Community Chat

[Sweetbay magnolia]

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@Snowpuppy wrote:

So for those who believe the talking heads that these are inflation fighting measures...

Then why is inflation still soaring one year after the first rate hike?

They have lost control of the economy and have nothing left to throw at it.

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I think there is much gaming of the system going on.  Price gouging.  I'm no youngster (geez I sound old!) but I have seen this before.   There was a guy named Nixon the last time this happened.

[Sweetbay magnolia]

And yes, I worked in the mortgage biz for many years.  Sold securities and set rates for the day.

This is all fluff.

12% was at about "par" in the best of years.

[GenXmuse]

My parents couldn't buy their first house until they were well into their 40's because of the interest rates. 

[gizmogal]

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@Snowpuppy wrote:

So for those who believe the talking heads that these are inflation fighting measures...

Then why is inflation still soaring one year after the first rate hike?

They have lost control of the economy and have nothing left to throw at it.

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Get your facts straight. It's not "soaring". Soaring means it's presently going up. Last year inflation was 10%. That's why Social Security recipients got a COLA raise of 9% or so.  

In fact, inflation is now down to 6%. A whole year later. Yes, that's the present. Going down. I don't say down meaning inflation is low. It's down from when it soared. Soared is past tense.it is getting gradually corrected. If it corrects too fast it's called recession.  So they kick up the cost of borrowing gradually to bring down inflation and avoid recession. 

Inflation is still unacceptably high, and that is what the  Fed is trying to help. But it is factually incorrect to claim it is still soaring.  Have your own opinion, but you can't make up your own facts to support it. . 

You need to know more about economics and a lot more about facts of our improving economy. Not perfect, but there is high employment, ongoing job creation, and gradually dropping inflation.  Those are facts. 

[phoenixbrd]

"Facts" appear to be subjective.  

[skatting44]

 Time will tell , what will come finacially for us all .

 Retirees  will see their investments bottom and wonder why what changed this  month  in how their money   has been  mandated to be invested .

[gidgetgh]

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@skatting44 wrote:

 Time will tell , what will come finacially for us all .

 Retirees  will see their investments bottom and wonder why what changed this  month  in how their money   has been  mandated to be invested .

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@skatting44 - not all retirees. This retiree invests very conservatively which doesn't always reap rewards, but is more stable, but, admittedly, has been flat.  I am thrilled now with the cd and money market rates. Nothing locked in for more than 13 months, but I don't look further ahead than that. 

My IRA from my 401K which is in a cd at a horrible rate, matures on 5/1. My plan now is to renew it at a higher rate, if the rates hold.

[skatting44]

@gidgetgh 

what was won't be wait and see  how things change as  investment companies are mandated  to invest in  what  some leading economist  deem  will be as productive as those " junk bonds "  that  caused so much havoc in many state and union  retirement plans .  Little has been   mentioned in the news abt this  mandated change  . One example,  Federal employee retirement system is  changing their portfolio's  and nary a word to those paying into the funds . The same change   affects other 401 k's .

[gidgetgh]

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@skatting44 wrote:

@gidgetgh 

what was won't be wait and see  how things change as  investment companies are mandated  to invest in  what  some leading economist  deem  will be as productive as those " junk bonds "  that  caused so much havoc in many state and union  retirement plans .  Little has been   mentioned in the news abt this  mandated change  . One example,  Federal employee retirement system is  changing their portfolio's  and nary a word to those paying into the funds . The same change   affects other 401 k's .

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@skatting44 - I appreciate the info. Thanks for posting it.  In my posts I was really referring to personal savings.  I don't have a financial advisor. My financial advisor is me.  

I rolled my 401K years and years ago into some freaking 4 year thing that someone else managed and while I didn't lose money, I didn't make much and I held my breath for 4 years. At the end of that I rolled it again into a bank IRA cd where it has been pretty flat but I feel more comfortable so there is a trade off.

The rest of my comments also referred to personal savings and money market and cd rates.  

As for my pensions.....I don't know how they're funded and I'm probably better off not knowing.

Thanks again for your thoughts and input.