High interest rate causes house market declining, less people are buying houses. more empty comericial buildings are converted into residential condos wich results in rental declining.After covid, more people are working at home, artificial intelligence technology has eliminated many office jobs, and commercial buildings are vacant and converted into apartments.
With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my $200k savings other than moving in to an RV with my two kids and wife.
You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.
I believe that for the market to normalize, there must be a minimum 40% decline in home prices. It is advisable that you get advice for appropriate portfolio allocation from a knowledgeable advisor if you are unsure about purchasing a home. That's how I've managed to survive for the past five years and accumulate about $1 million in investment returns.
I would be happy to hire someone with a good reputation. How can I locate and thoroughly check them? We started thinking about the concept because we have a family lawyer who has periodically mentioned fiduciaries and we know how valuable they are.
@penultimateh766 Former Australian treasurer Joe Hockey told struggling young people (who can't afford a house) to get a good job that pays good money. He also said that the poorest people either don't have cars or don't drive very far. I'm not making this up.
While that is partially correct, it isn't actually correct. Most people have their net worth tied up in assets, and many people misunderstand the difference between net worth and money when looking at others. Higher interest rates benefit wealth distribution because it makes assets more attainable in the long-term.
@@penultimateh766 bc we want young people to have kids. No one but degenerates are going to breed while renting out a small flat with constant risk of your landlord doubling the price to pay off his own mortgage.
It's almost like this "good" economy only benefits the people who were already wealthy and screwed over anyone who actually at risk. I think it's LONG past time we stopped only looking at raw metrics and instead looked at how everyday people are affected
2007 I bought my home at the peak of the market at a high interest rate, then the crash, then a HARP refinance. For over a decade I somehow made it work. Then, interest rates get below 3% and I refinance. It's friggin crazy I'm finally feeling like my home was worth over a decade of stress.
@@KN-cool I agree that I used an overly strong word. It was hyperbole. But “interesting” certainly doesn’t cover it. There *is* an element of serious fear regarding having to live “on the edge” financially for multiple decades of our lives due to this housing crisis. You want to critique my word choice, fine. But don’t get to tell us it’s not unfair and scary that because of older generations’ greed, we’re going to live in the hardest generation ever to find housing while we’re taxed to pay for their end-of-life care.
Because of high loan rates, the housing market is contracting and fewer individuals are purchasing homes. More vacant commercial buildings are being turned into residential condominiums, which lowers rental prices.Following COVID, more individuals are working from home, many office positions have been replaced by artificial intelligence, and business buildings have been demolished and turned into flats.
What are the greatest options/strategies for avoiding a crunch and maximizing my $200k savings other than moving into an RV with my wife and two children, given that rates are rising at an unprecedented rate in 2023 and that inflation is out of control? Our personal mortgage is now at 7.5%.
You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.
I believe that for the market to normalize, there must be a minimum 40% decline in home prices. It is advisable that you get advice for appropriate portfolio allocation from a knowledgeable advisor if you are unsure about purchasing a home. That's how I've managed to survive for the past five years and accumulate about $1 million in investment returns.
My CFA, ANNETTE MARIE HOLT a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I mean, just look up historic mortgage rates, over the past 50 years or so, and you'll quickly find that the rates of the last decade or so were abnormally low. It kind of reminds me of how I would see people post photos showing gas prices on the same day in 2020 and 2021 and imply that gas prices were low under Trump and skyrocketed under Biden, but they failed to consider that the low 2020 price was overwhelmingly due to low demand from the pandemic and a massive surge in supply from Saudi Arabia during its price war with Russia.
Mortgage rates in the 1990s (supposedly the decade of greatest economic expansion in US history) were upwards of 8%, and towards the start of the decade were trending closer to 10%. My student loans were 8%. People forget that stuff relatively quickly.
@@scarpfish It's natural to "forget" when you were a kid during those times. That's why financial education is key in high school. I'm very surprised it isn't a core subject that Juniors or Seniors have to take. I mean even at least one semester of it would do loads of good to students who might otherwise dig themselves in a hole that they spend the rest of their middle age trying to crawl out of.
@scarpfish Yeah but prices were cheap in the 1990's. Gas was like 1.25. Minimum wage was 3.35. My first place 1 bedroom was 225. Car insurance was 25 a month. McDonald's was like 4.00. Nobody in 90's knew what inflation was. Now you can't make enough because information from technology has enabled people to manipulate things so quickly that the cycles are shorter now. Cycles being people's ability to "keep up with normal wages and their purchasing power." Back in 90's you could work 2 jobs and be considered 3 times richer than a normal person. Now a person has to work 4 forty hour jobs to just stay in a rental place with a old used car with no hope in site. I don't see things getting better due to how the age of technology has really screwed up things due to lightening fast transfer of information. I remember reading how computers do millions of stock trades per second to manipulate the stock market. Well that's just 1 example of "forgotten manipulation." But you get my point. Crime against humanity has become normal and people don't even realize it. Government is completely ignoring it.
I'm still in the glass half empty side because a lot of the world is actually going through quite the crisis right now. It just so happens that USA's spending addiction is prolonging the issue of their finances and actually not coming up with plans on addressing the issue outright or at least start to pay off its own accumulated debt is making the issue bigger and when it strikes it would have massive implications. Just imagine if a citizen asked to prolong their current debt levels forever even when they're dead as the banks would laugh at you for that proposition but when any government does it the institutions lending the money or form the contract bat an eye and sign blindly. I'm also extremely annoyed at the disconnect at the stock market with the actual economy right now and argue they should be a reflection of each other and not be separate entities. This proves that the stock market isn't efficient at all and leverages trends and biases to keep inflating the bidding price of the stock price of certain assets and we're seeing how artificially this is done with leveraged option products. I will always mention that the government can fix this by creating standards on how money is created and what each unit should equate to with some unit of effort. But nope we continue to live through the subjective judgement of how rich people deserve their wealth and because of relaxed regulations without standards as long as you have a lot of money you can go "Rules for me and not for thee" basically.
Spot on about America's spending addiction, we should have checked into the Betty Ford clinic for this habit a long time ago. Our modern "instant gratification" lifestyle, relentless ads/marketing urging us to spend, spend, spend, and services like Amazon, Temu etc. aren't exactly helping, either
Don't leave out the fact that half of the inflation is due to corporate greed. You couldn't even be bothered to mention that housing is hard to buy because corporations and banks are buying them up with cash offers?
The overheating of the economy was in fact due to monopolization of industrial sectors. The best way to stop this is to stop unfettered mergers. But that’s fiscal policy and legislation, which has stalled in the usa
5:19 When land and dealing with "broken" zoning laws is the most expensive part of the gig, it's no wonder real estate folks would rather deal with existing homes that can be renovated for a flip rather than building a new house entirely. This is why no new homes will ever be built: the polimaticians that own multiple properties hate to see the value of their own real estate portfolio go down just for the sake of doing their jobs by making new homes.
You guys are lucky in America, here max they offered was 3,5% and took a long time for them to star offering that now is at 3% , some offers more but is for 3 months period or signing for a new/small bank bonus , my government helped banks by lowering interest rates on government bonds
So glad I paid off all my debt last year and now I got a free road ahead. I feel like I dodged a CC debt bullet and I agree putting my cash in a high yield savings was a very smart move. I've made so much money off it I don't keep my savings at my local bank anymore. Just my spending and some bills and maybe saving up for a smallish purchase.
Quick question about paying credit card debt. Let's say I have 5000$ debt on my credit card. My salary this week is 1000 dollars. Is it better to put the full 1000 dollars on the credit card ASAP. Or wait till the end of the month and pay what's left in my account. I figure I should wait because of the extra interest on cash advances. Or pay sooner so the interests don't run for the whole month. This is a complicated question for me! I'm not that smart!
Thankyou for addressing the housing shortage but you never show how big of a problem it really is. COVID is nothing compared to the real estate crisis we've been dealing with the past 30 years. And clearly from your own video it's not high interest rates that upended the economy, but that high interest rates were a safeguard against an already upended economy.
Higher interest rates, concerns about a possible recession and instability in the banking system have plagued smaller stocks. I'm still at a crossroads deciding if to invest $400k on my stock portfolio. what’s the best way to take advantage of the market?
I completely agree. I have been consistent with my profit regardless of the market conditions. I got into the market early in 2019 and the constant downtrends and losses discouraged me, so I sold off. I got back in December 2020 and this time with guidance from an investment adviser who was recommended by a colleague
3.2% still means prices are going up on top of already crazy price increases after covid. How are people actually expected to buy in the past rates when things are more than twice as expensive as they used to be?
0:33 "the government raised interest rates" - that's not accurate. The Federal Reserve is not "the government". This is not some sort of conspiracy mongering on my part, but I am perhaps being pedantic. Neither the Executive branch or Congress raised interest rates. Indeed, the last thing a government wants to have to do is pay higher interest on their debt. The Fed has somewhat of a quasi-government nature, but that is far from being the actual government of the US.
I didn't know the federal reserve was a private entity. Did they win a contract to be able to act in the government's name? That seems like a pretty important omission on the part of this video.
The Federal Reserve is managed by the executive branch and authorized / created by the legislative branch, so I'd say (correctly) that it is part of the Federal government...
Last time I checked C wasn’t something that controlled our economy lol. It’s ok I get it. Don’t blame the people in charge. Just assume it was one of those things.
Interest rates aren’t high, it’s historically normal and still lower than the 70s 80s 90s and 2000s. And we are crying about interest rate but refuse to look at the prices???
Exactly..under president Reagan I bought my first house at 18% and 30% capital gains tax..It's just the way it was. With Bush I bought a condo with good down payment and paid 7 3/4% then the real estate market crashed..Both Republicans..just saying
@@davidtrask410 you bought a house at a high interest rate but the houses were in those times were actually affordable. Rn it's like if were paint 400% interest rate
The two are tied together. The interest rates are currently high when you consider the price is high also. But the reason the prices are high is in part because interest rates have been kept low for so long. Another contributing factor is all the regulations limiting supply (to the benefit of current homeowners) along with the flood of invaders 👽
Really well researched and concise video. Currently in the process of looking for a home in the Netherlands. Prices dropped with the interest rate hike but are rising back now. Exciting!
Hey nice video, however I believe it can be misleading. The current target of the FED is 2% which will not be able to achieved if interest rates go down. I believe a more complete picture will be to check on history and look at how long it took to get to a turning point instead of saying in 2024 interest rate may go down.
Inflation did go down when the fed raised rates. How and why this happened we probably don’t agree on. Secondly, this whole episode is actually about inflation so let me giver the correct lens to view this through. In economics simplifying things always helps. If we look at the antebellum U.S. the government began to convert as many of the greenback bills they had issued into real cash (gold) because they were circulating at a massive discount to the gold in bank vaults and people weren’t happy. This massive destruction of currency by the government caused a a decades long deflationary cycle. Lesson: inflation is caused by an expansion of the money supply. Almost nothing else affects inflation in the long run but government spending which is ultimately being monetized by the central bank through money printing. Thirdly, the inflation of the 1970’s was actually caused by us leaving the gold standard in 1971 and Saudi Arabia refusing to take our paper money anymore. Hence oil embargo! In the 1970’s we weren’t in nearly the amount of trouble we are in this time. Then we had a tiny government national debt, households had almost no bad debts and the country could afford and handle the downturn that was caused by 21% interest rates. This downturn could have been prevented if the fed hadn’t lowered interest rates in the decades before. Now we have massive debt, sluggish economy and a central bank who is not prepared to what actually needs to be done to lower inflation because they will bankrupt the US government who can’t afford those interest rates. It wait!!! The US government can’t default! They have the central bank to bail them out with more money printing and quantitative easing. We couldn’t handle 5% interest rates which aren’t enough. You will always know when interest rates are high enough because they are suppose to stop only when households stop charging things on cards, and businesses from making investments.This has not been accomplished! People are still spending and the economy seems to be getting weaker over the past year in almost every measure. What people really need to do is pay off or default on their debts. We accumulated this debt because the federal government and central bank has been incentivizing people to spend and charge their credit cards to the maximum. Interest rates were so low that everyone bought everything on credit and has no incentive to save because rates give no returns when they are near zero(0). To make money on your money you need to take increased risks just to outmaneuver inflations erosive effects. All of that debt needs to be destroyed before we can return to normal economics. The US economy needs to go through the equivalent of a detox and this will be very uncomfortable with a massive depression. But after detox things get better and you have a new beginning. So it’s not all negative. US families will have to come to the realizations that they have been lied to for many decades and that almost no household is solvent when rates finally attempted a return to normal. They will do the honest thing and file for bankruptcy. They will approach their creditors and say honestly that they cannot pay at the current cost of debt. The US government could do the same thing in the world stage and be honest with the world about their mistakes. We tell all our creditors honestly that we can’t pay back the national debt and so everyone might only be able to get .30¢ on the dollar. Deleting the central bank and deleting our debts will allow us to start over without government involvement. And now that everyone defaulted they will have to live with interest rates that are far higher and start their lives on honest economic footing. I would be proud of them. THE GOVERNMENT NEVER DOES THAT THOUGH THEY NEVER DO THE RIGHT THING. Instead what will happen is that all Americans with go through bankruptcy while the federal government does the only other choice they have. The dishonest way. They will print whatever it takes to keep paying the bills. THAT CAUSES INFLATION! So now everyone is still getting .30¢ on the dollar anyways but now we just destroyed our currency instead of taking the pain and going through a natural detox (recession). Either way we get to the same outcome, no debts and a chance to start over without government involvement a clean slate and hopefully a freer market with no government intervention to screw us over in another 100 years. HOPE I HELPED!
And by the way, if you want house prices to drop the government can refuse to secure loans, or destroy the 30 year mortgage while you are doing all the other stuff. 30 year mortgages are a synthetic product invented by government. No bank would naturally issue debt for that term without massive massive interest rate compensation. What I mean is since everyone is gonna have to go through this then the government can help by not making it easier to buy or afford a home. We are the only country with a 30 year mortgage! It brings down monthly payments and therefore allows people to buy ever more expensive houses. Moreover that policy was implemented before the massive inflation of the 1970’s. Remember the government started the 30 year mortgage program to make housing more affordable! Haha! Now if that isn’t an example of government efforts backfiring their intentions then I don’t know what is. Please leave markets alone and allow them to do their job. We had booms and busts all throughout history but they were very small and were almost entirely caused by government incentivizing citizens to do something or incentivizing banks to do something. In 1837 we had a crash and recession after the Bank of The United States had made lending really easy for banks with low capital requirements. Debts accrued and the money supply expanded causing inflation. Real estate had been going through a 30 year bubble already because the government began giving away land out west. President Andrew Jackson essentially went to political war against the BOTUS and made it cease to exist. He is often criticized for this, but in actuality he did all his constituents a favor and believed the free market can take care of things. The recession was short and our production coming out of that crisis was unmatched. Only the 1849 gold rush stands out as a natural economic bubble. Not caused by government alone it was caused by something we call natural inflation. See all that gold being dug up in large quantity all at once actually caused inflation because it acted just as money printing acts today. Resources would have already been allocated to this opportunity for wealth but the government promises made it sound even better. And now since money was more plentiful the natural interest rates for debt began to drop, therefore naturally incentivizing people to spend and borrow. In other words this one event sowed the seeds of the next crisis by causing a boom. Let me make this clear, booms aren’t bad but if they originate from a perversion of the economic system then a worse boom will form and a larger crash and recession which is what happened. Caused by governments intervention, bad things played out. Those bad things take the shape of a crash, usually caused by people coming to get their money out of the bank all at once. When speculative fever breaks out people eventually come to realize that many resources had been misallocated due to the warping of the free market by the BOTUS capital requirements choices. if the market weren’t perverted, then the banks would lend normally for the economic conditions or be alone punished for their risky lending practices by get a run on their bank. Capital in a normal economy will be allocated very precisely by the free market to things that are actually productive. Boom and bust bubbles all end by the free market in a violent reallocation of resources back to where they should have originally been deployed this whole time. Lots of people lose money and assets. This crash in a free market also will recoup any of the inflation that was created by the bubble. There is almost always large quantities of deflation after old fashioned busts because everyone realizes that the banks were just leveraging the gold they had and it turns into a bank run. Wealth is transferred violently from the people who used leverage to acquire assets, and to the conservative players who saved and prepared for the crash. Now these people can go out and buy assets at garage sale prices because everyone is selling to cover their expenses. For example: In the 1837 the bank of the United States was the central authority and had been keeping capital requirements lower than would be naturally prudent for banks. So banks now realizing where the bar was set, now had to compete against that backdrop and take more risks with lending to compete in their returns.this combination started a speculative craze in real estate. This ended badly but compared to what we deal with now, those crises are almost unnoticeable against the backdrop of todays world. Lesson: Trust the natural forces of the market. They are as perfect as humans can get and it worked really good for 5 thousand years. They even naturally account for the imperfect chooses we make as humans. Booms and busts happen, but they stay small and short without government interference.
It would seem like low interest rates would be better than high for small business but when you consider investments into high yield public stocks aka big companies. Does the stock market take away money from small businesses? Also interest in bonds seems like it would make cities more attractive increasing traffic for small businesses.
Bitcoin is on its way to breaking records, getting closer to hitting new high prices, showing that it's gaining more value and could go even higher than we've seen before. This could mean great things for people looking to invest, suggesting now might be a good time to get involved before it jumps even higher. It's an exciting moment that could change the game in general...managed to grow a nest egg of around 2.3Bitcoin to a decent 27Bitcoin....At the heart of this evolution is Linda Wilburn, whose deep understanding of both cryptocurrency and traditional trading has been instrumental. Her holistic approach to investment and commitment to staying abreast of market trends make her an invaluable ally in navigating this new era in cryptocurrency investment.
The same high-yield potential exists in both bullish and bearish situations; what matters is how information and technique are used. Not neglecting professional advice.
I was big on gold and silver but a few months ago I discovered Bitcoin and Ethereum . Listening to lots of stuff from Wilburn has been really helpful in my journey.
With high interest rates and housing being so expensive, home ownership is getting further out of reach. No matter much I got a raise or switched jobs to make more, it keeps getting higher and higher. Maybe I should retire early at 29 with a 9mm plan.
Yo, for real. Like I’m actually being serious. You should maybe see a counsellor. If you can’t afford one, you should check around for any free/ charitable services ❤
"As a result of many complicated factors, prices as a whole started to rise" The federal government more printed money. That's the ultimate reason. More money chasing the same amount of goods. Inflation.
I appreciate your content. With that being said the information you provide is the same as almost all other financial videos. I am coming to the realization that the system is set up to hold the poor down. You ever so casually talk about how hard times, decreased sales, high interest, ect. ext. like these are just expected bumps in the road. When the reality is that these are real people, with real lives, dealing with all those stresses. These are the same people who are trying to be good people but the system keeps telling them they are not enough. The stock market is not for everyone. The general population as a whole does not have the knowledge to operate in that environment. Yet the rich who do operate there want us take our tiny money and throw it at them with a pipe dream promise that it will magically make us stable. All we have to do is not have a life for 20 years.
Want to talk about? What all have you seen in your personal life that was marked up super high to be greedy? For me, I remember shopping at Kroger one week and thinking "Wow, things aren't that expensive here, I think I'll shop here instead of Walmart from now on". And then the next time I went there prices were 60% more. I went back to not shopping there.
Software companies which will never be profitable i.e. Zombie companies, loved near zero interest rates because they didn't need to actually be profitable. Higher rates are better for wealth distribution, and for the long-term economy.
That's because they told you "relative inflation" we aren't at 3% inflation we're at 3% *more* inflation than we did last year. So the prices are going up, just not as fast.
Federal minimums were suspended from Covid to now. That also push more lending along with unlocking everyone’s retirement savings that could pull out for free to buy houses too.
Will you wanted your stimulus check you were warned that it would cause inflation and now here we are the best way to combat this is to raise interest rates on Bank savings account so that way banks have money to lend out and grow the economy everything you can to not give you money
It is so cute that you think that residents own homes. Sorry. Investors and landlords do primarily. They do not have to move when selling because they never lived there. The residents who own their homes are old people who just live in theirs.
In more rural and the rest areas I honestly believe the higher interest rates have been better for first-time home buyers and people without a lot of money. A 6-8% spike in mortgage rates really hurts when you're buying a $450k house, but the effect is neighborhood on a $50k loan. Granted they're also aren't a lot of startups and new small to medium-sized employers in these areas, so they haven't felt as much of an impact on the employment market.
Im planning to finance a used car but since interest rate is still high invluding car prices ill just sit back and wait until im comfortable to buy again
Many PBS digital shows are pretty high quality, and this channel is often fairly good. But this video seems like it's trying too hard to tell young people that things are just ok. Yes, we've had much worse inflation in the past, and yes we've had much worse unemployment in the past. But we have some very troubling global issues currently and these will play out in chaotic ways in the next few years, and young people will have to adjust to living with less.
Although the rising interest rate will undoubtedly curb inflation, it will not stop the US dollar's declining purchasing power. This time, I've learned my lesson. My money is being eaten away by inflation, so the banks cannot be making money off of it. Since investing in the stock market keeps up with inflation, I have set aside $750k to do so, but I have no idea where to begin.
I completely understand your concerns. But In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory services.
I agree. This is why having the right plan is invaluable, my $520k portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a more figures ballpark goal this 2024
@@kemberlyw.patterson*Obviously talking about successful investment, I know I am blessed if not I wouldn't have met someone who is as spectacular as mrs ava Kimberly*
@@alaingarcia4756 Andrew was the last president to pay off all debt, but no way he’ll make it into office in todays world. Most people want these idiot politicians that hand them free stuff.
I've heard that some experts are pointing to factors like rising inflation and this possibility of interest rate getting higher as potential triggers for Treasury market instability. It's making me rethink my investment strategy, especially with my stocks portfolio of $400k
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
I'm pleased I found this conversation. If you're comfortable with it, could you share how I can get in touch with the advisor you rely on for your investments?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Stacy Lynn Staples” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Higher interest rate is now the reason of high inflation. What we are hearing is that high interest is high borrowing cost so that they passed down that cost to the customer. Rent goes up because borrowing cost is high. Rent goes up because less people qualify to buy house, so more competition in the renting market. Also, less buyers qualify on new housing means less new construction. Construction is now on halt. Less supply, higher price. For the richer, high interest equals more free money. Put money on saving account is more free money to spend. For now, high interest rates causing high inflation
This video is light on a lot of content. Homes for example, look at corporate buyers who are keeping things artificially scarce. The fact that exotics and basic banking should be separate. There is so much this halfway done video leaves out.
Enjoy watching us poors, us marginalized, isolated LGBT+, redlined bipoc, disabled etc people wither away while you just keep saying "well! Spending is robust! And wages went up 3 whooooole bucks!".
High interest rate causes house market declining, less people are buying houses. more empty comericial buildings are converted into residential condos wich results in rental declining.After covid, more people are working at home, artificial intelligence technology has eliminated many office jobs, and commercial buildings are vacant and converted into apartments.
With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my $200k savings other than moving in to an RV with my two kids and wife.
You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.
I believe that for the market to normalize, there must be a minimum 40% decline in home prices. It is advisable that you get advice for appropriate portfolio allocation from a knowledgeable advisor if you are unsure about purchasing a home. That's how I've managed to survive for the past five years and accumulate about $1 million in investment returns.
I would be happy to hire someone with a good reputation. How can I locate and thoroughly check them? We started thinking about the concept because we have a family lawyer who has periodically mentioned fiduciaries and we know how valuable they are.
Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like
"While borrowing money has become more expensive, having money has become far more profitable." And so it goes.
So get a job and get some money.
@penultimateh766 Former Australian treasurer Joe Hockey told struggling young people (who can't afford a house) to get a good job that pays good money.
He also said that the poorest people either don't have cars or don't drive very far.
I'm not making this up.
@@dragonite87 Why should young people have a house? I rented until 35.
While that is partially correct, it isn't actually correct. Most people have their net worth tied up in assets, and many people misunderstand the difference between net worth and money when looking at others. Higher interest rates benefit wealth distribution because it makes assets more attainable in the long-term.
@@penultimateh766 bc we want young people to have kids. No one but degenerates are going to breed while renting out a small flat with constant risk of your landlord doubling the price to pay off his own mortgage.
It's almost like this "good" economy only benefits the people who were already wealthy and screwed over anyone who actually at risk. I think it's LONG past time we stopped only looking at raw metrics and instead looked at how everyday people are affected
2007 I bought my home at the peak of the market at a high interest rate, then the crash, then a HARP refinance. For over a decade I somehow made it work. Then, interest rates get below 3% and I refinance. It's friggin crazy I'm finally feeling like my home was worth over a decade of stress.
At least you have a house. Young people can’t afford housing without nepo benefits
The economic landscape wasn’t as dramatic of a change as when mustache man Phil turned into Mr.Brightside
🎸
I miss his mustache lol.
Love your videos. PBS for Adults but the way I felt when I was a kid.
The home buying sideline is huge. It will be interesting to see what happens to already high home prices when the rates drop a couple percent.
The fact that you use the word “interesting” reveals that you already have a home.
Those of us in our 20s might use “terrifying”.
@@AK-jt9gxlol living in a war zone is terrifying get some perspective 😂😂😂
@@KN-cool I agree that I used an overly strong word. It was hyperbole. But “interesting” certainly doesn’t cover it. There *is* an element of serious fear regarding having to live “on the edge” financially for multiple decades of our lives due to this housing crisis. You want to critique my word choice, fine. But don’t get to tell us it’s not unfair and scary that because of older generations’ greed, we’re going to live in the hardest generation ever to find housing while we’re taxed to pay for their end-of-life care.
@@AK-jt9gx i didnt say it wasn't unfair
Because of high loan rates, the housing market is contracting and fewer individuals are purchasing homes. More vacant commercial buildings are being turned into residential condominiums, which lowers rental prices.Following COVID, more individuals are working from home, many office positions have been replaced by artificial intelligence, and business buildings have been demolished and turned into flats.
What are the greatest options/strategies for avoiding a crunch and maximizing my $200k savings other than moving into an RV with my wife and two children, given that rates are rising at an unprecedented rate in 2023 and that inflation is out of control? Our personal mortgage is now at 7.5%.
You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.
I believe that for the market to normalize, there must be a minimum 40% decline in home prices. It is advisable that you get advice for appropriate portfolio allocation from a knowledgeable advisor if you are unsure about purchasing a home. That's how I've managed to survive for the past five years and accumulate about $1 million in investment returns.
@@Jeffcraparo Mind if I ask you to recommend this particular coach you using their service?
My CFA, ANNETTE MARIE HOLT a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I mean, just look up historic mortgage rates, over the past 50 years or so, and you'll quickly find that the rates of the last decade or so were abnormally low. It kind of reminds me of how I would see people post photos showing gas prices on the same day in 2020 and 2021 and imply that gas prices were low under Trump and skyrocketed under Biden, but they failed to consider that the low 2020 price was overwhelmingly due to low demand from the pandemic and a massive surge in supply from Saudi Arabia during its price war with Russia.
Mortgage rates in the 1990s (supposedly the decade of greatest economic expansion in US history) were upwards of 8%, and towards the start of the decade were trending closer to 10%. My student loans were 8%. People forget that stuff relatively quickly.
@@scarpfish It's natural to "forget" when you were a kid during those times. That's why financial education is key in high school. I'm very surprised it isn't a core subject that Juniors or Seniors have to take. I mean even at least one semester of it would do loads of good to students who might otherwise dig themselves in a hole that they spend the rest of their middle age trying to crawl out of.
@scarpfish Yeah but prices were cheap in the 1990's. Gas was like 1.25. Minimum wage was 3.35. My first place 1 bedroom was 225. Car insurance was 25 a month. McDonald's was like 4.00. Nobody in 90's knew what inflation was. Now you can't make enough because information from technology has enabled people to manipulate things so quickly that the cycles are shorter now. Cycles being people's ability to "keep up with normal wages and their purchasing power." Back in 90's you could work 2 jobs and be considered 3 times richer than a normal person. Now a person has to work 4 forty hour jobs to just stay in a rental place with a old used car with no hope in site. I don't see things getting better due to how the age of technology has really screwed up things due to lightening fast transfer of information. I remember reading how computers do millions of stock trades per second to manipulate the stock market. Well that's just 1 example of "forgotten manipulation." But you get my point. Crime against humanity has become normal and people don't even realize it. Government is completely ignoring it.
@@nowthatsfunny1 A person can't possibly work four 40-hour jobs; there are only 168 hours in a week.
The workers know
I'm still in the glass half empty side because a lot of the world is actually going through quite the crisis right now. It just so happens that USA's spending addiction is prolonging the issue of their finances and actually not coming up with plans on addressing the issue outright or at least start to pay off its own accumulated debt is making the issue bigger and when it strikes it would have massive implications. Just imagine if a citizen asked to prolong their current debt levels forever even when they're dead as the banks would laugh at you for that proposition but when any government does it the institutions lending the money or form the contract bat an eye and sign blindly.
I'm also extremely annoyed at the disconnect at the stock market with the actual economy right now and argue they should be a reflection of each other and not be separate entities. This proves that the stock market isn't efficient at all and leverages trends and biases to keep inflating the bidding price of the stock price of certain assets and we're seeing how artificially this is done with leveraged option products. I will always mention that the government can fix this by creating standards on how money is created and what each unit should equate to with some unit of effort. But nope we continue to live through the subjective judgement of how rich people deserve their wealth and because of relaxed regulations without standards as long as you have a lot of money you can go "Rules for me and not for thee" basically.
I 100% agree but remember the saying "the market will remain irrational longer than you can remain solvent"
Spot on about America's spending addiction, we should have checked into the Betty Ford clinic for this habit a long time ago. Our modern "instant gratification" lifestyle, relentless ads/marketing urging us to spend, spend, spend, and services like Amazon, Temu etc. aren't exactly helping, either
I like the Hannah Barbera sound effects.
Don't leave out the fact that half of the inflation is due to corporate greed.
You couldn't even be bothered to mention that housing is hard to buy because corporations and banks are buying them up with cash offers?
The overheating of the economy was in fact due to monopolization of industrial sectors.
The best way to stop this is to stop unfettered mergers. But that’s fiscal policy and legislation, which has stalled in the usa
Credit Cards: maxed out
Money in the bank: cashed out
Mental health: crashed out
Great video! I appreciate what you guys do 😊
Thank you PBS and 2cents.
Adults need simple financial and economical explanations. I love these short form videos with big information.
Nice video!! Keep up the good work ✌🏻
5:19 When land and dealing with "broken" zoning laws is the most expensive part of the gig, it's no wonder real estate folks would rather deal with existing homes that can be renovated for a flip rather than building a new house entirely.
This is why no new homes will ever be built: the polimaticians that own multiple properties hate to see the value of their own real estate portfolio go down just for the sake of doing their jobs by making new homes.
It's true. Price at Bob's Shop has gone up quit a bit.
❤ taking advantage of the high yield savings account 🎉
Indeed! I'm throwing money into a Money Market fund that was at 5.5% the last I checked. Whereas my bank's savings account is *_still_* at 0.07% 🙄
Short term treasury bonds are 🔥🔥🔥 too. No state and local income taxes on profit as well.
You guys are lucky in America, here max they offered was 3,5% and took a long time for them to star offering that now is at 3% , some offers more but is for 3 months period or signing for a new/small bank bonus , my government helped banks by lowering interest rates on government bonds
So glad I paid off all my debt last year and now I got a free road ahead. I feel like I dodged a CC debt bullet and I agree putting my cash in a high yield savings was a very smart move. I've made so much money off it I don't keep my savings at my local bank anymore. Just my spending and some bills and maybe saving up for a smallish purchase.
So you're one of those evil rich people who are hoarding wealth and speculating off the rightful property of the masses.
Great Video! Keep up the great work!
Quick question about paying credit card debt.
Let's say I have 5000$ debt on my credit card.
My salary this week is 1000 dollars.
Is it better to put the full 1000 dollars on the credit card ASAP. Or wait till the end of the month and pay what's left in my account.
I figure I should wait because of the extra interest on cash advances.
Or pay sooner so the interests don't run for the whole month.
This is a complicated question for me! I'm not that smart!
Thankyou for addressing the housing shortage but you never show how big of a problem it really is. COVID is nothing compared to the real estate crisis we've been dealing with the past 30 years. And clearly from your own video it's not high interest rates that upended the economy, but that high interest rates were a safeguard against an already upended economy.
Great stuff! Thank you!
Higher interest rates, concerns about a possible recession and instability in the banking system have plagued smaller stocks. I'm still at a crossroads deciding if to invest $400k on my stock portfolio. what’s the best way to take advantage of the market?
If you're not who understands strategies to invest in the market, seek a Financial advisor to guide you.
I completely agree. I have been consistent with my profit regardless of the market conditions. I got into the market early in 2019 and the constant downtrends and losses discouraged me, so I sold off. I got back in December 2020 and this time with guidance from an investment adviser who was recommended by a colleague
That's impressive! I could really use the expertise of this advsors.
The transformation for dude in accounting to John Frusciante is my favorite part of these videos
3.2% still means prices are going up on top of already crazy price increases after covid. How are people actually expected to buy in the past rates when things are more than twice as expensive as they used to be?
thank you for the video! i was waiting for this one
0:33 "the government raised interest rates" - that's not accurate. The Federal Reserve is not "the government". This is not some sort of conspiracy mongering on my part, but I am perhaps being pedantic. Neither the Executive branch or Congress raised interest rates. Indeed, the last thing a government wants to have to do is pay higher interest on their debt. The Fed has somewhat of a quasi-government nature, but that is far from being the actual government of the US.
I didn't know the federal reserve was a private entity. Did they win a contract to be able to act in the government's name? That seems like a pretty important omission on the part of this video.
The Federal Reserve is managed by the executive branch and authorized / created by the legislative branch, so I'd say (correctly) that it is part of the Federal government...
Being in WA, 70 in the summer is still warm! We try and not go below 65 on the AC, but it's hard
Last time I checked C wasn’t something that controlled our economy lol. It’s ok I get it. Don’t blame the people in charge. Just assume it was one of those things.
Interest rates aren’t high, it’s historically normal and still lower than the 70s 80s 90s and 2000s. And we are crying about interest rate but refuse to look at the prices???
Exactly..under president Reagan I bought my first house at 18% and 30% capital gains tax..It's just the way it was. With Bush I bought a condo with good down payment and paid 7 3/4% then the real estate market crashed..Both Republicans..just saying
@@davidtrask410 you bought a house at a high interest rate but the houses were in those times were actually affordable. Rn it's like if were paint 400% interest rate
The two are tied together. The interest rates are currently high when you consider the price is high also. But the reason the prices are high is in part because interest rates have been kept low for so long. Another contributing factor is all the regulations limiting supply (to the benefit of current homeowners) along with the flood of invaders 👽
@@BP-ke5qs oh, im aware of all that too. its bad.
The folks who are at lowest of end income are the ones hurting the most.
Really well researched and concise video. Currently in the process of looking for a home in the Netherlands. Prices dropped with the interest rate hike but are rising back now. Exciting!
awesome job, super informative.
4:00 small in terms of number or small in terms of total market share lol, obviously there's only a couple that dominate the whole thing
1:31. Phil's "look at this graph moment"
Hey nice video, however I believe it can be misleading. The current target of the FED is 2% which will not be able to achieved if interest rates go down. I believe a more complete picture will be to check on history and look at how long it took to get to a turning point instead of saying in 2024 interest rate may go down.
Rates are not going to be cut. They can try but it won't be good.
Inflation did go down when the fed raised rates. How and why this happened we probably don’t agree on.
Secondly, this whole episode is actually about inflation so let me giver the correct lens to view this through.
In economics simplifying things always helps. If we look at the antebellum U.S. the government began to convert as many of the greenback bills they had issued into real cash (gold) because they were circulating at a massive discount to the gold in bank vaults and people weren’t happy.
This massive destruction of currency by the government caused a a decades long deflationary cycle. Lesson: inflation is caused by an expansion of the money supply. Almost nothing else affects inflation in the long run but government spending which is ultimately being monetized by the central bank through money printing.
Thirdly, the inflation of the 1970’s was actually caused by us leaving the gold standard in 1971 and Saudi Arabia refusing to take our paper money anymore. Hence oil embargo!
In the 1970’s we weren’t in nearly the amount of trouble we are in this time. Then we had a tiny government national debt, households had almost no bad debts and the country could afford and handle the downturn that was caused by 21% interest rates. This downturn could have been prevented if the fed hadn’t lowered interest rates in the decades before. Now we have massive debt, sluggish economy and a central bank who is not prepared to what actually needs to be done to lower inflation because they will bankrupt the US government who can’t afford those interest rates. It wait!!! The US government can’t default! They have the central bank to bail them out with more money printing and quantitative easing.
We couldn’t handle 5% interest rates which aren’t enough.
You will always know when interest rates are high enough because they are suppose to stop only when households stop charging things on cards, and businesses from making investments.This has not been accomplished! People are still spending and the economy seems to be getting weaker over the past year in almost every measure. What people really need to do is pay off or default on their debts. We accumulated this debt because the federal government and central bank has been incentivizing people to spend and charge their credit cards to the maximum. Interest rates were so low that everyone bought everything on credit and has no incentive to save because rates give no returns when they are near zero(0). To make money on your money you need to take increased risks just to outmaneuver inflations erosive effects. All of that debt needs to be destroyed before we can return to normal economics. The US economy needs to go through the equivalent of a detox and this will be very uncomfortable with a massive depression. But after detox things get better and you have a new beginning. So it’s not all negative.
US families will have to come to the realizations that they have been lied to for many decades and that almost no household is solvent when rates finally attempted a return to normal. They will do the honest thing and file for bankruptcy. They will approach their creditors and say honestly that they cannot pay at the current cost of debt.
The US government could do the same thing in the world stage and be honest with the world about their mistakes. We tell all our creditors honestly that we can’t pay back the national debt and so everyone might only be able to get .30¢ on the dollar.
Deleting the central bank and deleting our debts will allow us to start over without government involvement. And now that everyone defaulted they will have to live with interest rates that are far higher and start their lives on honest economic footing. I would be proud of them. THE GOVERNMENT NEVER DOES THAT THOUGH THEY NEVER DO THE RIGHT THING.
Instead what will happen is that all Americans with go through bankruptcy while the federal government does the only other choice they have. The dishonest way. They will print whatever it takes to keep paying the bills. THAT CAUSES INFLATION! So now everyone is still getting .30¢ on the dollar anyways but now we just destroyed our currency instead of taking the pain and going through a natural detox (recession).
Either way we get to the same outcome, no debts and a chance to start over without government involvement a clean slate and hopefully a freer market with no government intervention to screw us over in another 100 years.
HOPE I HELPED!
And by the way, if you want house prices to drop the government can refuse to secure loans, or destroy the 30 year mortgage while you are doing all the other stuff. 30 year mortgages are a synthetic product invented by government. No bank would naturally issue debt for that term without massive massive interest rate compensation.
What I mean is since everyone is gonna have to go through this then the government can help by not making it easier to buy or afford a home. We are the only country with a 30 year mortgage! It brings down monthly payments and therefore allows people to buy ever more expensive houses. Moreover that policy was implemented before the massive inflation of the 1970’s. Remember the government started the 30 year mortgage program to make housing more affordable! Haha!
Now if that isn’t an example of government efforts backfiring their intentions then I don’t know what is.
Please leave markets alone and allow them to do their job.
We had booms and busts all throughout history but they were very small and were almost entirely caused by government incentivizing citizens to do something or incentivizing banks to do something. In 1837 we had a crash and recession after the Bank of The United States had made lending really easy for banks with low capital requirements. Debts accrued and the money supply expanded causing inflation. Real estate had been going through a 30 year bubble already because the government began giving away land out west. President Andrew Jackson essentially went to political war against the BOTUS and made it cease to exist. He is often criticized for this, but in actuality he did all his constituents a favor and believed the free market can take care of things. The recession was short and our production coming out of that crisis was unmatched. Only the 1849 gold rush stands out as a natural economic bubble. Not caused by government alone it was caused by something we call natural inflation. See all that gold being dug up in large quantity all at once actually caused inflation because it acted just as money printing acts today. Resources would have already been allocated to this opportunity for wealth but the government promises made it sound even better. And now since money was more plentiful the natural interest rates for debt began to drop, therefore naturally incentivizing people to spend and borrow. In other words this one event sowed the seeds of the next crisis by causing a boom. Let me make this clear, booms aren’t bad but if they originate from a perversion of the economic system then a worse boom will form and a larger crash and recession which is what happened. Caused by governments intervention, bad things played out. Those bad things take the shape of a crash, usually caused by people coming to get their money out of the bank all at once. When speculative fever breaks out people eventually come to realize that many resources had been misallocated due to the warping of the free market by the BOTUS capital requirements choices. if the market weren’t perverted, then the banks would lend normally for the economic conditions or be alone punished for their risky lending practices by get a run on their bank. Capital in a normal economy will be allocated very precisely by the free market to things that are actually productive. Boom and bust bubbles all end by the free market in a violent reallocation of resources back to where they should have originally been deployed this whole time. Lots of people lose money and assets. This crash in a free market also will recoup any of the inflation that was created by the bubble. There is almost always large quantities of deflation after old fashioned busts because everyone realizes that the banks were just leveraging the gold they had and it turns into a bank run. Wealth is transferred violently from the people who used leverage to acquire assets, and to the conservative players who saved and prepared for the crash. Now these people can go out and buy assets at garage sale prices because everyone is selling to cover their expenses.
For example: In the 1837 the bank of the United States was the central authority and had been keeping capital requirements lower than would be naturally prudent for banks. So banks now realizing where the bar was set, now had to compete against that backdrop and take more risks with lending to compete in their returns.this combination started a speculative craze in real estate. This ended badly but compared to what we deal with now, those crises are almost unnoticeable against the backdrop of todays world.
Lesson: Trust the natural forces of the market. They are as perfect as humans can get and it worked really good for 5 thousand years. They even naturally account for the imperfect chooses we make as humans. Booms and busts happen, but they stay small and short without government interference.
It would seem like low interest rates would be better than high for small business but when you consider investments into high yield public stocks aka big companies. Does the stock market take away money from small businesses? Also interest in bonds seems like it would make cities more attractive increasing traffic for small businesses.
Bitcoin is on its way to breaking records, getting closer to hitting new high prices, showing that it's gaining more value and could go even higher than we've seen before. This could mean great things for people looking to invest, suggesting now might be a good time to get involved before it jumps even higher. It's an exciting moment that could change the game in general...managed to grow a nest egg of around 2.3Bitcoin to a decent 27Bitcoin....At the heart of this evolution is Linda Wilburn, whose deep understanding of both cryptocurrency and traditional trading has been instrumental. Her holistic approach to investment and commitment to staying abreast of market trends make her an invaluable ally in navigating this new era in cryptocurrency investment.
She's often interacts on Telegrams, using the user-name.
@Lindawilburn
The same high-yield potential exists in both bullish and bearish situations; what matters is how information and technique are used. Not neglecting professional advice.
I was big on gold and silver but a few months ago I discovered Bitcoin and Ethereum . Listening to lots of stuff from Wilburn has been really helpful in my journey.
I dont buy much. Foods are raising but not salary.
Apparently all the cost of living corps didn't get the message inflation dropped. Super convenient for them huh
Money shouldn’t be free. We should never go back to ZIRP
Let's goooooooo!
Thanks for this. Ran out and swept my cash into CD’s. Rates are good for short terms, 3-7 months, and are already falling.
Typically, the best time to buy anything is during a recession... if you can truly afford to. 🤷♂
With high interest rates and housing being so expensive, home ownership is getting further out of reach. No matter much I got a raise or switched jobs to make more, it keeps getting higher and higher. Maybe I should retire early at 29 with a 9mm plan.
Only quitters quit.
Yo, for real. Like I’m actually being serious. You should maybe see a counsellor. If you can’t afford one, you should check around for any free/ charitable services ❤
You can rent rather than "calling it quits".
Might be a slightly less dramatic solution...
Winners are losers who win. Start winning.
@@dipdip7250 that's bs talk. Might as well be saying that people should just all be above average.
"As a result of many complicated factors, prices as a whole started to rise"
The federal government more printed money. That's the ultimate reason. More money chasing the same amount of goods. Inflation.
Yes, let's ignore the two wars that broke out
I appreciate your content. With that being said the information you provide is the same as almost all other financial videos. I am coming to the realization that the system is set up to hold the poor down. You ever so casually talk about how hard times, decreased sales, high interest, ect. ext. like these are just expected bumps in the road. When the reality is that these are real people, with real lives, dealing with all those stresses. These are the same people who are trying to be good people but the system keeps telling them they are not enough. The stock market is not for everyone. The general population as a whole does not have the knowledge to operate in that environment. Yet the rich who do operate there want us take our tiny money and throw it at them with a pipe dream promise that it will magically make us stable. All we have to do is not have a life for 20 years.
I was today years old to learn a word "upended"
It's interesting that we don't hear about greedflation.
Want to talk about? What all have you seen in your personal life that was marked up super high to be greedy? For me, I remember shopping at Kroger one week and thinking "Wow, things aren't that expensive here, I think I'll shop here instead of Walmart from now on". And then the next time I went there prices were 60% more. I went back to not shopping there.
TLDR: everybody is making money except you.
Can't beat 'em? _Join 'em._ 😈📈
Nothing to do but raise interest rates. God forbid we make anti-price-gouging laws.
Software companies which will never be profitable i.e. Zombie companies, loved near zero interest rates because they didn't need to actually be profitable. Higher rates are better for wealth distribution, and for the long-term economy.
Young people need a chance at life
……If “inflation” dropped back from 9 to 3 it sure does not feel like it did
That's because they told you "relative inflation" we aren't at 3% inflation we're at 3% *more* inflation than we did last year. So the prices are going up, just not as fast.
@@TiberiusX disagree. Prices 100% went up faster.
If you got paid the 5 silver quarters of minimum wage in 1964 it would be 26 dollars an hour
Federal minimums were suspended from Covid to now. That also push more lending along with unlocking everyone’s retirement savings that could pull out for free to buy houses too.
5:52 The phase is "champing at the bit" not chomping.
*phrase
No, you’re incorrect
But when are we going back to normal? lol
Saddest video 😢
Will you wanted your stimulus check you were warned that it would cause inflation and now here we are the best way to combat this is to raise interest rates on Bank savings account so that way banks have money to lend out and grow the economy everything you can to not give you money
It is so cute that you think that residents own homes. Sorry. Investors and landlords do primarily. They do not have to move when selling because they never lived there.
The residents who own their homes are old people who just live in theirs.
The next housing crash will probably be worse than 2008.
In more rural and the rest areas I honestly believe the higher interest rates have been better for first-time home buyers and people without a lot of money. A 6-8% spike in mortgage rates really hurts when you're buying a $450k house, but the effect is neighborhood on a $50k loan. Granted they're also aren't a lot of startups and new small to medium-sized employers in these areas, so they haven't felt as much of an impact on the employment market.
The guy looks ao much younger qothout the 70s mustache and long hair. Even younger than the woman
❤
Damn, does anyone make "Too Long Don't Watch" version of these? I feel like all of two cents videos have gotten so boring over the last bit 😭
Cries in Millennial while watching this video ..
The Fed needs an audit.
The Fed needs to end
Nah billionaires and fortune 500 companies need to be better audited than the morons at the Big 4. I was one of them, SOX audits are BS.
@@MBarberfan4lifeBefore the Fed, banks failed multiple times a year and ordinary people lost their cash savings.
People thought the world was ending in 2012 and we are still here. k So chill.
Im planning to finance a used car but since interest rate is still high invluding car prices ill just sit back and wait until im comfortable to buy again
Many PBS digital shows are pretty high quality, and this channel is often fairly good. But this video seems like it's trying too hard to tell young people that things are just ok. Yes, we've had much worse inflation in the past, and yes we've had much worse unemployment in the past. But we have some very troubling global issues currently and these will play out in chaotic ways in the next few years, and young people will have to adjust to living with less.
This is called gaslighting
It's because their friends are in the white house currently 🤫
Although the rising interest rate will undoubtedly curb inflation, it will not stop the US dollar's declining purchasing power. This time, I've learned my lesson. My money is being eaten away by inflation, so the banks cannot be making money off of it. Since investing in the stock market keeps up with inflation, I have set aside $750k to do so, but I have no idea where to begin.
I completely understand your concerns. But In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory services.
I agree. This is why having the right plan is invaluable, my $520k portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a more figures ballpark goal this 2024
I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you
@@kemberlyw.patterson*Obviously talking about successful investment, I know I am blessed if not I wouldn't have met someone who is as spectacular as mrs ava Kimberly*
*Obviously talking about successful investment, I know I am blessed if not I wouldn't have met someone who is as spectacular as mrs ava Kimberly*
5:53 *champing at the bit
WE NEED SOCIAL HOUSING NOW!!!
Eww, no
We need another Andrew Jackson in office.
For what exactly?
@scarpfish dismantled the central bank ie the Federal Reserve and restored constitutional money as he did during his presidency .
@@scarpfish To dismantle the central bank ie the Federal Reserve and establish constitutional money again like he did.
@@alaingarcia4756 HARD PASS.
@@alaingarcia4756 Andrew was the last president to pay off all debt, but no way he’ll make it into office in todays world. Most people want these idiot politicians that hand them free stuff.
Raspacious corporations = greedflation
CUT YOUR HAIR DUDE!
Fa
cute as usual : )
I've heard that some experts are pointing to factors like rising inflation and this possibility of interest rate getting higher as potential triggers for Treasury market instability. It's making me rethink my investment strategy, especially with my stocks portfolio of $400k
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
I'm pleased I found this conversation. If you're comfortable with it, could you share how I can get in touch with the advisor you rely on for your investments?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Stacy Lynn Staples” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Wat happened to these 2 people ..
First things first, bring back the ‘tache!
JUSTICE FOR PHILLIPS MUSTACHE
Higher interest rate is now the reason of high inflation. What we are hearing is that high interest is high borrowing cost so that they passed down that cost to the customer. Rent goes up because borrowing cost is high. Rent goes up because less people qualify to buy house, so more competition in the renting market. Also, less buyers qualify on new housing means less new construction. Construction is now on halt. Less supply, higher price.
For the richer, high interest equals more free money. Put money on saving account is more free money to spend.
For now, high interest rates causing high inflation
The rich prefer lower interest rates to juice their asset prices. That's where they make their money not in their savings accounts lmao
@@DMAN590 during high interest stage, you can move your stock assets into liquidity. Then move them back to stock when interest go down. Easy money.
This video is light on a lot of content. Homes for example, look at corporate buyers who are keeping things artificially scarce. The fact that exotics and basic banking should be separate. There is so much this halfway done video leaves out.
First 🎉
Until we go back to the gold standard we'll keep having problems
Crypto
champing at the bit
Rates kept artificially low. Stop whining.
Enjoy watching us poors, us marginalized, isolated LGBT+, redlined bipoc, disabled etc people wither away while you just keep saying "well! Spending is robust! And wages went up 3 whooooole bucks!".
Oh stop, stop trying to play the victim.
Man, I'm sure happy I'm just broke right now and not in debt.