xapata

60 ms·

631.
by xapata 5y ago
Yes, but if inflation also pushes up asset prices, you might have been better off investing in the stock market.
632.
by xapata 5y ago
Sorta. They're a hedge against low real returns in the stock market, which is slightly different than inflation by itself.
633.
by xapata 5y ago
They're probably buying on credit, so their purchase price doesn't really change if rising interest rates are the cause of the price drop.
634.
by xapata 5y ago
Government inflation statistics do report that wages have inflated more slowly than a consumption basket since the 70s, on average. If you want to talk about consumer price inflation as distinct from wage inflation, do so, but be specific.
635.
by xapata 5y ago
That's been true since the 70s, but it's not an intrinsic feature of inflation. In fact, this time it may be different, and that's what all the CEOs are complaining about.
636.
by xapata 5y ago
You'd not be able to label anything as non-fiction, unless it were from the mouth of Cthulu. No matter how dryly something is presented, the reader should still be skeptical.
637.
by xapata 5y ago
You're using an ambiguous pronoun reference. Who's picking the fight? I don't think it was so obvious that war would be the consequence. If I'm a tea smuggler beating the competition by avoiding taxes and my competitor
638.
by xapata 5y ago
Wages are part of inflation. That's why the same CEO's complaining about inflation are complaining that they "can't" hire staff.
639.
by xapata 5y ago
No, inflation is more like the weight gain of a child growing to an adult. The metaphor breaks down at adulthood. > An increase in the cost of living is generally never a "good" thing. Inflation is only an increase in nominal,
640.
by xapata 5y ago
Saving is investing only from the accounting perspective. In finance and economics we also care about how capital is invested, not merely that it is invested. What argument would you find compelling?
641.
by xapata 5y ago
You're right in general; Gladwell is often wrong, but that's actually a pretty good take on the Boston Tea Party.
642.
by xapata 5y ago
The _Economist_ was founded to provide a particular point of view. You should always consider the speaker's biases. It doesn't mean they're wrong.
643.
by xapata 5y ago
Humans require fewer examples to learn language rules. It's not clear that humans use the same learning model a "deep net."
644.
by xapata 5y ago
In a democratic society, people have a choice. Perhaps they don't understand their options, but it's clearly up for debate, as we're doing now. > spend less in order to save the environment That's an ironic argument,
645.
by xapata 5y ago
"Common" people in the USA don't have cash reserves. They are debtors, on average.
646.
by xapata 5y ago
> forced inflation by creating money from thin air, is stealing That's just your ethical interpretation. Society in aggregate defines what is and isn't stealing, and at the moment we've deemed monetary inflation to be eth
647.
by xapata 5y ago
Inflation is no more stealing than the dynamics of supply and demand are, which is to say, only as much as society permits and ostensibly finds desirable.
648.
by xapata 5y ago
You forgot interest rates changing, which is the primary cause of the recent home price changes. Remember, the mortgage market has a set of standard terms, like a 30-year-fixed.
649.
by xapata 5y ago
> repayment to stay the same You mean the repayment amount? I'm not sure what you're asking. Of the lump sum price (principal), interest rate, loan term (time), and monthly payment, you can only change three of the four, for a
650.
by xapata 5y ago
If they didn't anticipate inflation correctly, their profits on past loans that are still active will be lower.
651.
by xapata 5y ago
The article was crap, I agree. Keynes would be better characterized by discussing government intervention to address a market failure , rather than saying the market has failed , which has different connotations. Personally, I disagree w
652.
by xapata 5y ago
The article isn't Keynesian, nor is Keynesianism trash. I do agree that ignorance is destructive. Take away the word "profligate" from consumer spending and you'll be closer to the truth. Median real wages have been fa
653.
by xapata 5y ago
If inflation goes up as a result of low inflation rates, debtors benefit. Which is why all the bankers are complaining about the possibility.
654.
by xapata 5y ago
Some goods have gotten cheaper as they've had more capital invested in their production processes, but many goods do not. Automobiles are a classic example. Ask your grand parents how much they paid for their first car. Yes, the goo
655.
by xapata 5y ago
Your payments go towards both interest and principal in a proportion that varies over the lifetime of the loan, such that your time frame is set by the terms of the loan. If you get a 30-year fixed rate mortgage, you pay it back in 30 year
656.
by xapata 5y ago
> ... that same difference in the Fed Funds rate. The differential between mortgage rates and the federal funds rate is only driven in part by regulation. The rest is market forces and the perceived risk of rising inflation. If we had
657.
by xapata 5y ago
> Except homeowners get price exposure ... you’re stuck in that home until its value climbs again or you earn enough to pay off the loss. > ... Higher values Higher values at the time of purchase or at the time of sale? The latter do
658.
by xapata 5y ago
Yes, but it turns out I came out ahead from 1990-2021 by having all my investments in the stock market instead of housing.
659.
by xapata 5y ago
Yes, as I said, you care about the monthly payment, not the lump sum price of the house.
660.
by xapata 5y ago
Rent increases are a cause of inflation (as part of the basket of goods that defines inflation), which in turn causes interest rate increases, which then cause home price decreases. Homes are like fixed-income securities. When interest r

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