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That's the chart of top 1% vs bottom 90%: https://fred.stlouisfed.org/graph/?g=G4YR https://fred.stlouisfed.org/graph/?g=G4YR
by akomtu 3y ago
That's the chart of top 1% vs bottom 90%:
https://fred.stlouisfed.org/graph/?g=G4YR https://fred.stlouisfed.org/graph/?g=G4YR
- judge2020 3y agoI do think the Fed's stunt with 2-3% interest rates in 2020-2022 was an effort to further concentrate wealth up the stack. Everyone who could buy/refinance did and will likely stop moving for the foreseeable future, as the same house would cost at least 33% more per month thanks to the higher interest rate alone.
- throwawaymaths 3y agoIncreasing interest rates should have the reverse effect. A lot of crazy financial instruments depend on low interest rates to work. When interest is increased, the price of money goes up; the wealthy are bouyed far more by ZIRP than someone say in the tenderloin, who does not have access to high finance.
- tomfunk 3y agowhat financial instruments?
- hammock 3y agoAny kind of carry trade, anything with leverage, even alternatives like crypto
- throwawaymaths 3y agoShorts, options
- judge2020 3y agoIncreasing rates is their attempts to bring inflation back to normal, since cheap money is cheap for _everyone_, including all Americans that were eager to get a low monthly payment on cars/houses (as I’ve alluded to), not just for existing collateral but for new homes/cars, thus increasing total demand - and that demand leading to price increases across the board.
- throwawaymaths 3y ago> Americans that were eager to get a low monthly payment on cars/house You're still describing relatively rich people. Those price increases really hit everyone else hard. Moreover those loans are small fry compared to leveraged investment.
- wolverine876 3y agoIs there evidence?
- landemva 3y ago> Fed's stunt with 2-3% interest rates in 2020-2022 Really? Fed funds rate was about 2.5% in 2019, because Fed raised rates when Trump took office. Fed funds rate scraped zero in 2020 and 2021. https://fred.stlouisfed.org/series/fedfunds https://fred.stlouisfed.org/series/fedfunds
- sgerenser 3y agoYeah, I assume the 2-3% rates is referring to mortgage rates, which isn’t directly caused by the fed but was certainly influenced by the fed setting short-term rates at 0.
- alberth 3y agoThis can be explained by the 1st graph in link below. https://www.pewresearch.org/short-reads/2022/04/20/how-the-american-middle-class-has-changed-in-the-past-five-decades/ https://www.pewresearch.org/short-reads/2022/04/20/how-the-a... Essentially, more people (as a %) are upper income today than ever.