4 ms·
I hope all the people pedantically explaining to me in the Intel thread this morning that corporations exist to make profits realize the pathetic scope of that
by garbagecoder 3y ago
I hope all the people pedantically explaining to me in the Intel thread this morning that corporations exist to make profits realize the pathetic scope of that statement of fact.
If there is such a thing as a profit-price spiral, I hope it gets the same H-bomb Volcker treatment wage-price spirals do.
- frankreyes 3y agoInflation is here to stay.
- garbagecoder 3y agoIf you mean, you don't expect any deflation to occur anytime soon, I hope you're right. If you think >2% is permanent, then I'd like to know why. That's actually fine with me since I have a mortgage. >4% permanent is a problem for me, but I doubt that's permanent.
- frankreyes 3y ago>5% for about 5 years if Fed does everything right. In light of recent history, I'd say a couple of years more. Historically, ZIRP has been the exception and not the rule in the world of economics and finance. Peter Zeihan explains it, here time 37:30 https://youtu.be/DXtScb_IZdg https://youtu.be/DXtScb_IZdg In short: Baby Boomers are retiring, and taking their money with them, and thus with them the largest source of finance in the USA. That means the cost of capital will go up. Independently of what the Fed does, the war, china or covid. One presentation from 2018, time 18 or 19 minutes, here https://youtu.be/u0eJK4Avk2M https://youtu.be/u0eJK4Avk2M "The cost of borrowing will go by a factor of five"