The big flip…

Dave Taylor said:
You didn’t hear JPOW today?
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Yeah, I watched his interview at the Economic Club of Washington. That's not an unplanned FOMC meeting. He will keep hiking as needed. The next meeting is March 22nd.

The last time there was an intermeeting move was March of 2020, because C19. March 3rd at 10am they cut by 50bps to 1.00-1.25%, and then March 15th at 5pm they cut to 0.25%.

Prior to that the last intermeeting move was in 2008.

Before that was 2001, once cut in April, and another in September.
 
Dave Taylor said:
It was just a play on words. Obviously our system was designed by white men for white men. This still benefits them the older they get as it';s by design but at some point some sort of wealth redistribution will occur. Today's unplanned FED meeting my say something about this. Would be interesting if Powell came out and was more hawkish with a 50BP hike rather than the priced in 25. I think you would see this one month 100% rally in growth stocks disappear faster than you can blink. The unknown is how long can they fake a broken system and keep gaining wealth for the elite.
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Aren't you white? And aren't you making your money from the elite wanting to continue to make money?
 
stb222 said:
Aren't you white? And aren't you making your money from the elite wanting to continue to make money?
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I do. It's the point hat people argue that the elite are not majority white which is untrue. I may not be the smartest person in the world but it doesn't take a brain surgeon to see that the fed is running out of bullets in it's own game.
 
Tim said:
This is flawed. Regardless of demographics, some people will always put in more work than others. Equality of outcome can never be guaranteed.
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How is it flawed? My dad made approximately $27,000/yr in 1971. He bought our house for $31,000. That house sold in 2019(pre covid) for $500,000 cash. It's now worth in the ballpark of $750,000. The equivalent carpenter(my father's profession would need to have a salary of 654,000 to be on that same purchasing level. Last time Looked the highest paid union carpenter is making around $140,000/yr. So, with that being said, how does a modernize carpenter afford the same home my father afforded on his salary?
 
Dave Taylor said:
How is it flawed? My dad made approximately $27,000/yr in 1971. He bought our house for $31,000. That house sold in 2019(pre covid) for $500,000 cash. It's now worth in the ballpark of $750,000. The equivalent carpenter(my father's profession would need to have a salary of 654,000 to be on that same purchasing level. Last time Looked the highest paid union carpenter is making around $140,000/yr. So, with that being said, how does a modernize carpenter afford the same home my father afforded on his salary?
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Since he's a carpenter I would say buy a fixer-upper and make some improvements :)
 
Dave Taylor said:
How is it flawed? My dad made approximately $27,000/yr in 1971. He bought our house for $31,000. That house sold in 2019(pre covid) for $500,000 cash. It's now worth in the ballpark of $750,000. The equivalent carpenter(my father's profession would need to have a salary of 654,000 to be on that same purchasing level. Last time Looked the highest paid union carpenter is making around $140,000/yr. So, with that being said, how does a modernize carpenter afford the same home my father afforded on his salary?
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What math requires a salary of $654k in order to buy a $750k house?
 
Dave Taylor said:
I do. It's the point hat people argue that the elite are not majority white which is untrue. I may not be the smartest person in the world but it doesn't take a brain surgeon to see that the fed is running out of bullets in it's own game.
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The majority of the elite are white because the majority of people in this country (75%) are white. The largest total number of poor in this country are also white for the same reason.
 
Captain Brainstorm said:
The majority of the elite are white because the majority of people in this country (75%) are white. The largest total number of poor in this country are also white for the same reason.
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Numbers yes, percentages no. If it’s so fair why is a much larger percentage of no whites poor?
 
Dave Taylor said:
To make it equivelant to 1971. Just over one year’s salary paid for the house. Now it won’t pay for a 6th of it.
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it is geometric, not linear.

prices are based on demand and go to the highest bidder. no great overlord is setting the price of the house.
the market is.

And white were are at it, your Dad made 3x the median income. He was smart enough not to go into huge debt since he could have purchased more house.
 
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Patrick said:
it is geometric, not linear.

prices are based on demand and go to the highest bidder. no great overlord is setting the price of the house.
the market is.

And white were are at it, your Dad made 3x the median income. He was smart enough not to go into huge debt since he could have purchased more house.
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My point is, if it’s so much better for everyone how does a person making an average salary buy a comparable home for his/her family?
 
Dave Taylor said:
How is it flawed? My dad made approximately $27,000/yr in 1971. He bought our house for $31,000. That house sold in 2019(pre covid) for $500,000 cash. It's now worth in the ballpark of $750,000. The equivalent carpenter(my father's profession would need to have a salary of 654,000 to be on that same purchasing level. Last time Looked the highest paid union carpenter is making around $140,000/yr. So, with that being said, how does a modernize carpenter afford the same home my father afforded on his salary?
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There are 2 other factors to this huge increase in home prices.

1. Women joined the workforce. This meant families had more money to spend on a home and prices got bid up higher. The modern carpenter affords his house because his wife is paying for it too.

2. Mortgage rates used to be much higher. Higher interest rates keep downs down the sale price of a home. If someone can afford $500/month in mortgage payments it doesn't matter what percentage is interest and what is principal. People like your dad and my dad probably bought homes at the best time in history. The high interest rates kept the prices lower and then a decade later they could refinance to a low rate and watch their home value skyrocket and have huge amounts of home equity to borrow from.

I think most Americans are poorer than people were 70 years ago. Back then a man with no college could support a family, pay his mortgage and buy a car with no loan. Now it takes 2 workers for most families. Technology and outsourcing masks all of this.
 
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