Posted on 05/21/2022 6:55:03 PM PDT by elpadre
US stock prices and President Biden’s approval rating continued to tank, as inflation swamped household income. Only 39% of Americans approve of Biden’s performance, and just 33% of Democrats think the country is heading in the right direction. That’s no surprise, given the nearly 40% collapse of retailers’ stock prices this year. The S&P 500 is teetering on the edge of a bear market – that is, a peak-to-trough decline of 20% or more.
The Biden stimulus – compounding the errors of the Trump Administration – amounted to a Ponzi scheme that threw $6 trillion of spending power at US consumers while at the same time constricting supply. That’s like handing out 10,000 vouchers for 5,000 available hot dogs at a baseball game.
The result is an inflation rate of 12%, not the 8% reported by the Bureau of Labor Statistics. Hourly earnings are rising by just 5% a year, so real income is crashing. Americans have been running up credit-card debt to make up the difference, but the meltdown of retail stocks signals that the post-COVID consumer boom is over.
US consumer prices rose by 8.3% in the year through April, according to official data, but that includes an inflation estimate for shelter inflation of just 5% a year. Rents rose 16% during the twelve months through April 30 according to both Zillow and Apartmentlist.com, the two most comprehensive private indices. Shelter is a third of the consumer price index, so the private-sector shelter numbers based on actual transactions add another 4 percentage points to consumer price inflation.
(Excerpt) Read more at asiatimes.com ...
an excerpt:
“..The collapse of corporate CapEx will only make inflation worse. American nonfinancial businesses invested barely as much in 2021 as they did in 2014. The Trump corporate tax reform of 2017 is partly to blame. It reduced the headline rate on corporate taxes but eliminated depreciation allowances for capital investments. As a result, the constituent companies of the S&P 500 spent more money buying back their own stock than on capital investment in 2018, the first time that had happened since the 2008 recession...”
Sounds like typical pseudo-academic drivel from the pinhead ‘experts’ who advise the ultimate pinheads who wind up in or connected to government.
Wasn’t it 39% 6 months ago??
Stopped right there.
Biden, Pelosi, Schumer and the Democrats handing out borrowed money to buy votes is what fueled inflation. Add the wanton destruction of our energy infrastructure by the Democrats triggered the perfect storm.
Sell short if you want. Some are holding good bags.
Agree! Both Trump and Biden through the national emergency gave too much authority to the CDC and Fauci, and they completely mishandled it.
Finding the vaccines had to happen, but finding the cure was equally as important and, by all appearances, that was delayed until vaccines came out. Common sense was not used.
Inflation is only 4% greater than the doctored government claims? I call BS. It is greater than 12% and it is going to get much worse without an immediate 180 by the Bidenites. And we all know that’s not going to happen.
A lot of them are idiots, but I believe that there are some who have the purposeful goal of destroying the country. They desire poverty and chaos.
“..there are some who have the purposeful goal of destroying the country...”
If they want a complete change to an absolute communist state, as an example, then it would be impossible to restructure the present Republic. It must be completely destroyed, with the foundations removed, and then rebuilt to their fantasy dream.
Idea is to sell and buy when it hits the floor
And you know where the floor is magically? I think it will be choppy into the fall and then collapse in October just like 1929 and 1989. We shall see but look at Amazon down from $3,600 to $2,100. All the FAANG stocks were way overvalued. Tesla coming down to earth, etc. etc.
There will be death and cannibalism and tears and sand.
I don’t like sand. It’s coarse and rough and irritating… and it gets everywhere.
But cannibalism? Cannibalism has its positive sides.
Regards,
Euh, with a gammy leg?
You print up money like crazy, you get inflation. You stop printing up so much cash, you get a recession. Predictable as clockwork.
no But I’ve had pretty decent luck taking a good guess.
He made a good point wrt the tax reform eliminating the tax benefit of CAPEX depreciation, but he’s wrong in saying lifting the tariffs on China will help reduce inflation. It will but what we need to do is steadily increase the tariffs on China. We need to slowly price their goods out of the market so as to “encourage” companies to reshore a lot of those manufacturing jobs.
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