by Summary:
Hard to believe that we have not gotten off this interest rate insanity. Interest rates have very little effect on the economy.
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Hard to believe that we have not gotten off this interest rate insanity. Interest rates have very little effect on the economy.
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Bill Haskell writes From the Middle Out and Bottom Up
Joel Eissenberg writes The business model of modern universities
Bill Haskell writes The Economics of Killing Medicaid . . .
Angry Bear writes Healthcare in the United States
| Hard to believe that we have not gotten off this interest rate insanity. Interest rates have very little effect on the economy. |
It's not about income, higher interest rate lower valuation multiplies.
Yes, by increasing the "e" in p/e. E is earnings. (income.)
@Mike Norman MMT Economics I think he's talking about people that try to price stocks based on discounted future earnings.
Nice teeth Mike! Fuck this market.
It’s ok we’re going to pump hard as fuck soon
Mike you're looking at mortgage rates doubling soon…within a relatively short period of time. Where is everyone getting this money from? What's gonna happen to house prices and the wealth effect? When everything is predicated on ultra low rates for the past decade pretty much those "incremental" price adjustments are a big deal. Just like everyone went "all in" because of low rates, now they are taking their capital away because rates are rising. Even if you're right and it's only mental….this is the mentality of the market. It's not at all surprising ….and u always say " the fed tells you what they are doing"….they are telling you on a near daily basis and their objective is to slow demand to knock down inflation. Don't fight the fed. Everytime the open their mouth they remind us…."a quarter point everytime", now it's a half point..now it's 3/4 point. This is by design man.
Why do u think they are sending money to Ukraine? Because this is America's proxy war now. You think they care about Ukrainians? Fuck no. Once Russia is softened up enough America might start fighting themselves. Who knows.
@Cryptonite Clark @Cryptonite Clark it's "aid". Typically "aid" is not a loan and no repayment is expected. Stimulus? I guess to the companies that manufacture the weapons but there is little to no actual stimulus effect on the us economy as a result of a few billion dollars. The US spends 100s of billions a month, this is a drop in the bucket.
There is a housing shortage but there are more dominant market forces that have caused prices to go up as much as they have. You can have the same supply and demand imbalance but if mortgage rates are 3% vs 7% houses are going to be more expensive. Many people bought multiple properties as investments because rates were so low which bid up prices for everyone too
@Tom S As Mike has said numerous times, banks loans are increasing and debt service burden is historically low. Haven't you learned anything from this channel?
@Cryptonite Clark i dont understand, what point of mine are you countering, r u saying that rising rates won't lower house prices?
@Vagonius Thicket-Suede Agree! Housing prices jumped 10-14% over the past few years, depending on the market. New housing starts have been flat since the mid 1950s. Meanwhile, the US population grew 30%.
@Tom S I could be wrong, but I would guess that the majority of people with multiple homes are part of the wealthy crowd. They are generally those who will benefit from higher interest rates from their savings with US securities.
scooped up more CRM today
i think he just described "mass formation" that we're told by cnn doesnt exist…..
I think its still a little early to buy the market. I think its still a stock pickers market. Look how well the low hanging fruit held up against the market decline. I would only buy the market if it went 4270-4300
Exactly my thoughts. Complete over reaction in the market today.
your website is hacked again
Any comments you have regarding Ukraine or Russia are suspect and not entirely in good faith.
The dogma and mythology about interest rates is best described as a HOAX. They hoax everything Mike. Trust me they hoax EVERYTHING.
Oil didn't give a F***wat the fed says up 1.2%
Thoughts on banks writing off billions of Russian assets?
Wow, love to see you on YouTube!!!
The markets may be illogically overreacting to the hiking rates and it may not be logical but the fact is markets are basically tanking Mike
Good video Mike
Are you buying options or the actual stock? Thanks Mike!
On a weekly chart, the movements seems predictable……..
Are the humans really back in control yet or are we still maniplulated by Algo’s?
Worst.market I've seen since 2008
Central banks surely realise that monetarism is a false framework. After all, no CB has targeted the so-called "money supply" since the 90s. And yet, here we are… It's madness.