As a foreigner who lived through the entire duration of zero covid for the past 3 years in China, this is by far the most objective commentary I’ve seen on TH-cam to date. Economists and business leaders are voicing concerns at the start of 2023 that the year could be a difficult one. JPMorgan Chase & Co. Chief Executive Jamie Dimon said Tuesday that the Federal Reserve may need to raise interest rates to 6% to fight inflation, higher than the peak level between 5% and 5.5% in 2023 that most Fed officials penciled in after their December meeting. Although I read an article of people that grossed profits up to $500k during this crash, what are the best stocks to buy now or put on a watchlist
Emotionally-charged decisions to sell off large quantities of stocks or other investments now lock in your losses, removing any chance for future growth.
@@davidjackson4437 Very true, a huge part of my portfolio growth has come during this bear market. I've been able to scale from $180K to $672K in a short period of time. I basically was just following the steps and guideline from my financial advisor. as long as you've professional help, you're good to go...
@@gowonjake Well i won't say i have........Her name is " CLAUDIA TRINIDAD RIVAS" can't divulge much. Most likely, the internet should have her basic info, you can research if you like
The CPI basket is just an average, based on surveys of Americans. If you've paid off your house, then your shelter costs are ~0. If you're young, then the medical care weighting of ~8% is probably far too high. If you're a teetotaler, then the alcohol+tobacco weighting of 1.3% is 0 for you. Etc.
@@VivaLegolastef90 well many are since you don’t have to show proof of income when you renew a lease to an apartment or home, and that’s when the pandemic hit and everything has gone up while some incomes decreased or stayed the same.
"Shelter" is expensive because government has destroyed free market housing, and used low Fed interest rates to promote the richest acquiring ever more assets that drive the costs up while regulations make new housing hard to build. Government spending and price controls in a command economy is the source of these problems.
@@spacetoast7783 The United States does not have a free market when it comes to housing. Most counties use zoning regulations to ban homeless shelters, low-income housing, apartment buildings, mixed used zoning, and more. A country with free market housing would be Japan, because housing prices follow inflation, instead of outpacing it.
This is just ridiculous. Publishing this video now, trying to explain in advance why inflation numbers are going to be high. It was obvious to anyone that rent prices were going up. If I signed my lease today, it would cost me 25% more than year and half ago. Lots of people are forced to stay in the same place, and if moving out for a better job, all that extra money is burnt with the increased rent. Plus 1/3 part of CPI should be obviously revised. With such drastic home and rent price increases in the last few years, I haven't heard about same salaries growth... Title of this video is painfully truthful - it's all just numbers for the fed, and they can play and manipulate them as they desire.
Companies and people that own rental properties can charge as much as they want, if that upsets you, then you should move to a different country, because we have a capitalist system in the US
0:15 The Bureau of Labor Statistics (BLS) is a federal agency that collects and disseminates various data about the U.S. economy and labor market 1/3 of market basket is shelter/ housing. 0:50 trickiest and hold so much weight in the overall index. 1:40 prices that change relatively infrequently 很少 2:00 report on a staggered schedule. 交錯的時間表 2:50 OER, owners' equivalent rent: the price an owner would pay to rent a comparable home. 3:40 Former director of the congressional budget office.
Question: if housing is such a large component of inflation and the fed's primary tool to control inflation is increasing prime rates, and subsequently borrowing rates throughout the economy, dosen't that make financing real estate more expensive and consequently drive up rent? Clearly I am missing something here, or forgot something from econ class eons ago...appreciate any clarification.
Every person who can’t afford a home due to rates becomes a tenant who drives up rents. It means another homeowner who doesn’t want to sell because they locked in a 30 year mortgage at 2.50%. Hard to imagine the fed doesn’t understand that the tool they are using to bring down inflation is making it worse.
Funny how the Fed didn’t tackle housing inflation for years as our home prices were skyrocketing. I watched as my home price was going up $5k a month for a few years. Not hard to see this is inflationary as buyers got loans for 2% rates.
I took the 50-50 option. Half on fixed and the other variable or flexible rate. That is the gamble one can bet on. If the rates go up, only half of your loan will be affected. But if the rates do down, your will pay more on your fixed rate portion.
Build more housing. That's the only solution, but it's a complex problem with backwards tax incentives and overly restrictive housing codes and zoning laws
Housing is not that hard to measure. Measure rents instead of some voluntary number that amounts to garbage. Yes, rents are going up, that happens when you lock landlords down for a couple of years. On the flip side, a lot of Americans don't do what they need to in order to own homes and would rather rent so unfortunately they wind up paying rent for long periods of time, much longer than they should.
You can’t force landlords to reduce rents. So you have no choice but to move out and find cheaper alternatives. This is why we need to ban 2nd home ownership. Why must tenants be forced to be landlords’s cash cow?
Detroit doesn't have any houses for sale really..all the mayor builds is affordable housing not houses that are affordable..Michigan can't keep building buildings for low income and expect to reap any economic benefits..a woman with 3 kids should not be in an apt..rather an affordable house..build more houses,collect taxes..money for the city..mayor duggan
My opinion, Inflation is another word for GREED. Inflated prices means more 💰💰. When the war in Ukraine started. Everything has gone up. 1st to go up was oil/gas then we know what has happened after that.
So critical data the FED counts on for their policy cannot be trusted at all. No wonder people are so concerned that the FED may not know what they are doing.
USA export their inflation. Money printing strengthen the dollar because it's used to pay debts already in place. No money printing solve that the debts are increasing when printing money except by directly target the one in blame. The bank making too many loans to irresponsible people.
If the fed did its primary job in the first place - control the money supply and not allow congress to increase our balance sheet by 4 trillion…they wouldnr have to play these games with interest rates.
I have learned in recent months is to remain calm, especially when it comes to investments in cryptocurrencies. Learn not to sell in a panic when everything goes down and not to buy in euphoria when everything goes up. i advise y'all to forget predictions and start making a good profit now because future valuations are all speculations and guesses. The market is very unstable and you can not tell If it's going bearish or bullish. while myself and others are trading without fear of making a loss others are being patient for the price to skyrocket, i would say trading has been going smoothly for me, I started with 1.3 BTC and i have accumulated over 7 BTC in just three weeks, with the trading strategy given to me by expert trader Kennet Gibbs
Most investing mistakes and losses usually occur when you invest without proper knowledge of the market. I was able to recoup my losses with him. I'm glad to know that many have already benefited from it.
Encourage building more shelter. Loosen single family only zoning near jobs and transit so homes get built where people can get to work and they’ll buy the homes.
Inflation does not have to run on for10 more years. The reduced level of Domestic Oil production, and lack of Gasoline refineries in this country is at the root of the problem. We haven't built refineries in this country for 20 years. That is restricting the supply on gasoline artificially keeping prices high. High oil prices goes into everything; Plastics in cars, furniture, Diesel fuel, jet fuel, farmers fuel, fertilizer, rent, home heating, electric power companies the rely on natural gas. This is a manufactured crisis, and the American people need to protest at the ballot box in November elections, and 2024 elections. Unless are really dumb, you should not be voting for Democrats. To save your standard of living, and future, vote Republican in every office, and school board across the United States. My family voted Democratic for over 50 years, but this Democratic Party is not the same party. It has a lot of control the world globalist. If they don't cheat in the election, we can turn this all around.
The shelter index doesn't make any sense, think about this. If the Fed raises interest rates (to curb inflation) , mortgage servicing costs increase (for landlords/investors), thus they must raise rents to combat the high interest rates. Therefore the Fed's actions would have an opposite affect, more investing tips on my channel. 👍
Exactly, the cost of acquiring the capital to buy housing increases, therefore fewer people can afford to buy it. Thus, housing prices go down to account for it.
I pray to God for the wellbeing and happiness for everyone in the Global World based on Friendship, Mutual Understanding, Peaceful Coexistence,Non Violence And Justice For All.
Great stream, as always. I appreciate the level-headed approach you take to the news and the markets.. More emphasis should be put into trading since it is way profitable than hodling. Trading went smooth for me as I was able to raise over 10.2 BTC when I started at 4.5 BTC in just few weeks implementing Patricia Reo daily trading signals and tips.
As a foreigner who lived through the entire duration of zero covid for the past 3 years in China, this is by far the most objective commentary I’ve seen on TH-cam to date. Economists and business leaders are voicing concerns at the start of 2023 that the year could be a difficult one. JPMorgan Chase & Co. Chief Executive Jamie Dimon said Tuesday that the Federal Reserve may need to raise interest rates to 6% to fight inflation, higher than the peak level between 5% and 5.5% in 2023 that most Fed officials penciled in after their December meeting. Although I read an article of people that grossed profits up to $500k during this crash, what are the best stocks to buy now or put on a watchlist
Emotionally-charged decisions to sell off large quantities of stocks or other investments now lock in your losses, removing any chance for future growth.
@@davidjackson4437 Very true, a huge part of my portfolio growth has come during this bear market. I've been able to scale from $180K to $672K in a short period of time. I basically was just following the steps and guideline from my financial advisor. as long as you've professional help, you're good to go...
@@brendazvandasara Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
@@gowonjake Well i won't say i have........Her name is " CLAUDIA TRINIDAD RIVAS" can't divulge much. Most likely, the internet should have her basic info, you can research if you like
The shelter index is about 1/3 of CPI, but more like 2/3 of my own personal budget.
landlords and banks won't give you an apartment if you have to pay more than 33% of your monthly income
The CPI basket is just an average, based on surveys of Americans. If you've paid off your house, then your shelter costs are ~0. If you're young, then the medical care weighting of ~8% is probably far too high. If you're a teetotaler, then the alcohol+tobacco weighting of 1.3% is 0 for you. Etc.
@@VivaLegolastef90 well many are since you don’t have to show proof of income when you renew a lease to an apartment or home, and that’s when the pandemic hit and everything has gone up while some incomes decreased or stayed the same.
Thanks for sharing your personal story. You're way more important than everybody else.
@@spacetoast7783 I know. That’s why I made sure to comment.
If it's people's biggest expense, it doesn't skew the number, it is the number.
100
Rising rent and mortgages is a great way to kill discretionary spending
Let’s go joe!
th-cam.com/video/XYTgFxwtTDE/w-d-xo.html
That's the idea, yes.
We do want inflation to go down.
Unless you are an owner.
How are you going to force companies that own rental properties to decrease rents.
"Shelter" is expensive because government has destroyed free market housing, and used low Fed interest rates to promote the richest acquiring ever more assets that drive the costs up while regulations make new housing hard to build. Government spending and price controls in a command economy is the source of these problems.
This video is about the US, not your country.
@@spacetoast7783 The United States does not have a free market when it comes to housing. Most counties use zoning regulations to ban homeless shelters, low-income housing, apartment buildings, mixed used zoning, and more. A country with free market housing would be Japan, because housing prices follow inflation, instead of outpacing it.
@@peach7469 I know that. Why are you telling me this?
@@peach7469
Is that why Japan’s cost of living is skyrocketing, which is why so many workers are working 80 hours a week?
Again with the “free market” belief.
Smh just say MONOPOLY.
So zillow does a better job at checking the market than the government
Just increase the sampling times. In Australia were tracking inflation monthly now instead of quarterly to get a better bearing on where were at.
Housing is by far my biggest expense and most important thing for inflation.
This is just ridiculous. Publishing this video now, trying to explain in advance why inflation numbers are going to be high. It was obvious to anyone that rent prices were going up. If I signed my lease today, it would cost me 25% more than year and half ago. Lots of people are forced to stay in the same place, and if moving out for a better job, all that extra money is burnt with the increased rent. Plus 1/3 part of CPI should be obviously revised. With such drastic home and rent price increases in the last few years, I haven't heard about same salaries growth... Title of this video is painfully truthful - it's all just numbers for the fed, and they can play and manipulate them as they desire.
Companies and people that own rental properties can charge as much as they want, if that upsets you, then you should move to a different country, because we have a capitalist system in the US
@@robertbelardo7087 Everyone has a capitalist system, and that's because of the US. We are straight up in robber baron times now.
I hope this channel never ends and keep spreading happiness ❤️
WSJ is controlled state media, broseph.
Yeah but a few months ago when inflation was high, shelter was skewing it DOWN
Why is shelter inflation lags only being reported (on many financial videos) when inflation is high not when it is low?
Because rents are largely inelastic due to the demographics of people who rent largely
0:15 The Bureau of Labor Statistics (BLS) is a federal agency that collects and disseminates various data about the U.S. economy and labor market
1/3 of market basket is shelter/ housing.
0:50 trickiest and hold so much weight in the overall index.
1:40 prices that change relatively infrequently 很少
2:00 report on a staggered schedule. 交錯的時間表
2:50 OER, owners' equivalent rent: the price an owner would pay to rent a comparable home.
3:40 Former director of the congressional budget office.
What kind of ppl can afford a house in the us with this high inflation?
Rich people
Greedy speculators trying to pass the cost onto renters this is why we need rent control
The money print owners or those who already own their houses. They then use buy 1 get 2 houses as part of a loan once the loan sharks are fed.
⅔ of Americans own their home.
Engineers and doctors lol
Why not look at market rents then to avoid the lag?
Print more money, 2020 make the rich richer and 2022 make the poor poorer. FED & leaders Incompetence is why we are here.
I wonder why housing and shelter prices are sooooo high. I guess we'll never know, but I think the Fed is doing the right thing.
Question: if housing is such a large component of inflation and the fed's primary tool to control inflation is increasing prime rates, and subsequently borrowing rates throughout the economy, dosen't that make financing real estate more expensive and consequently drive up rent? Clearly I am missing something here, or forgot something from econ class eons ago...appreciate any clarification.
When borrowing rates go up, demand for houses goes down, which means prices decrease.
Love The Video
Every person who can’t afford a home due to rates becomes a tenant who drives up rents. It means another homeowner who doesn’t want to sell because they locked in a 30 year mortgage at 2.50%. Hard to imagine the fed doesn’t understand that the tool they are using to bring down inflation is making it worse.
Landlords are using rising rates as an excuse to raise rent.
Funny how the Fed didn’t tackle housing inflation for years as our home prices were skyrocketing. I watched as my home price was going up $5k a month for a few years. Not hard to see this is inflationary as buyers got loans for 2% rates.
Make housing a bad investment!!! Housing should be the most volatile investment there is!
This is the reason why the Fed often overshoots because instead of looking at forward data they're looking at past data.
They do have forward projections based on time series models.
I am on flexible rate on my mortgage. Each time they raise the base rate, it inflates away my disposable incomes.
I NEVER take an adjustable rate loan.
@@lincolnkroll fixed rate is 300% the flexible rate.
I took the 50-50 option. Half on fixed and the other variable or flexible rate. That is the gamble one can bet on. If the rates go up, only half of your loan will be affected. But if the rates do down, your will pay more on your fixed rate portion.
@@WalkOverHotCoal They never go down... Read the fine print.
@@WalkOverHotCoal There is a lot to be said for security and peace of mind. If the rates go down, refinance.
Skewing inflation numbers, or causing inflation?
Build more housing. That's the only solution, but it's a complex problem with backwards tax incentives and overly restrictive housing codes and zoning laws
I have prepared a full page advertisement on American gun culture, will you publish my ad WSJ?
Housing is not that hard to measure. Measure rents instead of some voluntary number that amounts to garbage. Yes, rents are going up, that happens when you lock landlords down for a couple of years. On the flip side, a lot of Americans don't do what they need to in order to own homes and would rather rent so unfortunately they wind up paying rent for long periods of time, much longer than they should.
why housing expensive when there are no one to buy them?
No one to buy? My dude, most major metros have vacancy rates under 5%.
Rent is up 50% in a yr
You can’t force landlords to reduce rents. So you have no choice but to move out and find cheaper alternatives.
This is why we need to ban 2nd home ownership.
Why must tenants be forced to be landlords’s cash cow?
Detroit doesn't have any houses for sale really..all the mayor builds is affordable housing not houses that are affordable..Michigan can't keep building buildings for low income and expect to reap any economic benefits..a woman with 3 kids should not be in an apt..rather an affordable house..build more houses,collect taxes..money for the city..mayor duggan
1:35
My opinion, Inflation is another word for GREED. Inflated prices means more 💰💰. When the war in Ukraine started. Everything has gone up. 1st to go up was oil/gas then we know what has happened after that.
Right. If no one's wages are going up and the prices are.... then where is all the money going?
Did greed just start this year?
@@jaybartgis5148 Wages are going way up. I don't understand the point of your hypothetical.
Way longer than a year Space roaster. Greed has been around since human existed.
@@meyou9176 Oh okay. You should tell that to yourself.
So critical data the FED counts on for their policy cannot be trusted at all.
No wonder people are so concerned that the FED may not know what they are doing.
But it most important cause majority needs house to live
CPI numbers have been fluffed for years. If we use the same CPI calculator of the 1950’s now CPI is higher.
I'm glad we're using more-accurate numbers now too.
Money printing is the only factor contributing to this massive inflation!
USA export their inflation. Money printing strengthen the dollar because it's used to pay debts already in place. No money printing solve that the debts are increasing when printing money except by directly target the one in blame. The bank making too many loans to irresponsible people.
Let’s go joe!
th-cam.com/video/XYTgFxwtTDE/w-d-xo.html
If the fed did its primary job in the first place - control the money supply and not allow congress to increase our balance sheet by 4 trillion…they wouldnr have to play these games with interest rates.
I have learned in recent months is to remain calm, especially when it comes to investments in cryptocurrencies. Learn not to sell in a panic when everything goes down and not to buy in euphoria when everything goes up. i advise y'all to forget predictions and start making a good profit now because future valuations are all speculations and guesses. The market is very unstable and you can not tell If it's going bearish or bullish. while myself and others are trading without fear of making a loss others are being patient for the price to skyrocket, i would say trading has been going smoothly for me, I started with 1.3 BTC and i have accumulated over 7 BTC in just three weeks, with the trading strategy given to me by expert trader Kennet Gibbs
I need to start investing…..
You can reach him on tel
@Kennetgibbs_bch
Most investing mistakes and losses usually occur when you invest without proper knowledge of the market. I was able to recoup my losses with him. I'm glad to know that many have already benefited from it.
Encourage building more shelter. Loosen single family only zoning near jobs and transit so homes get built where people can get to work and they’ll buy the homes.
Within 100,200 views!
Inflation does not have to run on for10 more years. The reduced level of Domestic Oil production, and lack of Gasoline refineries in this country is at the root of the problem. We haven't built refineries in this country for 20 years. That is restricting the supply on gasoline artificially keeping prices high. High oil prices goes into everything; Plastics in cars, furniture, Diesel fuel, jet fuel, farmers fuel, fertilizer, rent, home heating, electric power companies the rely on natural gas. This is a manufactured crisis, and the American people need to protest at the ballot box in November elections, and 2024 elections. Unless are really dumb, you should not be voting for Democrats. To save your standard of living, and future, vote Republican in every office, and school board across the United States. My family voted Democratic for over 50 years, but this Democratic Party is not the same party. It has a lot of control the world globalist. If they don't cheat in the election, we can turn this all around.
US Domestic oil production is at all-time high though. You must not be American.
The shelter index doesn't make any sense, think about this. If the Fed raises interest rates (to curb inflation) , mortgage servicing costs increase (for landlords/investors), thus they must raise rents to combat the high interest rates. Therefore the Fed's actions would have an opposite affect, more investing tips on my channel. 👍
Exactly, the cost of acquiring the capital to buy housing increases, therefore fewer people can afford to buy it. Thus, housing prices go down to account for it.
“Owners Equivalent Rent”: absurd idea
It would be fine if they were able to calculate it accurately every month. They need to fix that
I pray to God for the wellbeing and happiness for everyone in the Global World based on Friendship, Mutual Understanding, Peaceful Coexistence,Non Violence And Justice For All.
Buy stocks now. Companies that have been around for a long time has good prices for their stocks 👍
Nice WA
Please vote Democrat this November and stock values will continue to tank further, making great stock prices available?
Great stream, as always. I appreciate the level-headed approach you take to the news and the markets.. More emphasis should be put into trading since it is way profitable than hodling. Trading went smooth for me as I was able to raise over 10.2 BTC when I started at 4.5 BTC in just few weeks implementing Patricia Reo daily trading signals and tips.
She all about the knowledge and everything bullish. Her strategy helps me maximize my income.
Her strategy has been helping a lot of traders/newbies out there, with her program i was able to recover my losses from the crash so swiftly.
Pls, how do i get Patricia ?
....
that's her hAndLe. get more info from her… .☝☝☝
#rubbish newspaper the wall Street
#rubbish newspaper the wall Street