The Stock Market Is Not The Economy Thread II

[archibaldcrane]

Hey guys so I know nothing about banks in general but I wish to check/ask one thing. In the UK, Chase bank, apparently america's biggest? owned by JP morgan
So they operate in the UK as Chase, online only bank; I got about 3 months pay cheque in there as an emergency fund since they offer good interest rates for keeping money there. Not really knowing exactly what happened besides this silicon bank going down, how likely is chase going to be affected? Especially outside the US?

Just in case someone had some better knowledge than me so I can have foresight to move money out of there back into one of the UK banks if needed haha

Going to sleep now as it's nearly 3am but i'll poke my head back in here tomorrow. Sorry i know it's not share/stock talk but people are are mainly US here so I think it's the best place to ask for a very quick opinion!

Chase will be fine

[The Stig]

Great thanks :D

Back to lurk!

[Qalbert]

https://twitter.com/chimeracoder/sta...62000853331969

[6souls]

Second, they picked what to invest in... that is a gamble.

https://twitter.com/balajis/status/1...556917760?s=20

[Spicyryan]

How many times do we have the learn the lesson that high interest rates don't magically squash inflation?

[Ayn]

That implies lessons were learned.

[kuronosan]

How many times do we have the learn the lesson that high interest rates don't magically squash inflation?

THINK OF THE NUMBERS

[Zealot]

Bro listen, one more point bro, listen, just one more point and the ship will right itself bro, you gotta give us just one more point.

Sent from my SM-N981U using Tapatalk

[archibaldcrane]

https://twitter.com/tomgara/status/1...HJcbTKadw&s=19

[Meresgi]

How many times do we have the learn the lesson that high interest rates don't magically squash inflation?

Chapo Traphouse had an economist on last episode who was talking about this and referencing that during Nixon's admin he basically just told companies to cease raising prices and labor unions to cease raising wages or they would get what's coming to them. We also squashed inflation leading up to WW2 with ration cards and other shit, etc etc. His main point was that nowadays all we think we can do is raise interest rates but there are numerous other methods out there, we're just too fucking incompetent and corrupt to seek other methods.

[Andalusian girls]

the runaway inflation (and stagnation) of the late 70s was largely ended because of Paul Volcker's monetary policies heavily dependent on a massive interest rate spike in the early 80s.

it also helped affect a bad recession (along with the energy disruption of the Iranian Revolution) so not quite daisies but it is the most famous example of higher interest rates squashing inflation. fairly simple macroeconomic theory put into practice, you ease upwards inflationary pressure by siphoning up some money and retarding the growth of consumer spending. but like all things it is a tight-rope walk, some kind of utilitarian calculus needed to see which course is more damaging in the aggregate. Fed always trying to (and often unsuccessfully) walk gently between the extremes of high inflation gutting the economy and spiked interest rates gutting the economy.

[Spicyryan]

Chapo Traphouse had an economist on last episode who was talking about this and referencing that during Nixon's admin he basically just told companies to cease raising prices and labor unions to cease raising wages or they would get what's coming to them. We also squashed inflation leading up to WW2 with ration cards and other shit, etc etc. His main point was that nowadays all we think we can do is raise interest rates but there are numerous other methods out there, we're just too fucking incompetent and corrupt to seek other methods.

That sounds suspiciously like Richard D. Wolff. My favorite is when he pulls the "Janet and I went to the same classes, in the same school, with the same professors. So I don't know how these things haven't occured to her" line.

[Andalusian girls]

Chapo Traphouse had an economist on last episode who was talking about this and referencing that during Nixon's admin he basically just told companies to cease raising prices and labor unions to cease raising wages or they would get what's coming to them. We also squashed inflation leading up to WW2 with ration cards and other shit, etc etc. His main point was that nowadays all we think we can do is raise interest rates but there are numerous other methods out there, we're just too fucking incompetent and corrupt to seek other methods.

you would do better not to get your theory from a cum-based podcast but Nixon's inflation was caused by booming 5% GDP growth, and in fact whatever inflationary controls he instituted on the economy were direly insufficient as the 6% inflation of 1970 was 9% by 1973 and 12% by 1974, and the pre-World War II period was marked by huge inflationary and deflationary periods as the economy yo-yo'd between collapse and booming recovery. neither situation is especially applicable to today.

[archibaldcrane]

That sounds suspiciously like Richard D. Wolff. My favorite is when he pulls the "Janet and I went to the same classes, in the same school, with the same professors. So I don't know how these things haven't occured to her" line.

Don't worry, he ran that back on the pod too

[Spicyryan]

Don't worry, he ran that back on the pod too

I listened to a few of the originals of Chapo to see what the buzz was about. It's alright, more entertaining than informative. I prefer commie shit like The Deprogram, Rev Left Radio, Proles of Roundtable, etc.

[Meresgi]

you would do better not to get your theory from a cum-based podcast

They don't waste any loads!

Their SVU episodes are probably the best i've listened to.

[Andalusian girls]

... i love SVU

[Andalusian girls]

perhaps i've judged too quickly

[Tyche]

Anecdotal, but I bought my house when the market was an absolute shit show, house prices were overpriced and would be on the market for about a day, if they even hit the market...but interest rates were 2.5%.

Feds raised rates, mortgage interest rates spiked to 6%. I expected home values to plummet.

Nope, home values in the area are about 7% higher than when I purchased 13 months ago despite interest rates doubling. Great for me. My kids are fucked. And I guess I'm never moving.

[Spicyryan]

... i love SVU

We all have our guilty pleasures, I suppose.