clint f. Loc: Priest Lake Idaho, Spokane Wa

After talking with a friend who teaches statistics and economics to college kids I am firmly in the “I don’t trust the government inflation figures.” It’s a shelll game.

Longshadow Loc: Audubon, PA, United States

Yup, paid ours off 10 years early that way.

Longshadow Loc: Audubon, PA, United States

One can prove anything with statistics.
It simply depends on how they are presented.

DirtFarmer Loc: Escaped from the NYC area, back to MA

When I was a kid I wasn't really tracking interest rates but I have the impression that they were around 5%. That's what the banks were paying on savings accounts.

When I bought my first house the interest rate was about 8.5%. The mortgage was about 1 year family income.

When I bought my second house the interest rate was 14.875%. The mortage was about 1 year family income.

When I bought my third house the interest rate was about 3.5%. The mortgage was about 1 year family income but we had enough savings that we paid it off in a year.

Note that the family income increased through the years because of inflation.

Now I'm looking for a new house. Have enough cash that in ordinary times we could do it without a mortgage but the house prices have outstripped our cash pile. We have to find a location where prices are reasonable.

burkphoto Loc: High Point, NC

Since my wife and I have invested well all our lives, we're in the blue pie — but with returns on investments, not wage gains. If you have grandchildren, give them a copy of "Rich Dad, Poor Dad." It will help them avoid the issue of inflation altogether.

From little acorns grow mighty oaks.

In time of war, prepare for peace. (…metaphorically speaking. I'm not talking about conflict!) Save for a rainy day.

As an economics major, I see this economy as strong and growing. As inflation cools, interest rates will cool with it. The trick is for the Fed to release the brakes at just the right rate to balance inflation and growth and employment.

Unfortunately, we went through a LONG period of low interest rates, due to the Fed dropping them to near zero in the last major recession. The cost of borrowing money was cheap, to encourage spending. But then Covid hit. Lockdown caused pent-up demand. Stimulus money flooded the economy with dollars. Once lockdown ended, demand sky-rocketed, driving up prices and stymying supply chains. When demand is high, and people have money, the supply chains choke, and prices go up. That's inflation. About the only tool the Fed has to lower inflation is to raise interest rates on loans to member banks. Member banks raise consumer and business loan rates, and people reconsider their spending. It's painful, but there isn't a known-to-be-better solution.

The economy is a collection of BILLIONS of small and large forces. It takes time for changes to take effect. But we're recovering nicely, without that recession or hard landing many journalists and a few politically motivated economists predicted. Thankfully, most consumers haven't panicked.

Remember, BAD news sells advertising. GOOD news is quickly ignored. You want to sell a product or an idea? Create a harm you say you can solve. About a third of the people will fall for it, every time, so long as you keep repeating that fearful thing...

mr spock Loc: Fairfield CT

I don't believe ANY of the numbers issued by the government whether from Republicans or Democrats. It seems the published numbers are frequently quietly "adjusted" at a later date without much fanfare.

FreddB Loc: PA - Delaware County

ONLY 44%!?!?💩💩💩

Longshadow Loc: Audubon, PA, United States

Seems like they'll tell you more of what one wants to hear as opposed to reality.
Either that or to make them look good.....

clint f. Loc: Priest Lake Idaho, Spokane Wa

Lies, damned lies and statistics is an age old axiom. P.S. Look at the stock market today if you want your day ruined.

Longshadow Loc: Audubon, PA, United States

Ouch.

Well, it kept going up.....

tramsey Loc: Texas

I don't fit in any of those categories either. But I remember my dad looking at the consumer index and laughing many times he said, "more political BS.' I tend to agree with him

SteveR Loc: Michigan

Have you seen how the latest inflation report and the expected impact it will have on the Fed affected today's markets? And, perhaps, your portfolio?

burkphoto Loc: High Point, NC

If the Fed burps when it sees something it doesn't like, Wall Street takes a crap.

Of course, they were strunk and droned on the thought that the Fed MIGHT lower rates... which is why the market had a party a couple of days ago. Now reality is setting in with a hangover.

This is a predictable cycle... inexperienced investors are sheep. Institutional investors are grabbing up shares at bargain prices today.

BUY when the market is down. SELL while it is still going up. Easy to say, hard to do. Which is why I don't generally worry about it. The "iron stomach" gets the long term rewards.

robertjerl Loc: Corona, California

A few times when the month's bills came out on the light side, I have made an extra $500 or $1000 payment on the principal.

robertjerl Loc: Corona, California

Most attribute that to Mark Twain, but he said it was Disraeli. Many historians say they can't find any real proof Disraeli ever said it.
So it was probably some government worker, banker or professor whose name no one knows unless they are strolling through an old cemetery reading headstones.