2 ms·
Now we'll all be 3%-10% poorer, in a single year, yet I see no accountability. In fact, I see people pressuring the Fed to lower (!) rates, the tariffs don't se
by paulpauper 1y ago
Now we'll all be 3%-10% poorer, in a single year, yet I see no accountability. In fact, I see people pressuring the Fed to lower (!) rates, the tariffs don't seem to be going anywhere, and government spending and debt are at all-time highs.
This would only be true if you kept your money under a mattress. Stocks and real estate have posted strong real returns. Even risk-free interest exceeds 3%. Same for increased wages.
Stocks and home ownership are time-tested, effective hedges against loss of purchasing power.
the tariffs don't seem to be going anywhere, and government spending and debt are at all-time highs.
I agree the tariffs were a mistake, but the national debt at all time highs does not mean Americans become poorer. The fallacy of composition is to assume that the national debt is like a household debt. The national debt does not affect the ability of Americans to accumulate significant real-levels of wealth with investments and income.
- fuzzfactor 1y agoA very well-regarded assessment. Conventional wisdom may not be wise enough when times get too unconventional though :) And who knows how much is too much? There is always overwhelming unexpressed pressure before the dam breaks unexpectedly and you are worse off having stock than cash. It's critical that there be no consensus about an impending downturn, otherwise there may not be enough leverage imposed on the unexpected element of surprise for those in position to be able to weather a storm which wrecks all boats.