Anybody give any thought to what our world will look like in a yr or so. I think it is almost too scary to even think about
Talking to my son last nite. We have different business but same problem
1st: We agree energy stks is the place to invest. Forget the wind mills as they are on contract and will not keep up to inflation. Banks might be good depending if the default line is not too much for capital set aside for rainy day fund. Our Canadian banks might make it depending on house defaults
2nd. We agree it won't take 15 % fed rate to tame inflation, plus Fed won't go there any way
3rd: Supply is the really big one. Not just chips but almost every thing
We have a supply problem with fertilizer and chemical. My son has a supply problem with steel. The consumer has a problem with almost everything. It isn't an issue about price. It is an issue of just getting your hands on supply and hope your supplier doesn't gouge to much
4th: We can see price controls coming which will be a disaster. Nuff said about price controls
5th: How many bank managers, wall St etc. have experienced the 1970-80 time frame to know what can happen. How many think the Fed will bail us out and stks always go up
Finally in Canada we have people selling their house in Toronto and moving 100 plus miles away into the country or small town Mayberry. They are amazed you can by a country house in the country for only 800,000.00
Thanks Wayne...great topic!
Wayne. We can't even buy a country house for what we can get for our house now. Since the mortgage is paid, no incentive to move.
"We agree it won't take 15 % fed rate to tame inflation, plus Fed won't go there any way." I lived through inflation in the 70's. As usual, the feds are behind the consumers by a long stretch. But they will catch up, and make things worse.
Supply problems for the producers, will also be a problem. Along with those who suddenly no longer have the resourses, nor the finances, to produce. Lots of farmer suicides in the 70's due to that.
I don't think that a financial meltdown (depression) will be allowed to occur. Too many politicians are invested in it. But it is still on the horizon. If anything, the government will increase debt load in order to avoid a depression.But that only puts our progeny in further harm and desparation. Not that those in govermental power care.
what the heck? the President just yesterday said the supply chain is fixed. He in fact fixed it him self. The shelves are stocked. Its all made up.