Econ Thread

[Shawnathan Horcoff]

Can't wait for all the lawsuits during humanity's last stand in The Water War.

[Bogdans Hodass]

FutureShop shut down most of its locations today without warning. Employees came to work and there was a sign on the door that said the store is closed forever. Some real bullshit.

[RTWAP]

Yup. Time to remove Best Buy from the list of stores I'm willing to shop at.

[Bogdans Hodass]

I wasn't willing to shop there anyway, not after working there lol.

[Bogdans Hodass]

They still had commission there.

[Thomas Malthus]

http://www.bloomberg.com/graphics/2015- ... usterians/

[MP]

I'll bump this thread because why not.

So rising interest rates, high inflation, corporate greed, where does it all end?

https://www.cbc.ca/news/business/inflation-family-column-don-pittis-1.6750879

Seems like people are mostly sucking it up at this point and not changing their lifestyles, but at some point things are going to break, aren't they?

[Boring Choice #2]

Yeah, it's really fucked up that the BoC thinks the best way to keep the inflation rate in an arbitrary window is to bankrupt poor people (hint: people with money can better withstand their actions), especially given that a large amount of the inflation is coming from suppliers outside of the country who are not impacted by the bank's rate.

[chicpea]

...at some point things are going to break, aren't they?

I wondered this exactly this morning as I read news that Vancouver's new budget is calling for 9.7% Property Tax increase. That is fairly substantial on top of everything else.

[Craig]

Yeah, it's really fucked up that the BoC thinks the best way to keep the inflation rate in an arbitrary window is to bankrupt poor people (hint: people with money can better withstand their actions), especially given that a large amount of the inflation is coming from suppliers outside of the country who are not impacted by the bank's rate.

The bank only have so many tools at their disposal. The article MP linked is obviously a case of them trying to influence things without raising rates, but at the end of the day there's almost nothing else they can do to control inflation.

Inflation isn't exactly good for poor people either, is it?

[Craig]

I'll bump this thread because why not.

So rising interest rates, high inflation, corporate greed, where does it all end?

https://www.cbc.ca/news/business/inflation-family-column-don-pittis-1.6750879

Seems like people are mostly sucking it up at this point and not changing their lifestyles, but at some point things are going to break, aren't they?

A less alarming way to look at this is declining inflation and a probable pause on rate hikes to control it.

[Boring Choice #2]

Yeah, it's really fucked up that the BoC thinks the best way to keep the inflation rate in an arbitrary window is to bankrupt poor people (hint: people with money can better withstand their actions), especially given that a large amount of the inflation is coming from suppliers outside of the country who are not impacted by the bank's rate.

The bank only have so many tools at their disposal. The article MP linked is obviously a case of them trying to influence things without raising rates, but at the end of the day there's almost nothing else they can do to control inflation.

Inflation isn't exactly good for poor people either, is it?

No, inflation isn't good for poor people. I agree that this article is an attempt by the BoC to influence things outside of raising interest rates, and that is a good thing.

My bigger issue is that the BoC knew that raising interest rates to the levels they are now would have little impact on inflation and therefore shouldn't have raised the rates, as what they were doing was both ineffectual as well as harmful to their future ability to raise rates which might have an impact.

Industry is essentially ignoring the BoC and moving forwarding with maximizing profits because they can, and the BoC is looking like crap in the process of industry ignoring them.

[Craig]

I don't agree. Rates being higher will/should curtail inflation regardless of what industry want. Inflation reacted to higher rates as expected, so I think you have a huge burden of proof when you say raising rates had little impact.

[Beaker]

Its very obvious that the rising rates have cooled big ticket purchases. The housing market has slowed considerably. New car purchases have also slowed. Rent prices have also plateaued

This has to have an effect on the economy. When you slow inflation on that sector, its going to have knock on effects.

[PredsFan77]

Canada and Australia housing markets gonna be fun around Q3. Better hope the mining/oil sectors can keep it afloat

[Dog]

You ever end up buying that condo in Whistler for $1, Predo?

[Dog]

Re economy: rates go up, valuations come down, recession happens, contraction eventually yields opportunity, things recover, people get ahead of themselves, rince and repeat. Nothing new under the sun.

On another note, rates aren’t particularly high (by historical standards), inflation is weakening, real economy is holding so far. Likely be a recession and some pain, but may not be that bad (by historical standards).

Wanna get rid of economic cycles, get rid of human psychology.

[jester]

Wasn't expecting the quick transition to genocide, but there it is.

[chicpea]

Re economy: rates go up, valuations come down, recession happens, contraction eventually yields opportunity, things recover, people get ahead of themselves, rince and repeat. Nothing new under the sun.

Sounds to me like a classic re-build.

[Dog]

Wasn't expecting the quick transition to genocide, but there it is.

Do you know of any problems for which the solution isn’t genocide, Jester?

[PredsFan77]

You ever end up buying that condo in Whistler for $1, Predo?

Met with my first real estate agent last month. We’re targeting summer of next year or when the war starts

[PredsFan77]

Re economy: rates go up, valuations come down, recession happens, contraction eventually yields opportunity, things recover, people get ahead of themselves, rince and repeat. Nothing new under the sun.

On another note, rates aren’t particularly high (by historical standards), inflation is weakening, real economy is holding so far. Likely be a recession and some pain, but may not be that bad (by historical standards).

Wanna get rid of economic cycles, get rid of human psychology.

Pre-Covid when was the last big Canadian recession? Y’all were pretty unscathed in 07-08 thanks to your energy/mining market. So there was no deleveraging of your consumers like what occurred with US consumers. Think y’all gonna get a big one this time around

[clawfirst]

Not like you guys. We have more strict regulations. But ya. 2% on a mortgage will fuck a lot of people living foot to mouth up, badly.

And the answer is the late 80's

I'm all for it. Burn it down.

[PredsFan77]

That’s the thing with regulation. It’s starts really strict and gets looser as time goes by. Have to have people forget what happened last time to get it to repeat.