4 ms·

How is it murkier? They're going to fund bank bailouts by making other banks and US pay for it via inflation and passed on fees to those of us who don't store o

How is it murkier? They're going to fund bank bailouts by making other banks and US pay for it via inflation and passed on fees to those of us who don't store our money in financial institutions run by idiots. And they will keep raising rates because the consequence of letting inflation run even higher is a populist revolt. And the worst part is the majority of this country and the world are too stupid to realize it. Gotta slow boil that frog.

jgwil2 4y ago
Per the article, they are now expected to raise rates much more slowly than they otherwise would have.
- throw_m239339 4y ago
  "expected". At some point, the FED is going to run out of instruments to tamper with to prop up a fake economy. It's going to crash, that's inevitable. The whole narrative behind the creation of the FED was that private bankers would enact more rigorous economic policies than politicians and it would lead to more economic stability. It's clearly not the case now. The very existence of the FED will be questioned.
  - zadler 4y ago
    Eh, this is par for the course in democratic decline… same situation in Argentina for example, central bank is supposed to be independent but in reality the government controls fiscal policy. It’s true that the US has a long way to fall though.
  - theGnuMe 4y ago
    It'd be way worse without the Fed, we'd have a collapse of everything...
onlyrealcuzzo 4y ago
Until recently - wage gains were beating inflation by more than usual - obviously not everyone is affected equally. The main people who should've been fuming about inflation are retirees on defined benefit pensions.
- freitzkriesler2 4y ago
  As opposed to asset holders getting indiscrominate gains as opposed to the hourly/salary worker? OH NOES! How dare we let workers benefit from increased wages while we let those poor boomers laze around in retirement. God forbid they can't take a 4th cruise this year. Lol, lmao even.
- scythe 4y ago
  >wage gains were beating inflation Nitpick: the real value of wages paid has been declining since 2020. Individual real wages increased because of workforce composition effects, but you can't run an economy on workforce composition effects. https://www.dallasfed.org/research/economics/2022/0215 https://www.dallasfed.org/research/economics/2022/0215
dboreham 4y ago
> fund bank bailouts So far no bank has been bailed out. e.g. SVB had assets to cover deposit liabilities (just not in a liquid form).
- the_third_wave 4y ago
  ...New York-based Signature Bank, which collapsed over the weekend and will be bailed out by the new Bank Term Funding Program (BTFP), the Biden administration announced on Sunday.... [1] Either Daily Caller is calling it incorrectly or at least one bank is being bailed out as of now. All comes down to the definition of 'bailing out', does it mean that depositors are made whole past the $250K limit, that investors are being made whole, that banks are simply taken over with their losses covered by the government which hopes to recoup the costs when the banks are sold on the market? [1] https://dailycaller.com/2023/03/13/former-dem-rep-landmark-financial-reform-law-board-ny-bank-biden-bailing-out/ https://dailycaller.com/2023/03/13/former-dem-rep-landmark-f...
- freitzkriesler2 4y ago
  The problem was their assets are going to pay out over at least a decade. If they wanted to redeem them "now" then those assets would have been sold on the open market below the par value. The fed is stepping in as the buyer of last resort and offering what is essentially QE in all but name again to buy those bonds/MBS at their par value. Releasing that cash out into the wider economy when it was initially locked up in loans increasing inflation which is a tax on all of us. It very much is a bailout and everyone who uses the dollar is paying for it.
  - starkd 4y ago
    But this is a narrow interest so that depositors at least have access to their money. It does not reward the bank. So long as the bank isn't rewarded, it should be a caution flag for the other banks to take risk management more seriously. Startups have to also have to get their burn rate under control or go out of business.
    - 4y ago
starkd 4y ago
Letting inflation run even higher risks a populist revolt? Inflation hurts everyone. It is particularly cruel to the poor and middle class, but business also suffers because it is an unpredictable business climate. Are you actually suggesting higher inflation would be the smart strategy if not for the pesky mob?
- nerdponx 4y ago
  "Big" business doesn't suffer, smaller businesses do. And from the perspective of legislation and regulation, smaller businesses tend to get the same shit treatment and regular people. If you believe the arguments of Matt Stoller, the current round of inflation isn't actually inflation, it's just coordinated price increases and corresponding profit increases by the biggest corporations. Definitionally, it's not inflation if wages aren't keeping up with consumer prices.

jgwil2 4y ago

Per the article, they are now expected to raise rates much more slowly than they otherwise would have.

throw_m239339 4y ago
"expected". At some point, the FED is going to run out of instruments to tamper with to prop up a fake economy. It's going to crash, that's inevitable. The whole narrative behind the creation of the FED was that private bankers would enact more rigorous economic policies than politicians and it would lead to more economic stability. It's clearly not the case now. The very existence of the FED will be questioned.
- zadler 4y ago
  Eh, this is par for the course in democratic decline… same situation in Argentina for example, central bank is supposed to be independent but in reality the government controls fiscal policy. It’s true that the US has a long way to fall though.
- theGnuMe 4y ago
  It'd be way worse without the Fed, we'd have a collapse of everything...

onlyrealcuzzo 4y ago

Until recently - wage gains were beating inflation by more than usual - obviously not everyone is affected equally. The main people who should've been fuming about inflation are retirees on defined benefit pensions.

freitzkriesler2 4y ago
As opposed to asset holders getting indiscrominate gains as opposed to the hourly/salary worker? OH NOES! How dare we let workers benefit from increased wages while we let those poor boomers laze around in retirement. God forbid they can't take a 4th cruise this year. Lol, lmao even.
scythe 4y ago
>wage gains were beating inflation Nitpick: the real value of wages paid has been declining since 2020. Individual real wages increased because of workforce composition effects, but you can't run an economy on workforce composition effects. https://www.dallasfed.org/research/economics/2022/0215 https://www.dallasfed.org/research/economics/2022/0215

dboreham 4y ago

> fund bank bailouts So far no bank has been bailed out. e.g. SVB had assets to cover deposit liabilities (just not in a liquid form).

the_third_wave 4y ago
...New York-based Signature Bank, which collapsed over the weekend and will be bailed out by the new Bank Term Funding Program (BTFP), the Biden administration announced on Sunday.... [1] Either Daily Caller is calling it incorrectly or at least one bank is being bailed out as of now. All comes down to the definition of 'bailing out', does it mean that depositors are made whole past the $250K limit, that investors are being made whole, that banks are simply taken over with their losses covered by the government which hopes to recoup the costs when the banks are sold on the market? [1] https://dailycaller.com/2023/03/13/former-dem-rep-landmark-financial-reform-law-board-ny-bank-biden-bailing-out/ https://dailycaller.com/2023/03/13/former-dem-rep-landmark-f...
freitzkriesler2 4y ago
The problem was their assets are going to pay out over at least a decade. If they wanted to redeem them "now" then those assets would have been sold on the open market below the par value. The fed is stepping in as the buyer of last resort and offering what is essentially QE in all but name again to buy those bonds/MBS at their par value. Releasing that cash out into the wider economy when it was initially locked up in loans increasing inflation which is a tax on all of us. It very much is a bailout and everyone who uses the dollar is paying for it.
- starkd 4y ago
  But this is a narrow interest so that depositors at least have access to their money. It does not reward the bank. So long as the bank isn't rewarded, it should be a caution flag for the other banks to take risk management more seriously. Startups have to also have to get their burn rate under control or go out of business.
  - 4y ago

starkd 4y ago

Letting inflation run even higher risks a populist revolt? Inflation hurts everyone. It is particularly cruel to the poor and middle class, but business also suffers because it is an unpredictable business climate. Are you actually suggesting higher inflation would be the smart strategy if not for the pesky mob?

nerdponx 4y ago
"Big" business doesn't suffer, smaller businesses do. And from the perspective of legislation and regulation, smaller businesses tend to get the same shit treatment and regular people. If you believe the arguments of Matt Stoller, the current round of inflation isn't actually inflation, it's just coordinated price increases and corresponding profit increases by the biggest corporations. Definitionally, it's not inflation if wages aren't keeping up with consumer prices.