on real contribute nothong, they should be treated the same way. assomeone who'd make money from hoarding canned tuna.
roncesvalles 4y ago
That implies there's some unspoken understanding among CFOs that the Fed won't ease up until tech salaries go down, and that requires layoffs.
- kika 4y ago
  If I have to bet whether this understanding exists or not, I'd bet on exists.

by kika 4y ago

dmix 4y ago

The top end company stock prices are just like real estate, the money experts always use them to reduce the entire economy to simple terms and over-generalize. If our only two options are the Fed or FAANG winning I choose neither. The macro market (and their truthsayers) are obsessed with reducing things to the [current price] of public companies. Even though there is never ending increasing disconnect between their stock prices and the long term value they generate for the broader markets. The more we gamble on those small sets of metrics being the "truth" from which to guide society the more we (see: gov and media) will adapt to protect and push them higher.

ClumsyPilot 4y ago
> The top end company stock prices are just like real estate, the money experts Anyone celebrating expensive real estate is celebrating destruction of our economy. Real estate is an economic input, same as food and fuel. When those get expensive, it is understood that it will lead to widespread misery and poverty. The people that make money off sitting on real contribute nothong, they should be treated the same way. assomeone who'd make money from hoarding canned tuna.

roncesvalles 4y ago

That implies there's some unspoken understanding among CFOs that the Fed won't ease up until tech salaries go down, and that requires layoffs.

kika 4y ago
If I have to bet whether this understanding exists or not, I'd bet on exists.