Discussion: The Economy, Fiscal Cliff, National Debt, And Other Financial Issues IV

[MagnarTheGreat]

Consumer Price Index Summary - 2022 M11 Results

YoY rate down to December 2021 level.

United States Inflation Rate - November 2022 Data - 1914-2021 Historical

Heatmap - Economic Indicators By Country

 

[DJ Kornphlake]

 

[squeekness]

Again, why is the only way to make money have to be by ripping people off?

 

[MagnarTheGreat]

Jim Sciutto, CNN: "New: US economy grew faster than previously thought in the third quarter. Commerce Department's final reading shows GDP up at an annual pace of 3.2% in the July to September period, above the 2.9% estimate from a month ago."

 

[MagnarTheGreat]

Wall Street Journal - U.S. Inflation Slowed for Sixth Straight Month in December

U.S. inflation eased to 6.5% in December compared with a year earlier, marking the sixth straight monthly deceleration since a mid-2022 peak.

The consumer-price index, a measurement of what consumers pay for goods and services, rose at its slowest pace since October 2021, the Labor Department said Thursday. December’s annual inflation rate was down from 7.1% in November and well below a 9.1% peak in June.

https://www.bls.gov/news.release/cpi.nr0.htm
Consumer Price Index Summary - 2022 M12 Results

Heatmap - Economic Indicators By Country

 

[MagnarTheGreat]

US economy grows strongly in fourth quarter; weekly jobless claims fall

 

[squeekness]

The poor can fend for themselves!

 

[MagnarTheGreat]

CNBC - Payrolls increased by 517,000 in January, much better than 187,000 expected
Nonfarm payrolls were expected to increase by 187,000 in January, according to Dow Jones estimates.

The employment picture started off 2023 on a stunningly strong note, with nonfarm payrolls posting their strongest gain since July 2022.

Nonfarm payrolls increased by 517,000 for January, above the Dow Jones estimate of 187,000. The unemployment rate fell to 3.4% vs. the estimate for 3.6%. That is the lowest jobless level since May 1969.

Markets slumped following the report, with futures tied to the Dow Jones Industrial Average down about 200 points.

 

[Teelie]

Republicans go: "This is a disaster!" because something good for the general populace is bad for their rich donors.

 

[MagnarTheGreat]

hur hur nobody works anymore because of COVID19 relief money! </mitchmcconnellandotherrepublicans>

anyway what this shows is that despite all the tech layoffs, people are landing on their feet in a extremely hot job market elsewhere. There's over a million dead from COVID19 and they weren't all retirees.

The federal reserve is driving up interest rates in the hopes of driving up unemployment so with these economic numbers that will continue (which is why wall street investors aren't happy).

 

[Teelie]

I don't get their logic to make people unemployed is a good thing. All the time we hear whines from Republicans about "lazy" "welfare queens" and people "cheating the system" so when we achieve the highest level of employment in half a century, the Fed wants more people unemployed? I know who they are beholden to and it is not the American people.

 

[squeekness]

I don't get their logic to make people unemployed is a good thing. All the time we hear whines from Republicans about "lazy" "welfare queens" and people "cheating the system" so when we achieve the highest level of employment in half a century, the Fed wants more people unemployed? I know who they are beholden to and it is not the American people.

They gave up on logic a long time ago it seems.

 

[MagnarTheGreat]

They want to blame wage growth for inflation and not, you know, record corporate/business profits and other factors (including international ones).

 

[Teelie]

So greed is good only so long as the rich are the greedy.

 

[Hobgoblin]

So SVB just collapsed, the second biggest bank collapse in US history.

 

[squeekness]

So SVB just collapsed, the second biggest bank collapse in US history.

That's not good. I suppose they'll want a bailout......

 

[MagnarTheGreat]

Some banks flopping is fairly regular, though SVB is larger than most.

Reuters - Banking regulators shutter SVB, collapse unnerves investors

FDIC: Bank Failures in Brief

https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html

• The company’s downward spiral began late Wednesday, when it surprised investors with news that it needed to raise $2.25 billion to shore up its balance sheet.
• “This was a hysteria-induced bank run caused by VCs,” Ryan Falvey, a fintech investor of Restive Ventures, told CNBC.
• Now, those who remained with SVB face an uncertain timeline for retrieving their money.

 

[MagnarTheGreat]

Reuters - Silicon Valley Bank's demise began with downgrade threat

The Moody's call came after the value of the bonds where SVB had parked its money fell due to the higher interest rates.

Friday's collapse sent jitters through global markets and walloped banking stocks. Investors worry that the Federal Reserve's aggressive interest rate increases to fight inflation are exposing vulnerabilities in the financial system.

Interest rates are far from historical highs like most recently in the 1970s and 1980s (which were also done under the taming of inflation belief). Any banks and businesses that are now predicated on abnormal cheap near 0% rate credit may have trouble continuing but that’s to be expected.

Trading Economics - United States Fed Funds Rate

Web3 is Going Just Great

 

[squeekness]

I don't need to lose any more money from my IRAs right now. The market has been tanking.

 

[MagnarTheGreat]

Associated Press - Yellen: No federal bailout for collapsed Silicon Valley Bank

Treasury Secretary Janet Yellen said Sunday that the federal government would not bail out Silicon Valley Bank, but is working to help depositors who are concerned about their money.

Yellen said she expected regulators to consider "a wide range of available options," including the acquisition of Silicon Valley Bank by another institution. So far, however, no buyer has stepped forward.

 

[squeekness]

Maybe we shouldn't be bailing everyone out all the time.

 

[Sithborg]

Yeah, I have little concern about bailing out this bank and these VCs. I do have some concern about all the jobs this could affect, but lets face it, with the higher ups pushing a recession as much as they can, those jobs were already at risk.

 

[MessiahDecoy123]

Maybe we shouldn't be bailing everyone out all the time.

We didn't bailout the working class.

Just the banks and their CEO's.

 

[DJ Kornphlake]

 

[squeekness]

Warren isn't wrong....