Interest rate increase

[LuvOrlando]

Those people are hedge funds and pension funds. No idea what they're going to do.

This is the stuff behind door number 2 that I find disconcerting, tinkering with a Jenga piece can have unintended consequences and while Finance is tools based Econ is Social. In the end human behave as a herd and the Social Sciences take over... it's like a social experiment in real time. The people making decisions better have steady hands.

 

[dvcgirl67]

Hopefully we never will. The only thing that drove those rates (I recall 16% CD's, because of 13% inflation rate) was hyper inflation.

Exactly! Savers never benefit. Savers who invest benefit.

It's certainly an interesting period economically for this country. Seems to me that the Fed is slow to start cutting and now will likely be constrained due to new shut-downs in the East caused by the pandemic and the war in Ukraine. I'm reading more and more that we're in for stagflation followed by a recession. So, buckle up everyone....we could be in for a bumpy ride.

 

[GAN]

This is the stuff behind door number 2 that I find disconcerting, tinkering with a Jenga piece can have unintended consequences and while Finance is tools based Econ is Social. In the end human behave as a herd and the Social Sciences take over... it's like a social experiment in real time. The people making decisions better have steady hands.

No economy is Social, it’s all about money/finances. For instance, for many people raising the rate is beneficial because of the position they’re in financially. People buy based on their own financial situation -which naturally is different for every single person or business. Some people buy cars without a loan. There isn’t some scheme to play a game with us, decisions are made to help stabilize inflation so prices don’t become unaffordable(if that hasn’t happened to some already). People aren’t going to start running around crazy because a home mortgage went from 3% to 4% …whether you buy depends on your situation, income, savings, point in life.
Maybe you can explain exactly what it is that you’re expecting. I’m still not sure about that.

 

[Cannot_Wait_4Disney]

The Brick laying boom and point scoring recession is spreading. Kentucky went down last night too!!!! To a 15 seed. HAHAHAHHA. And this has actually caused a weather phenomenon in the midwest where a mysterious blue mist is raining down on the region and an invasive species (the peacock) is licking all the droplets up that it can. I-65 and I-64 between Indianapolis and Lexington, officially known as the Wildcat trail of tears, have turned blue.

 

[GAN]

The Brick laying boom and point scoring recession is spreading. Kentucky went down last night too!!!! To a 15 seed. HAHAHAHHA. And this has actually caused a weather phenomenon in the midwest where a mysterious blue mist is raining down on the region and an invasive species (the peacock) is licking all the droplets up that it can. I-65 and I-64 between Indianapolis and Lexington, officially known as the Wildcat trail of tears, have turned blue.

Man… they raise it .25 and and this is what happens. I could have predicted this!

 

[LuvOrlando]

No economy is Social, it’s all about money/finances. For instance, for many people raising the rate is beneficial because of the position they’re in financially. People buy based on their own financial situation -which naturally is different for every single person or business. Some people buy cars without a loan. There isn’t some scheme to play a game with us, decisions are made to help stabilize inflation so prices don’t become unaffordable(if that hasn’t happened to some already). People aren’t going to start running around crazy because a home mortgage went from 3% to 4% …whether you buy depends on your situation, income, savings, point in life.
Maybe you can explain exactly what it is that you’re expecting. I’m still not sure about that.

Do you realize that Economics is a Social Science as a discipline? You can check, go look it up at various schools and get back to me and we can go from there...

or you can just share what you think without mansplaining things to me, I am interested in thoughts no more and no less

 

[RamblingMad]

No economy is Social, it’s all about money/finances. For instance, for many people raising the rate is beneficial because of the position they’re in financially. People buy based on their own financial situation -which naturally is different for every single person or business. Some people buy cars without a loan. There isn’t some scheme to play a game with us, decisions are made to help stabilize inflation so prices don’t become unaffordable(if that hasn’t happened to some already). People aren’t going to start running around crazy because a home mortgage went from 3% to 4% …whether you buy depends on your situation, income, savings, point in life.
Maybe you can explain exactly what it is that you’re expecting. I’m still not sure about that.

There is a field of economics called Behavioral Economics. It's combines the social with the math.

https://news.uchicago.edu/explainer/what-is-behavioral-economics

 

[GAN]

There is a field of economics called Behavioral Economics. It's combines the social with the math.

https://news.uchicago.edu/explainer/what-is-behavioral-economics

I understand …but the primary drivers are financial. You can analyze why a person does or doesn’t invest in a 401k …but if they’re living paycheck-paycheck like many Americans, what are you looking at? Same thing for a home, car, or anything else. That’s my point.

 

[LuvOrlando]

I understand …but the primary drivers are financial. You can analyze why a person does or doesn’t invest in a 401k …but if they’re living paycheck-paycheck like many Americans, what are you looking at? Same thing for a home, car, or anything else. That’s my point.

I would consider that the drivers of these examples aren't financial at all and that money is only a means to achieve goals, people don't drag themselves into tough,miserable or dangerous jobs for money - they do it for what the money permits.

I suspect the real goals most humans probably pursue are shelter, safety, security, transportation and the same for their loved ones, the particular things they select are a function of feelings or personality, same goes for the things they deselect. So needing shelter/safety/security/transportation is a basic thing, but, understanding the why of what people choose as a means to fill that need is muddy, and this is the space where things can go in any number of ways. This is why people watching matters, or at least why I believe it matters, so I watch & listen.