I did attempt to warn you.
Headline at 8.3% v/s 8.1% expected, 8.5% prior
Core at 6.3% v/s 6.1% expected, 5.9% prior
Now it’s too late and the NASDAQ is down 300. The euro and yen are straight in the shitter, yields are soaring, and equities are cascading without brakes.
We had been priced for perfection. Now we are pricing for sustained inflation over 8%. The notion of stopping rate hikes at 4% is absurd. We’re really gonna have to go all the way.
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Inflation is good. It devalues the assets of the mega-rich, and reduces
the true value of the mortgages debt of the average guy.
And it gets the working class LASTING pay raises.
Put down the bottle RG. You’ve had a few too many. Good for the middle class?
I think you missed that day in class when we looked at wage growth and inflation.
No, I didn’t miss miss the relation between wage growth
and inflation. In the early 80’s most companies gave hefty
cost-of-living increases. My salary DOUBLED in four years.
The inflation went away but my pay raises stuck.
What will this do to shares in the medium term? Dollar may attract international money flows big time. Where does all that money go? Not into bonds, not yet anyway. Shares would be my guess. This may put a floor on, at least, the blue chips. Old school.
War is inflationary.
During war, Uncle steps in front of you no matter what line you are in.
If you really want something; you need to pay up.
I’m in disbelief that anyone would think they’d come in lower. In fact, they may have been much worse, thus fudged?
Daaaaammmmmnnnn
I thought there might at least be some offsetting line items that helped the headline number. I figured we’d sell off either way but holy shit that was a bad print.
Here comes the 100 bps ffr hike.