• iopq@lemmy.world
    link
    fedilink
    arrow-up
    1
    ·
    6 months ago

    When the Fed makes statements, banks already respond because it affects the curve. If you expect higher rates in the future, you wouldn’t accept longer duration bonds right now for the current smaller rate.

    So a statement that rates will be increased actually moves them for anything other than the current over night rates

    • Maggoty@lemmy.world
      link
      fedilink
      arrow-up
      1
      ·
      6 months ago

      Yes, that’s the blue section. The Red section it turns out is the housing sector, that DGAF because they’re heavily coordinating prices and there’s no cheaper alternative.

      • iopq@lemmy.world
        link
        fedilink
        arrow-up
        1
        arrow-down
        1
        ·
        6 months ago

        Yes, which is dominated by NIMBY policies and housing prices increases in places like SF where building is almost non-existent

        Places like Texas only had increases of 0.6%

        GMwdwVdW0AAbcmX

        • Maggoty@lemmy.world
          link
          fedilink
          arrow-up
          1
          ·
          6 months ago

          Now do Metro Area Rent. And do it over the last 4 years. Housing is screwed because of the high interest rate loans locking homeowners in place and dropping the available stock. Landlords however just declared open season on their renter’s wallets.

            • Maggoty@lemmy.world
              link
              fedilink
              arrow-up
              1
              ·
              6 months ago

              Here’s some numbers from a local paper that’s not paywalled.

              Here’s the very enlightening graph.

              And finally, here’s what landlords think about “just following the market”

              I didn’t get why you’re so resistant to this? We know where the bottleneck is before our economy hits stagflation. We can fix this. And then we’ll all celebrate being able to afford celebration again.

              • iopq@lemmy.world
                link
                fedilink
                arrow-up
                1
                ·
                edit-2
                6 months ago

                What stagflation? The inflation is 3% and the economy is doing just fine

                Nice graph, though, since it doesn’t include recent price drops. It’s 2024 already

                • Maggoty@lemmy.world
                  link
                  fedilink
                  arrow-up
                  1
                  ·
                  edit-2
                  6 months ago

                  Stagflation is high inflation, low growth. One of the warning signs is intractable inflation because it forces a demand crisis once prices get high enough. That causes low growth while inflation is still running away. So yes we’re in danger of Stagflation.

                  You can’t get 2024 numbers for most things because it’s still 2024. Unless you personally call up an organization that does the tracking to get monthly or quarterly numbers. And unless it’s going to drop the price by 20% this year then it’s not going back to where it was pre-pandemic.

                  Again, I’m not sure why you’re fighting so hard. We knew there was something going on with inflation not responding. This means we can fix it with new policy and subsidies.