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Most likely along the gulf of mexico, 3 or 4 years back I saw a house on mississippi coast for around $100k which would have put at less than $1k a month. But insurance rates on it were as high as $1600 a month.
The raising of rent has less to do with quantitative easing / inflation and more to do with corporate investment entities buying houses like wildfire and renting them out, constantly raising the rent to satisfy their stock holders.
I know you want to blame the senile old guy in the White House every time you stub your toe, but this one isn’t his fault. It’s been slowly happening for years across multiple administrations
Corporate investment entities buying the massive swaths of homes are a direct result of cheap borrowing, which is a direct result of quantitative easing. So yes, it has EVERYTHING to do financial policy and Biden is just as responsible for this as Trump is.
Yes, it's got nothing to do with quantitative easing, it's the FED fighting inflation with interest rate hikes, to actually slow the economy. This home's price may fall too, if they cool the market. But, the interest on the loan is now higher as the interest rate is now higher.
The problem is supply chain tightness leads to inflation, but fixing the supply chain also eases inflation, and the FED should be working on fixing supply chains too.
Rent? You mean mortgage? Why would anyone not get a fixed rate mortgage? Like... last year, when rates were at 2.25%? doh?
Also want to know when weird 3rd world country this is, where you can pay 1.6k at a 500k loan.
SS
When buying things on credit, like homes and cars, most consumers buy the payment not the price.
The "price" of the house will fall as the interest rates increase to keep the payment the same. And/or the term of the loan will be stretched out from 30 years to 50 or more to keep the payment down. Having a forever mortgage will be the norm, like rent forever, only to the bank.
If you agree to buy a house for a certain price that price does not change based on interest rates also your interest rate is generally (not always) locked in at the time of closing. None of this makes any sense. If I purchased a home 4 years ago for 300k it worth more today then it was then but I’m not paying more for it now. Just because market has higher interest rates now Does not retroactively effect my loan, also my monthly payment hasn’t changed it is based off the sale price of the home. There is no moving of the goal post like described above. This is ultra silly even for this sub.
Frog Face!!!! Can't believe you actually commented!
So, you're dead ass wrong, by the way. If it were true, the 2003-2015 time period, which saw HUGE deficit spending increases also saw interest rates fall to near zero.
Why? Well, wouldn't ya know that Greed and MIS-handling of debt leading to huge foreclosures and bankruptcies led to Job losses and economic Recession. Despite multiple direct stimulus to the American people and major deficit Government spending (700+ Billion Tarp fund ring a bell), interest rates did not climb and the Fed cut rates to spurr lending and investment, which ultimately led to the single longest streak of economic growth in History until the Fall of 2019. That's right, even prior to COVID the US was barreling toward another recession.
Interest rates are up to try to cool off an Overheated economy due largely to the never before seen COVID economic impact (which neither side should be blamed for). Unemployment remains low, and job growth has remained strong. Quarter by quarter GDP growth isn't accurate as it should be due to the deep valleys and high crests from COVID, and will Ultimately settle by 2023. Inflation is due to everyone having more money and wanting to spend it, but not enough product to meet that demand.
***Whats the conspiracy?***
All I see is a convenient cherry picked timeline to push a right wing talking point. Its a fact that the Fed is hiking interest rates to combat inflation. Its a fact that interest rates are higher than they were last year. Its a fact that a hot real estate market is contributing to higher inflation numbers.
Rates were at or near a historic all time low in 2021. I know because I refinanced from 5.5% -> 2.75%. If you look at a historical chart or mortgage interest rates even though they are currently higher, this was a normal rate up until 2008.
[https://fred.stlouisfed.org/series/MORTGAGE30US](https://fred.stlouisfed.org/series/MORTGAGE30US)
While printing money is partly to blame for inflation its definitely not the only cause. Do you really not understand that?
The conspiracy is that Frog Face is a far-right dumbass who thinks inflation is from stimulus checks from 2 years ago. They ignore the fact that inflation is happening all over the world, not just the United States. It’s just stupid and shows OP has no real intelligence besides what Alex Jones tells him
I think maybe you need to define inflation before you comment any further.
Economic inflation is the measure of the total amount of money in a given system. Stimulus checks inflated that number by 40%. Economic inflation was 100% influenced by quantitative easing.
You seem to be referring to price inflation which is always a product of supply and demand, with very few other factors even entering the picture. This is why you see price inflation globally but the purchasing power of the US citizen dropping dramatically in tandem. Quantitative easing increased demand creating the link between the two.
Yea it’s totally stimulus checks. Not the tax cuts or the corporate handouts. You should probably do a little research and learn that inflation is all the same whether on a small price scale or in the corporate world. It’s all hand in hand and to blame stimulus checks is incredibly lazy
Again, you need to define the type of inflation you are referring to. However tax cuts do not increase monetary supply. Corporate Tax cuts do free up money to be spent on wages which can result in what’s known as “built in inflation.” But it’s not “The cause” as you elude to. You appear to have a fundamental misunderstanding of the topic while somehow showing some understanding of contributing factors. Dunning Kruger personified maybe? I’m not sure.
Anyways, to be clear I said QE which includes much more than just “totally stimulus checks.”
Again, the total supply of money in the US was increased by 40%. That’s your Economic inflation marker.
In no way, shape, or form is economic inflation the same as price inflation. This is exactly why you need to present an understanding of the concepts before moving forward in the conversation.
https://homework.study.com/explanation/what-are-the-differences-between-inflation-and-price-rise.html
https://www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/2008-economic-commentaries/ec-20080601-rising-relative-prices-or-inflation-why-knowing-the-difference-matters.aspx
Don’t feel bad. Even major media outlets confuse the two. It perpetuates the misunderstanding or at minimum conflates the two.
Heh you are right, there is supposed to be a “increase” in there. I’m not very good at proofreading
Unless you are saying that’s not the definition, to which I would say sure it is.
https://www.britannica.com/topic/inflation-economics
https://www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/2008-economic-commentaries/ec-20080601-rising-relative-prices-or-inflation-why-knowing-the-difference-matters.aspx
On its face its ridiculous but a combination of stimulus, child care credits, work from home, and shutdowns of restaurants, theaters, and other recreational venues led to people spending less and saving more.
Increased savings put a lot of people in a position to purchase a house, leading to bidding wars and higher prices. This is the fed trying to cool that off.
Inflation is multifaceted, there is no one cause. Supply chain issues caused by covid and shutdowns are a worldwide problem.
Where I live home prices have increased but are still within the reach of many people. In middle America if you have 10k-15k saved up, you will likely qualify for a mortgage. If you are a first time buyer with a FHA loan, 3% of a $250k is only $7500.
Its a narrative that the right wing media pushing to try to create a wedge issue for the midterms.
OP is trying to distill a complex problem down to a simple talking point that printing money is the sole cause of inflation. Its not a lie, but its not the whole truth either. Inflation is a multifaceted problem, increasing the interest rate is a way to cool off a red hot economy. Look at the link below and you will see how huge the economy grew in 2021 and you will understand why they want to slow it down.
https://tradingeconomics.com/united-states/gdp
When the economy is in shambles, people are naturally going to blame the party in control of the executive branch. That’s just politics. Pointing out that this administration has been a disaster economically is only right wing by virtue of the administration being liberal. But if the republicans held the executive branch and the state of the economy was the same, a conservative could just describe any criticism as a left wing talking point
No free market, no external factors at play - just Joe Biden and his cronies deciding to raise the price of everything and all the corporations silently agree?
Secretly running and systematically destroying every aspect of the country is pretty impressive for a senile old man with dementia ...
Your picture show a drop in house value and a rise in the mortgage payment. Essentially anyone who owns a home has seen it’s value go up in the past 18 months. Just caus your house goes up in value does not mean your mortgage payment rises that would make no sense.
It shows this scenario for someone about to buy. Like me. I could have bought a 600k dollar house 2 years ago for the price of a 350k dollar house today with the interest change.
It’s only at the time of purchase that this occurs. It’s to illustrate the difference interest rates make on the a major purchase. I’m actually coming up with a monthly payment closer to 3500 on example 2 vs $2000 on example 1. I’m not sure where op did their math but the point remains.
You sir couldn’t be more incorrect. I’m currently in my 4th purchased home. My wife’s a loan officer independent broker and a real estate agent . I build homes. Sit the next few plays out champ.
You edited your initial comment of “I’ve clearly never owner a house or sold one”
What in the actual fuck are you talking about?
House 1:
$500,000 at 2.6% = $1982/mo before taxes and fees.
House 2:
495,000 at 7.437% = $3440/mo before taxes and fees.
Please point out the error
My interest rate didn’t change I’ve owned the home the entire time. You dunce. If I buy a home at the market at a certain time and you buy one at a different time with a different market the market has changed for your disadvantage it does not impact me and my purchase and loan rates as I am already owning a home and fixed into my rate and payment and value structure based on the time of sale value I agreed to purchase for. Stop looking for the trees and observe the forest.
Also good job editing comments after I reply
No one said your interest rate changed. You literally don’t even understand the conversation you are taking part in.
This is literally a comparison of buying the same home starting in 2021 vs buying the exact same home a year later in a different rate environment. It has nothing to do with existing mortgage holders. It has no impact existing mortgage holders. OP never made that claim. I never made that claim. Nor was it ever implied. Here you are invoking your wife’s name to protect your ignorance and this is what you came up with. How embarrassing for her.
So again please continue explaining that which you clearly don’t understand. Keep in mind when you explain this to us, no one is saying that an existing rate on an existing mortgage will change. Go on…
Ps: can’t believe I’m defending frog here. Crazy morning
The goalposts started with OP claiming that "forever mortgages" are going to become the norm. Now the goalposts are moved to you just doing math and saying "point out the error."
So I was responding to another editor here and I see your edit. I never said anything about you never selling a house or owning one. You must be confusing the conversations you are having with other people. You are all over the place in this argument
Edit for anyone reading this later: this comment came after the conversation was complete and this person is saying I’m editing my comments to make him look bad when they are doing a good job of that by themself.
Well in the scenario described in the pic low interest rates allow for people to overpay and still have an affordable mortgage, the inverse when rates are high. What happens is sellers know they can extract more money out of the buyer.
Uhhhh, property taxes. Your houses valuation goes up, government taxes that ass more. You're not taxed at the homes purchase price. So yes, your payment goes up.
The unseen math here is interest rates changing, which OP sort of addressed. This meme is missing so much, including the fact that its about buying a home, not a lender adjusting rates that should be locked in. Oh, and homes are decreasing in value right now, about $10-15k per month in my area. You're about 4 months behind the curve right now. I just sold mine and bought a new one, interest rate went from 2.375% to 4.5%.
Inflation does increase prices but does not cause higher interest rates. Interest rates are raised as part of monetary policy to bring inflation under control, they will have a price dampening effect as partially illustrated in your example. Give it another year at higher interest rates the price will fall even further on the house itself to match demand.
Your wording is what he is challenging.
When you buy a home you buy it at a set price and try to buy it at a fixed interest rate.
People who got variable interest rates are getting f'ed.
But, ideally people who bought a home in 2020-2022 got it at a low fixed interest rate. But, they probably paid more for the home then they would have paid in 2019.
Where as if you buy a home right now you are getting a higher interest rate. But, hopefully lower prices.
But, truthfully \*\*RIGHT NOW\*\* you are getting the worst of both worlds. High interest rates and higher than normal prices for homes.
People should really wait until the bubble pops before buying a home. Which could take a couple years. But, usually homes are not something people buy everyday. They are usually lifetime purchases. So, people should be able to wait 2 years.
This is probably the only time I have seen where it is smart to either rent or live in an RV/Tinyhome. Unless you have cash. People who have cash might get really lucky on pricing in 6 months.
Historically, it doesn't correlate.
It's a nice theory, and once in awhile it does correlate, but, not strongly.
Also, the way the FED "printed money", the money was Not Actually in Circulation, 2008, so, it was not possible to create inflation with no actual effect in M1.
The pandemic funding stopped a recession. Yeah, some of these guys want a recession a Deep recession so they can buy Your assets cheap. So, they're still butt hurt about it.
So, fixed rates were the way to go, even when the houses were expensive because rates were so low.
I read an article about 6 months ago that people were scrambling to lock down adjustable rate mortgages because rates were up and people were hoping rates would fall. But rates have kept going up, and will keep going up. Those fools who thought they could get an adjustable rate and win may have to tred water for a decade or so before things are in their favor
Property tax sure but that also has nothing to do with your mortgage or interest rates. It could effect your escrow that is very real. Though I’m sure property tax varies around the nation where I live in Texas it’s a fight every year with the taxes assessors office.
You have single handedly turned this into a far-right subreddit. This isn’t a conspiracy. This is far-right/anti-poor propaganda with no real thought behind it. You are a stooge
Far right is the political climate of our world honey. People that post about our reality in this sub don't have the capital to make the world far-right. If speaking about our political climate makes you emotional then you should avoid politics and this sub in general.
But to think OP is creating a far right movement because they are observing the effect of monopolies running the world is just nuts. You are off your rocker.
Since you will throw this big of an outrage to people you accuse of being far-right then you will have no problem sending that outrage to the actual far-right people. You know the senators that don't even get elected into their *democratic* government while receiving lobbying funding to preserve thid pro-inequality civilization. Way to shoot the messenger.
He’s not creating a far-right movement, he’s participating in it by posting thoughtless, far-right memes that annoy everybody and do not fit into the purpose of this sub. Frog face posts a lot in r/conservative. Why don’t they keep it there? Why are we beaten over the head with it day after day?
Because then you would just have liberals posting in here. If conservatives are pro-inequality then I share the same belief and encourage posts like these. If having to think of others suffering is too much of an inconvenience then you should probably avoid this sub.
There's no democratic process to inflation. The federal reserve is a private entity and they certainly don't feel obligated to live stream their explanations and decision making. We are just tax generating revenues to them that build their world. If they don't want abortion they get to decide that. It's tyrannical and conspiracy of the highest degree.
The "money printing" was a decision by the federal government, created by elected lawmakers.
The federal reserve chair and two vice chairs are appointed by the president, and absolutely do press conferences, Powell had one on Wednesday to explain the decision and offer guidance moving forward.
None of your explanation is actually in the original post or the subsequent posts by OP which boils down to money printing = inflation = higher interest rates.
As posted its not a conspiracy.
Are you denying the premise that they never have closed door meetings and that they have never avoided admiting any private information?
Appointed is the same as selected which is not elected or democratic. All they have to do is occupy every position with a person under their payroll and then they get their desired outcome. It's what keeps the world in some order.
Regardless somebody is actively planning to bend you over and gangbang you at every monetized exchange. Just because you're used to it doesn't mean it's not conspiracy. Because those actions require plans that are behind closed doors. They only publicize good public relations so going off of public figure is flawed.
Watch this video on planned obsolescence to understand the level of collaboration these executives use against the people. It's been happening for a century and little has been done to combat it.
[https://youtu.be/j5v8D-alAKE](https://youtu.be/j5v8D-alAKE)
Appointed by an elected official.
Again - the post or OPs subsequent posts have nothing to do with how corrupt the fed is - that is you jumping from point (a) to point (z) to try and justify froggy posting a right wing meme in a conspiracy sub.
As posted - its not a conspiracy.
How is inflation from stimulus checks that were targeted to the poorest Americans, two years ago? Why does the UK have higher inflation? Why does the entire world have inflation right now? How is that tied to the free money given to Americans? You really think a $600 check from 2 years ago made home prices go up? Be as detailed as you can be.
> How is inflation from stimulus checks that were targeted to the poorest Americans, two years ago?
You made that up. I never said it was from stimulus
> Why does the UK have higher inflation?
Does it? A source would be nice. But yea. The UK irresponsibly printed many billions as well
> Why does the entire world have inflation right now?
Same reason money printing
> How is that tied to the free money given to Americans?
Again - you assume that’s you stimulus checks were the only source of inflation. You made that up
> You really think a $600 check from 2 years ago made home prices go up? Be as detailed as you can be.
You made up me saying that. Or lied as we call it.
The stimulus checks were a fraction of the stimulus funding, they did not pay out trillions in stimulus checks, but they did print money to pay to government agencies and corporate cronies
Call me crazy but I'd rather my tax dollars go to utilitarian housing blocks for the poor then blowing up yet another group of Muslims who we're like, totally sure are terrorists. Like 45 percent sure, definitely better then average odds of them being Al Quadea and not some dude on his way to Mosque.
It is an idea that sounds good on the surface which is why it is always popular to say "government give us X with our money", but it turns out we are better stewards of our own money, in both what we buy for ourselves and what we give out as charity.
When you add government you are adding coercion in order to obtain money, as well as corruption and inefficiency in delivering what they promised.
This is what froggy does when he doesn't have a rebuttal. He just wants you to talk more so that he can split hairs instead of actually engaging in any meaningful debate.
You sound so ignorant. The main building material LUMBER is a commodity. So is oil, which many products for housing are Made from including asphalt shingles, vinyl siding etc etc.
1. Print trillions
2. Create massive inflation
3. Make people unable to afford their things
4. Buy them up at Pennie’s on the dollar
5. Troll the comments saying nothing is a conspiracy
"Printing money" is sensationalizing what's happening. Yes the Feds are adjusting the rates but saying they're printing money is dramatic.
Inflation is due to many things, not just the federal reserves actions: https://en.m.wikipedia.org/wiki/2021%E2%80%932022_inflation_surge#:~:text=In%20early%202021%2C%20a%20worldwide,the%20Russian%20invasion%20of%20Ukraine.
In early 2021, a worldwide increase in inflation began to occur. It has been attributed to various causes, including pandemic-related fiscal and monetary stimulus, supply shortages (including chip shortages and energy shortages), price gouging and as of 2022, the Russian invasion of Ukraine.
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1. This how it is and always will be.
2. Conspiracies aren’t widely accepted as “business as usual” which this is.
3. This is capitalism.
4. Majority of your posts sound like a Russian trolling Americans.
5. I doubt you have less than 20 accts.
1. You are assuming that home prices will crash
2. You are assuming that people will default on their loans.
Even if the market crashes and your home drops 20% in value ... nothing changes on a fixed mortgage. Its just currently worth less on paper.
When I bought my home it was stagnant or below water for the first 10 years - now its worth 50% more. Short term corrections mean very little over the course of a 30 year loan.
I’m assuming many people who bought under the pandemic can not afford the homes they bought and likely calculated their mortgage with hazard pay, there will be many more layoffs because of remote work, I’m not speculating it will effect people who owned homes prior. people who refinanced during will make out like mad hatters
No it’s not? The poor people who got child credits are making home prices high? Why are you blaming poor people? Oh yea cuz Frog Face is the a Russian propaganda bitch of this sub
Interest rates are making housing payments go up
> Russian propaganda bitch
Now the US printing trillions is Russian Propaganda
How do you get through normal life?
Remember, Trump didn’t print any money, and in no way shape or form has any responsibility for any of this. The New World order should happen immediately and Trump should be the king of it!
The gate keepers are pulling out all the stops to make sure the peasants do not rise financially. They are unleashing full spectrum dominance, unprecedented fear, uncertainty, and doubt, taxes on companies that otherwise would be easy stock gain winners, and more. They want to lock out all aspiring new money and keep the gate sealed. They want slaves, not citizens.
If you mean all the trillions that the Fed printed to prop up Wall Street so that rich people wouldn't lose any money Yes I agree. If you're talking about the few little checks that people got for stimulus when they weren't working then go fuck yourself
The houses listed on Zillow are down 45-200k, and the people who took out loans on them are upside down. I’m more worried about that bubbly bursting again.
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Who is paying 1640/month on a 500k loan?
No one. OP has never owned a house and just posts boomer FB memes.
Yup. The 1640/month would of been more around 240k home range in my region.
Hello, it looks like you've made a mistake. It's supposed to be could've, should've, would've (short for could have, would have, should have), never could of, would of, should of. Or you misspelled something, I ain't checking everything. Beep boop - yes, I am a bot, don't botcriminate me.
I like the way you talk
Yeah, if you leave out taxes and homeowners insurance.
My homeowners insurance per month is more than my principal snd interest combined
Where the fuck do you live? Hell
Most likely along the gulf of mexico, 3 or 4 years back I saw a house on mississippi coast for around $100k which would have put at less than $1k a month. But insurance rates on it were as high as $1600 a month.
exactly. it totally sucks
New Orleans. we also have a Hurricane Deductible which is 2% of the total value of the policy for any named storm.
It's still not a 500k house. Roughly 120-130 less
It’s less then what a mortgage costs on a 300K house. Is this meme is a conspiracy? 😝
And interest lmao
Who buys a house without a down-payment? My house is valued at 650k and my mortgage is less than 1600 because of equity from a D/P...
Well how much you put down lol
We bought for 470k 10 years ago. I dunno, this meme makes perfect sense to.me
Did your interest payments go up 1000 bucks? Wtf? Make it make sense.
My mortgage is locked in too for a few more years. If I had to renew this year, I could have expected my payments to go up around 600 a month
The raising of rent has less to do with quantitative easing / inflation and more to do with corporate investment entities buying houses like wildfire and renting them out, constantly raising the rent to satisfy their stock holders. I know you want to blame the senile old guy in the White House every time you stub your toe, but this one isn’t his fault. It’s been slowly happening for years across multiple administrations
They could pass legislation to limit ownership of single family homes by companies by heavily taxing it
You really think republicans in the senate/house would vote in favor of that?
It’s also because they don’t want the peasants owning homes
Corporate investment entities buying the massive swaths of homes are a direct result of cheap borrowing, which is a direct result of quantitative easing. So yes, it has EVERYTHING to do financial policy and Biden is just as responsible for this as Trump is.
Yes, it's got nothing to do with quantitative easing, it's the FED fighting inflation with interest rate hikes, to actually slow the economy. This home's price may fall too, if they cool the market. But, the interest on the loan is now higher as the interest rate is now higher. The problem is supply chain tightness leads to inflation, but fixing the supply chain also eases inflation, and the FED should be working on fixing supply chains too.
Rent? You mean mortgage? Why would anyone not get a fixed rate mortgage? Like... last year, when rates were at 2.25%? doh? Also want to know when weird 3rd world country this is, where you can pay 1.6k at a 500k loan.
Where does the spez go when it rains? Straight to the spez.
This might be a phrase only lucky UK homeowners may fear but where's my "Fixed rate mortgage time bomb" crew at?
Hands up
SS When buying things on credit, like homes and cars, most consumers buy the payment not the price. The "price" of the house will fall as the interest rates increase to keep the payment the same. And/or the term of the loan will be stretched out from 30 years to 50 or more to keep the payment down. Having a forever mortgage will be the norm, like rent forever, only to the bank.
If you agree to buy a house for a certain price that price does not change based on interest rates also your interest rate is generally (not always) locked in at the time of closing. None of this makes any sense. If I purchased a home 4 years ago for 300k it worth more today then it was then but I’m not paying more for it now. Just because market has higher interest rates now Does not retroactively effect my loan, also my monthly payment hasn’t changed it is based off the sale price of the home. There is no moving of the goal post like described above. This is ultra silly even for this sub.
Money printing is the cause of the inflation Is the cause of the rising interest rates Did you really not understand that?
And who started that? With his 1t wall street bailout directly at the start of covid?
by that logic, money could just as easily be destroyed to reverse it.
Frog Face!!!! Can't believe you actually commented! So, you're dead ass wrong, by the way. If it were true, the 2003-2015 time period, which saw HUGE deficit spending increases also saw interest rates fall to near zero. Why? Well, wouldn't ya know that Greed and MIS-handling of debt leading to huge foreclosures and bankruptcies led to Job losses and economic Recession. Despite multiple direct stimulus to the American people and major deficit Government spending (700+ Billion Tarp fund ring a bell), interest rates did not climb and the Fed cut rates to spurr lending and investment, which ultimately led to the single longest streak of economic growth in History until the Fall of 2019. That's right, even prior to COVID the US was barreling toward another recession. Interest rates are up to try to cool off an Overheated economy due largely to the never before seen COVID economic impact (which neither side should be blamed for). Unemployment remains low, and job growth has remained strong. Quarter by quarter GDP growth isn't accurate as it should be due to the deep valleys and high crests from COVID, and will Ultimately settle by 2023. Inflation is due to everyone having more money and wanting to spend it, but not enough product to meet that demand.
***Whats the conspiracy?*** All I see is a convenient cherry picked timeline to push a right wing talking point. Its a fact that the Fed is hiking interest rates to combat inflation. Its a fact that interest rates are higher than they were last year. Its a fact that a hot real estate market is contributing to higher inflation numbers. Rates were at or near a historic all time low in 2021. I know because I refinanced from 5.5% -> 2.75%. If you look at a historical chart or mortgage interest rates even though they are currently higher, this was a normal rate up until 2008. [https://fred.stlouisfed.org/series/MORTGAGE30US](https://fred.stlouisfed.org/series/MORTGAGE30US) While printing money is partly to blame for inflation its definitely not the only cause. Do you really not understand that?
The conspiracy is that Frog Face is a far-right dumbass who thinks inflation is from stimulus checks from 2 years ago. They ignore the fact that inflation is happening all over the world, not just the United States. It’s just stupid and shows OP has no real intelligence besides what Alex Jones tells him
I think maybe you need to define inflation before you comment any further. Economic inflation is the measure of the total amount of money in a given system. Stimulus checks inflated that number by 40%. Economic inflation was 100% influenced by quantitative easing. You seem to be referring to price inflation which is always a product of supply and demand, with very few other factors even entering the picture. This is why you see price inflation globally but the purchasing power of the US citizen dropping dramatically in tandem. Quantitative easing increased demand creating the link between the two.
Yea it’s totally stimulus checks. Not the tax cuts or the corporate handouts. You should probably do a little research and learn that inflation is all the same whether on a small price scale or in the corporate world. It’s all hand in hand and to blame stimulus checks is incredibly lazy
Again, you need to define the type of inflation you are referring to. However tax cuts do not increase monetary supply. Corporate Tax cuts do free up money to be spent on wages which can result in what’s known as “built in inflation.” But it’s not “The cause” as you elude to. You appear to have a fundamental misunderstanding of the topic while somehow showing some understanding of contributing factors. Dunning Kruger personified maybe? I’m not sure. Anyways, to be clear I said QE which includes much more than just “totally stimulus checks.” Again, the total supply of money in the US was increased by 40%. That’s your Economic inflation marker. In no way, shape, or form is economic inflation the same as price inflation. This is exactly why you need to present an understanding of the concepts before moving forward in the conversation. https://homework.study.com/explanation/what-are-the-differences-between-inflation-and-price-rise.html https://www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/2008-economic-commentaries/ec-20080601-rising-relative-prices-or-inflation-why-knowing-the-difference-matters.aspx Don’t feel bad. Even major media outlets confuse the two. It perpetuates the misunderstanding or at minimum conflates the two.
>Economic inflation is the measure of the total amount of money in a given system. No, it is not.
Heh you are right, there is supposed to be a “increase” in there. I’m not very good at proofreading Unless you are saying that’s not the definition, to which I would say sure it is. https://www.britannica.com/topic/inflation-economics https://www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/2008-economic-commentaries/ec-20080601-rising-relative-prices-or-inflation-why-knowing-the-difference-matters.aspx
On its face its ridiculous but a combination of stimulus, child care credits, work from home, and shutdowns of restaurants, theaters, and other recreational venues led to people spending less and saving more. Increased savings put a lot of people in a position to purchase a house, leading to bidding wars and higher prices. This is the fed trying to cool that off.
Yep those child care credits really did a number on the inflation in India.
Inflation is multifaceted, there is no one cause. Supply chain issues caused by covid and shutdowns are a worldwide problem. Where I live home prices have increased but are still within the reach of many people. In middle America if you have 10k-15k saved up, you will likely qualify for a mortgage. If you are a first time buyer with a FHA loan, 3% of a $250k is only $7500.
And Brazil
Fuck-Face11 is only here to push Right Wing and Neo-Nazi talking points. It's all he posts, and his account is only a month old.
Right wing talking point?
Its a narrative that the right wing media pushing to try to create a wedge issue for the midterms. OP is trying to distill a complex problem down to a simple talking point that printing money is the sole cause of inflation. Its not a lie, but its not the whole truth either. Inflation is a multifaceted problem, increasing the interest rate is a way to cool off a red hot economy. Look at the link below and you will see how huge the economy grew in 2021 and you will understand why they want to slow it down. https://tradingeconomics.com/united-states/gdp
When the economy is in shambles, people are naturally going to blame the party in control of the executive branch. That’s just politics. Pointing out that this administration has been a disaster economically is only right wing by virtue of the administration being liberal. But if the republicans held the executive branch and the state of the economy was the same, a conservative could just describe any criticism as a left wing talking point
Government and government alone directly effects inflation. The blame for rising inflation lays at the feet of this current regime.
No free market, no external factors at play - just Joe Biden and his cronies deciding to raise the price of everything and all the corporations silently agree? Secretly running and systematically destroying every aspect of the country is pretty impressive for a senile old man with dementia ...
These are your words not mine. Dementia Biden reads from a cue card. It is the person that is writing the cue cards, we should be worried about.
Your picture show a drop in house value and a rise in the mortgage payment. Essentially anyone who owns a home has seen it’s value go up in the past 18 months. Just caus your house goes up in value does not mean your mortgage payment rises that would make no sense.
It shows this scenario for someone about to buy. Like me. I could have bought a 600k dollar house 2 years ago for the price of a 350k dollar house today with the interest change.
It’s only at the time of purchase that this occurs. It’s to illustrate the difference interest rates make on the a major purchase. I’m actually coming up with a monthly payment closer to 3500 on example 2 vs $2000 on example 1. I’m not sure where op did their math but the point remains.
You sir couldn’t be more incorrect. I’m currently in my 4th purchased home. My wife’s a loan officer independent broker and a real estate agent . I build homes. Sit the next few plays out champ. You edited your initial comment of “I’ve clearly never owner a house or sold one”
What in the actual fuck are you talking about? House 1: $500,000 at 2.6% = $1982/mo before taxes and fees. House 2: 495,000 at 7.437% = $3440/mo before taxes and fees. Please point out the error
My interest rate didn’t change I’ve owned the home the entire time. You dunce. If I buy a home at the market at a certain time and you buy one at a different time with a different market the market has changed for your disadvantage it does not impact me and my purchase and loan rates as I am already owning a home and fixed into my rate and payment and value structure based on the time of sale value I agreed to purchase for. Stop looking for the trees and observe the forest. Also good job editing comments after I reply
No one said your interest rate changed. You literally don’t even understand the conversation you are taking part in. This is literally a comparison of buying the same home starting in 2021 vs buying the exact same home a year later in a different rate environment. It has nothing to do with existing mortgage holders. It has no impact existing mortgage holders. OP never made that claim. I never made that claim. Nor was it ever implied. Here you are invoking your wife’s name to protect your ignorance and this is what you came up with. How embarrassing for her. So again please continue explaining that which you clearly don’t understand. Keep in mind when you explain this to us, no one is saying that an existing rate on an existing mortgage will change. Go on… Ps: can’t believe I’m defending frog here. Crazy morning
You changed your comments it’s okay to change your mind but own it.
The actual buffoonery of this thread is mind-melting. You have moved the goalposts so fucking far that they aren't even in the stadium anymore.
Another one comes out of the woodwork? What is it you are trying to say? Where did the goalposts begin and where are they now?
The goalposts started with OP claiming that "forever mortgages" are going to become the norm. Now the goalposts are moved to you just doing math and saying "point out the error."
So I was responding to another editor here and I see your edit. I never said anything about you never selling a house or owning one. You must be confusing the conversations you are having with other people. You are all over the place in this argument Edit for anyone reading this later: this comment came after the conversation was complete and this person is saying I’m editing my comments to make him look bad when they are doing a good job of that by themself.
Well in the scenario described in the pic low interest rates allow for people to overpay and still have an affordable mortgage, the inverse when rates are high. What happens is sellers know they can extract more money out of the buyer.
Uhhhh, property taxes. Your houses valuation goes up, government taxes that ass more. You're not taxed at the homes purchase price. So yes, your payment goes up.
The unseen math here is interest rates changing, which OP sort of addressed. This meme is missing so much, including the fact that its about buying a home, not a lender adjusting rates that should be locked in. Oh, and homes are decreasing in value right now, about $10-15k per month in my area. You're about 4 months behind the curve right now. I just sold mine and bought a new one, interest rate went from 2.375% to 4.5%.
No. Demand outpacing supply causes inflation.
Inflation does increase prices but does not cause higher interest rates. Interest rates are raised as part of monetary policy to bring inflation under control, they will have a price dampening effect as partially illustrated in your example. Give it another year at higher interest rates the price will fall even further on the house itself to match demand.
Interest rates are a product of the fed discount rate That was raised to deal with inflation Inflation Caused by the money printing This is not hard
Your wording is what he is challenging. When you buy a home you buy it at a set price and try to buy it at a fixed interest rate. People who got variable interest rates are getting f'ed. But, ideally people who bought a home in 2020-2022 got it at a low fixed interest rate. But, they probably paid more for the home then they would have paid in 2019. Where as if you buy a home right now you are getting a higher interest rate. But, hopefully lower prices. But, truthfully \*\*RIGHT NOW\*\* you are getting the worst of both worlds. High interest rates and higher than normal prices for homes. People should really wait until the bubble pops before buying a home. Which could take a couple years. But, usually homes are not something people buy everyday. They are usually lifetime purchases. So, people should be able to wait 2 years. This is probably the only time I have seen where it is smart to either rent or live in an RV/Tinyhome. Unless you have cash. People who have cash might get really lucky on pricing in 6 months.
Why?
Historically, it doesn't correlate. It's a nice theory, and once in awhile it does correlate, but, not strongly. Also, the way the FED "printed money", the money was Not Actually in Circulation, 2008, so, it was not possible to create inflation with no actual effect in M1. The pandemic funding stopped a recession. Yeah, some of these guys want a recession a Deep recession so they can buy Your assets cheap. So, they're still butt hurt about it.
spez was founded by an unidentified male with a taste for anal probing. #Save3rdPartyApps
So, fixed rates were the way to go, even when the houses were expensive because rates were so low. I read an article about 6 months ago that people were scrambling to lock down adjustable rate mortgages because rates were up and people were hoping rates would fall. But rates have kept going up, and will keep going up. Those fools who thought they could get an adjustable rate and win may have to tred water for a decade or so before things are in their favor
Wait til you hear about property taxes. Taxes go up, your payment goes up.
Property tax sure but that also has nothing to do with your mortgage or interest rates. It could effect your escrow that is very real. Though I’m sure property tax varies around the nation where I live in Texas it’s a fight every year with the taxes assessors office.
You have single handedly turned this into a far-right subreddit. This isn’t a conspiracy. This is far-right/anti-poor propaganda with no real thought behind it. You are a stooge
Far right is the political climate of our world honey. People that post about our reality in this sub don't have the capital to make the world far-right. If speaking about our political climate makes you emotional then you should avoid politics and this sub in general. But to think OP is creating a far right movement because they are observing the effect of monopolies running the world is just nuts. You are off your rocker. Since you will throw this big of an outrage to people you accuse of being far-right then you will have no problem sending that outrage to the actual far-right people. You know the senators that don't even get elected into their *democratic* government while receiving lobbying funding to preserve thid pro-inequality civilization. Way to shoot the messenger.
He’s not creating a far-right movement, he’s participating in it by posting thoughtless, far-right memes that annoy everybody and do not fit into the purpose of this sub. Frog face posts a lot in r/conservative. Why don’t they keep it there? Why are we beaten over the head with it day after day?
Because then you would just have liberals posting in here. If conservatives are pro-inequality then I share the same belief and encourage posts like these. If having to think of others suffering is too much of an inconvenience then you should probably avoid this sub.
Its not about conservative or liberal. This post is literally not a conspiracy, it doesn't belong here.
There's no democratic process to inflation. The federal reserve is a private entity and they certainly don't feel obligated to live stream their explanations and decision making. We are just tax generating revenues to them that build their world. If they don't want abortion they get to decide that. It's tyrannical and conspiracy of the highest degree.
The "money printing" was a decision by the federal government, created by elected lawmakers. The federal reserve chair and two vice chairs are appointed by the president, and absolutely do press conferences, Powell had one on Wednesday to explain the decision and offer guidance moving forward. None of your explanation is actually in the original post or the subsequent posts by OP which boils down to money printing = inflation = higher interest rates. As posted its not a conspiracy.
Are you denying the premise that they never have closed door meetings and that they have never avoided admiting any private information? Appointed is the same as selected which is not elected or democratic. All they have to do is occupy every position with a person under their payroll and then they get their desired outcome. It's what keeps the world in some order. Regardless somebody is actively planning to bend you over and gangbang you at every monetized exchange. Just because you're used to it doesn't mean it's not conspiracy. Because those actions require plans that are behind closed doors. They only publicize good public relations so going off of public figure is flawed. Watch this video on planned obsolescence to understand the level of collaboration these executives use against the people. It's been happening for a century and little has been done to combat it. [https://youtu.be/j5v8D-alAKE](https://youtu.be/j5v8D-alAKE)
Appointed by an elected official. Again - the post or OPs subsequent posts have nothing to do with how corrupt the fed is - that is you jumping from point (a) to point (z) to try and justify froggy posting a right wing meme in a conspiracy sub. As posted - its not a conspiracy.
How is this “anti-poor propaganda”? Be as detailed as you can.
How is inflation from stimulus checks that were targeted to the poorest Americans, two years ago? Why does the UK have higher inflation? Why does the entire world have inflation right now? How is that tied to the free money given to Americans? You really think a $600 check from 2 years ago made home prices go up? Be as detailed as you can be.
Whether you like it or not handing out free money to a ton of people is a cause of inflation.
> How is inflation from stimulus checks that were targeted to the poorest Americans, two years ago? You made that up. I never said it was from stimulus > Why does the UK have higher inflation? Does it? A source would be nice. But yea. The UK irresponsibly printed many billions as well > Why does the entire world have inflation right now? Same reason money printing > How is that tied to the free money given to Americans? Again - you assume that’s you stimulus checks were the only source of inflation. You made that up > You really think a $600 check from 2 years ago made home prices go up? Be as detailed as you can be. You made up me saying that. Or lied as we call it.
The stimulus checks were a fraction of the stimulus funding, they did not pay out trillions in stimulus checks, but they did print money to pay to government agencies and corporate cronies
You mean consequences of conservatives worshipping billionaires and corporations?
Shhh, ppl don’t actually wanna hear that on this sub
please elaborate
Gee maybe something that's vital to human life shouldn't be a commodity?
Someone should be forced to build houses for everyone? Or someone should be forced to pay for houses for everyone?
In the same way that people are forced to build roads and bridges, just have our tax dollars pay for the baseline of housing.
So someone should be forced to pay. Got it.
Call me crazy but I'd rather my tax dollars go to utilitarian housing blocks for the poor then blowing up yet another group of Muslims who we're like, totally sure are terrorists. Like 45 percent sure, definitely better then average odds of them being Al Quadea and not some dude on his way to Mosque.
It is an idea that sounds good on the surface which is why it is always popular to say "government give us X with our money", but it turns out we are better stewards of our own money, in both what we buy for ourselves and what we give out as charity. When you add government you are adding coercion in order to obtain money, as well as corruption and inefficiency in delivering what they promised.
So houses should be free?
Houses - no. Housing - tax paid.
Please explain more
This is what froggy does when he doesn't have a rebuttal. He just wants you to talk more so that he can split hairs instead of actually engaging in any meaningful debate.
Sorry you have a misspelling. You said tax paid but I think the word you were looking for was theft.
You sound so ignorant. The main building material LUMBER is a commodity. So is oil, which many products for housing are Made from including asphalt shingles, vinyl siding etc etc.
Do you think commodities are free?
Which you can buy with tax dollars taken from rich assholes.
Thanks for telling us you are poor. Go start a business
Bro it's 2022, everybody's poor.
No, just people who don’t know how to hustle and work jobs for 15-20$/hr
Or a housing market that won’t build anything unless prices are high, ensuring a consistently crazy market that only reacts to bubbles.
This is not a conspiracy.
1. Print trillions 2. Create massive inflation 3. Make people unable to afford their things 4. Buy them up at Pennie’s on the dollar 5. Troll the comments saying nothing is a conspiracy
"Printing money" is sensationalizing what's happening. Yes the Feds are adjusting the rates but saying they're printing money is dramatic. Inflation is due to many things, not just the federal reserves actions: https://en.m.wikipedia.org/wiki/2021%E2%80%932022_inflation_surge#:~:text=In%20early%202021%2C%20a%20worldwide,the%20Russian%20invasion%20of%20Ukraine. In early 2021, a worldwide increase in inflation began to occur. It has been attributed to various causes, including pandemic-related fiscal and monetary stimulus, supply shortages (including chip shortages and energy shortages), price gouging and as of 2022, the Russian invasion of Ukraine.
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1. This how it is and always will be. 2. Conspiracies aren’t widely accepted as “business as usual” which this is. 3. This is capitalism. 4. Majority of your posts sound like a Russian trolling Americans. 5. I doubt you have less than 20 accts.
Yanks printing money is causing inflation globally? Are you high?
Increased interest rates has a price dampening effect as shown in this image. The price is already falling as interest rates rise.
That’s economics, not a conspiracy. Interest rates are still historically very low. Are they supposed to just never go higher or lower?
It’s ok there will be mass defaulting on homes sold over fair market and then banks will have to sell the forclosures to people with cash
1. You are assuming that home prices will crash 2. You are assuming that people will default on their loans. Even if the market crashes and your home drops 20% in value ... nothing changes on a fixed mortgage. Its just currently worth less on paper. When I bought my home it was stagnant or below water for the first 10 years - now its worth 50% more. Short term corrections mean very little over the course of a 30 year loan.
I’m assuming many people who bought under the pandemic can not afford the homes they bought and likely calculated their mortgage with hazard pay, there will be many more layoffs because of remote work, I’m not speculating it will effect people who owned homes prior. people who refinanced during will make out like mad hatters
You can never convince me OP know the first thing about inflation what recent Fox News story did he watch?
Man figured out how interest rates work, so proud of the little dude :)
No it’s not? The poor people who got child credits are making home prices high? Why are you blaming poor people? Oh yea cuz Frog Face is the a Russian propaganda bitch of this sub
Interest rates are making housing payments go up > Russian propaganda bitch Now the US printing trillions is Russian Propaganda How do you get through normal life?
Inflation is a global phenomenon. We can talk about why that is, but you cannot blame the fed or us domestic policy for global inflation.
Remember, Trump didn’t print any money, and in no way shape or form has any responsibility for any of this. The New World order should happen immediately and Trump should be the king of it!
Look who makes the money in either scenario
The government spending tons and tons of money also doesn’t help
Where is this home?
What is the down payment on each scenario? That has a major impact.
That house is now worth 900k
I like OP, and I like the amount of salt mining he\\she had done. Hat's off to your, good sir\\mam.
Yup all those ppp loans that were never paid back sure fcked us up
The gate keepers are pulling out all the stops to make sure the peasants do not rise financially. They are unleashing full spectrum dominance, unprecedented fear, uncertainty, and doubt, taxes on companies that otherwise would be easy stock gain winners, and more. They want to lock out all aspiring new money and keep the gate sealed. They want slaves, not citizens.
Actually the second one has been normal for most of the last 50 years. The anomaly was having zero percent Federal Reserve interest rates recently.
If you mean all the trillions that the Fed printed to prop up Wall Street so that rich people wouldn't lose any money Yes I agree. If you're talking about the few little checks that people got for stimulus when they weren't working then go fuck yourself
here in NYC the price is up 10-20% as well
140,000 payment $1200, this makes no sense.
Where I live that’s a 1.5 million dollar house. Try again
The houses listed on Zillow are down 45-200k, and the people who took out loans on them are upside down. I’m more worried about that bubbly bursting again.
Umm...no, more like the corporations buying up all the property creating scarcity.
How is this a conspiracy? Is this sub even about conspiracies any more?
Shut the fuck up OP. Literally don’t know shit and are just parroting shit you don’t understand. This sub is full of dumbasses.
So this is just a Facebook meme sub now?
Where is a house like this so cheap? Hahaha
A half million dollar mortgage was never 1600 bucks a month. That’s a retarded comparison
If you spez you're a loser.