@TrevorFGillan@UkrainianMail Their next house, since rates are either too high to finance their next house, or, they don’t want to give up their current house. This housing lock-in has created many folks to just stay in their current house, driving housing prices up as we struggle to increase supply
@TrevorFGillan@UkrainianMail The chart is predominantly driven by stagnating wages. The IRR of houses, using the same data set you’re using of St. Louis Fed, is ~4% over the last 17 years. Sure, that has been accelerating over the last few years, but as we leave the ZIRP-era, households can’t afford…
@TrevorFGillan@UkrainianMail TLDR:
1) You’re receiving cash flows from all tax revenues (including corporate) which means you’re just betting on American growth
2) China owning our T-Bills poses a threat to us in terms of them offloading it quickly, but actually is incredibly beneficial to finance our debt
@TrevorFGillan@UkrainianMail That growth could come from corporate taxes and corporate growth, or it could come purely from the government printing money. But the reason the rates are what they are is that you would assume we don’t just print and the dollar won’t be devalued + America grows
@TrevorFGillan@UkrainianMail I like the train of thought but I think you need to expand tax revenues to everything - not just the American worker. When you buy a T-Bill you are betting on the relevance and growth of the American economy in X years. That growth could come from wage growth…
Afternoon thoughts - what if airline tickets became like concert tickets where you could buy and sell them like a market. Would this drive up costs from scalpers? Would you as the consumer appreciate this flexibility? A refund only market seems obsolete.
Vintage / Thrift Stores are overpriced garbage. Anyone who purchases something from there is getting ripped off blindly and upcharged for using someone’s leftovers. THIS DOES NOT INCLUDE MY VIEWS ON DONATING CLOTHES. #ChangeMyMind