Inflation Is Hot, Hot, Hot!
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Yeah, ole, ole, ole, ole. Yeah, Buster Poindexter, hot, hot, hot. He wasn’t singing about inflation. I do prefer another song entitled Hot, Hot, Hot by The Cure. Big fan of The Cure. But anyway, headline CPI in another, see I told you so. They keep adding up here on the program. All my see I told you so’s and a.
a subway token will get me a ride on the subway, just so you know. Anyway, neither here nor there. Consumer prices print hotter, hot, hot, hotter than expected. Again, surge in energy, shelter costs, yada.
Yeah, the energy and services sector as well.
What can the Fed do? What can the Fed do? Oh, because the Fed’s got to stay higher for longer. Really? How’s that been working out when it comes to shelter costs? How has that been working out when it comes to shelter costs? Has it helped? Has it made prices go down? No.
because again, there’s a supply side to the equation. And again, we need to make more house, but we also need to help with regulations and taxes as well. Here there’s things that they don’t poke about on the business program. So think about it for a second. We’ve explained this concept before, golden handcuffs, and in many areas, very hot real estate markets around the country. People say, I’m not moving.
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I’m not moving, no way am I gonna move. If I move, then I’m going to lose my tax basis here and I’m paying very low rates on these taxes. If I move somewhere else, I’m not gonna be able to afford to do that. Now there’s other areas of the country where they just raise it anyway. Those are the areas of the country where they sell a lot of those Tom Selleck reverse mortgages because older people can no longer afford to stay in their house.
One of the things that could be done is you could transfer your tax bases to a new location. Again, these are many times older people that want to downsize, that want to downsize their house, they want to get a smaller home. They’ve been in a home for, let’s say three decades, three decades, houses paid off. But if they actually want to move to a smaller home, they’re going to end up paying more in taxes. Does that hurt the housing market? Absolutely it does. Energy costs.
are up, service costs are up, hot, hot, hot. Fed can’t do a damn thing about it. We have printed our way into oblivion, okay? And we’ve explained it before. It’s the old Jay Powell to infinity and beyond. So what’s the, what happens? What happens there? Well, geez, 65 % of Americans say they live paycheck to paycheck.
65 % of Americans say they live paycheck to paycheck. What’s the number one thing? The number one financial stressor out there, guess. Guess. If you guessed hot, hot, hot inflation, you’d be right. 69 % site inflation is why they’re living paycheck to paycheck. Now we talk about how compounding is the royal road to riches.
Again, rule number one, Markowski investments, rules of the road when it comes to saving money, finance or planning and how it can work against you. Works against you when obviously you have debt and you’re paying interest on that debt, you don’t pay it off in particular high interest debt like credit card debt and guess what? Works against you when it comes to inflation. I was watching one of the Brady Bunch boxes.
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One of the Brady Bunch boxes today and the Brady Bunch box on, it was on CNBC. You had one economist professor from the University of Michigan that was so vapid. Again, I got to hand it to Becky Quick. One of the best in the business on Squawk Box was just like called her out. It’s like, are you kidding me? Because this again, obviously a left -wing professor, University of Michigan economics.
Oh, that’s great. The feds doing a great job. Inflation is under control. We should be thrilled at where it is. And again, quick, a mom’s like, are you kidding me? You do understand that this compounds, right? And his head’s on top of one another and prices haven’t come down. But anyway, again, inflation, hot, hot, hot. Watchdog on wallstreet .com.
