Inflation Rate Worst in 17 years [Archive]

narlus

01-16-2008, 10:21 AM

http://news.yahoo.com/s/ap/20080116/ap_on_bi_go_ec_fi/economy_107

Anyone surprised?

Consumer prices rose by 4.1 percent for all of 2007,

good thing our average wage increase is 3%. :disgust:

Westy

01-16-2008, 10:22 AM

Did you like the part about "core" (ex energy and food) being contained, freeing the fed's hands for further rate cuts...

That would be great. Everyone can stay home in their cold unheated Mcmansions and starve to death.

Any one else notice the price of food going up quite a bit. I've even started drinking cheap beer again and I can't get out of the grocery store without spending $100 for just a few days worth of food.

narlus

01-16-2008, 10:25 AM

if you drink IPA, hops are definitely pricier due to some failed crops.

Plummit

01-16-2008, 10:28 AM

but don't get hurt (or sick from cheap beer) b/c health care went up significantly faster than wages as well.

Westy

01-16-2008, 10:29 AM

if you drink IPA, hops are definitely pricier due to some failed crops.

A 6er of Dogfish Head 60 minute IPA is pushing $10 around here these days. Needless to say it is rare I drink the good stuff anymore.

It can't just be hops causing it. A 12 pack of Beast Ice is almost $6 anymore, I'm pretty sure they use lawn clippings instead of hops.

$tinkle

01-16-2008, 10:40 AM

we can do better (http://www.nytimes.com/2006/05/02/world/africa/02zimbabwe.html?ex=1304222400&en=e4f95916b4e5d098&ei=5088&partner=rssnyt&emc=rss)

Westy

01-16-2008, 11:33 AM

The best part is with low interest rates and high inflation, responsible people like myself who actually save money get screwed.

$tinkle

01-16-2008, 11:37 AM

:stupid:

LordOpie

01-16-2008, 11:43 AM

The best part is with low interest rates and high inflation, responsible people like myself who actually save money get screwed.
You could always invest your money.

I'm sure now is a pretty good time for all kinds of buy opportunities.

Echo

01-16-2008, 11:43 AM

I'm embarrassed to admit it, but I can buy a 30 pack of Coors Light for the same price as a 6 pack of IPA, and I have transgressed a few times recently.

But I am brewing my own beer now too, so I don't totally fail at beer.

Echo

01-16-2008, 11:44 AM

You could always invest your money.

I'm sure now is a pretty good time for all kinds of buy opportunities.
I wish. All of my investments are in the toilet right now. It makes me sick to my stomach to even look at them.

LordOpie

01-16-2008, 11:45 AM

...so I don't totally fail at beer.
Sorry, there is ZERO redemption for purchasing Coors Light. You cannot be saved.

Echo

01-16-2008, 11:48 AM

Sorry, there is ZERO redemption for purchasing Coors Light. You cannot be saved.
I was afraid of that. Oh well, at least I'll be rich.

$tinkle

01-16-2008, 11:59 AM

it gets worse:
http://www.tvweek.com/blogs/james-hibberd/2008/01/american_idol_premiere_lowest.php

dante

01-16-2008, 12:49 PM

we can do better (http://www.nytimes.com/2006/05/02/world/africa/02zimbabwe.html?ex=1304222400&en=e4f95916b4e5d098&ei=5088&partner=rssnyt&emc=rss)

well, at least that gives Bernanke something to shoot for. :rimshot:

dante

01-16-2008, 01:06 PM

I wish. All of my investments are in the toilet right now. It makes me sick to my stomach to even look at them.

So buy more... I still think it's going to get worse before it gets better, but it's always better to buy in a down/declining market. Hell, even online savings accounts give 4%+. Just about enough to keep up with inflation, but not stellar. Hell, buy solid companies that offer a good dividend:

Chevron Texaco - 2.6% dividend yield
AT&T - 4.2% yield
Petro China - 3.6% yield

and you get companies that have a solid growth history, solid projections for the next 5-10 years, and in the case of AT&T, a dividend that beats the rate of (real) inflation. Or you can do like I did, and buy a (hopefully) appreciating asset (a house!!). As interest rates drop you can lock in better rates, and holding a tangible asset protects you from inflation as well. and you can sleep in it!! :shocked:

Westy

01-16-2008, 01:12 PM

You could always invest your money.

I'm sure now is a pretty good time for all kinds of buy opportunities.

Large majority of it is invested but none has been doing very well for the past few years. I keep trying to make an apointment with my financial advisor but he won't call me back. I need to change banks and get a new advisor but it is such a headache moving everything Ihaven't had the time to do it lately.

neanderthal

01-16-2008, 01:48 PM

Large majority of it is invested but none has been doing very well for the past few years. I keep trying to make an apointment with my financial advisor but he won't call me back. I need to change banks and get a new advisor but it is such a headache moving everything Ihaven't had the time to do it lately.

If your financial adviser won't return your calls, it's time to dump that guy. If you read a few basic financial management books, you can manage your money yourself. It's really not that hard. My favorite personal finance book is "Common Sense on Mutual Funds" by John Bogle. John Bogle is a former CEO of Vanguard and championed index funds.

Echo

01-16-2008, 01:50 PM

So buy more... I still think it's going to get worse before it gets better, but it's always better to buy in a down/declining market.
I'm fully aware of that. But it's still a hard pill to gag down.

jimmydean

01-16-2008, 01:55 PM

I hadn't noticed much until last week. It was $50 to fill the tank of my Toyota truck and I spent $102 on a short list of needed food items. The full list has been running up to $200 and at first I thought it was just because of the items we have been getting (healthier selections and more natural foods).

But when the total came up last night for what amounted to 3 bags worth, I was blown away. It wasn't very long ago a stuffed cart was $125. At last nights rate, a full cart would have been well over $250 for about 2 weeks worth.

$tinkle

01-16-2008, 01:56 PM

ok, something's happening, but not sure what: HPQ - with a turning radius of an aircraft carrier - has gone up 5% in 3 hrs., despite intel's bloodletting. volume is a third higher than normal.

dante

01-16-2008, 02:14 PM

ok, something's happening, but not sure what: HPQ - with a turning radius of an aircraft carrier - has gone up 5% in 3 hrs., despite intel's bloodletting. volume is a third higher than normal.

markets were weird today. trying to figure out if its bottom-feeders or if someone's got some inside info on what the fed's going to do at the end of the month. 75bp would certainly be a shot in the arm for the market, but how long that would work before the market got over their cheap-interest rates rush and went back to dropping like a rock?

Westy

02-26-2008, 08:10 AM

Inflation jumps 1% last month
http://news.yahoo.com/s/ap/20080226/ap_on_bi_go_ec_fi/economy_35

Awesome, in economic terms if you have a savings account you are losing money.

jimmydean

02-26-2008, 10:45 AM

When I saw the sign at the gas station, I thought it had gone down. $3.08 isn't bad until I noticed that was the price for e85. Regular Unleaded was $3.18, premium was $3.58.

So by the Summer drive time, we should be in the $5 range at this rate. That's awesome.

$tinkle

02-26-2008, 10:55 AM

So by the Summer drive time, we should be in the $5 range at this rate. That's awesome.that actually is very awesome. almost as awesome as toshi's $20/gal.

i'm waiting to find out if i'm supposed to start working in denver next month through the summer, which is a 110 mi roundtrip commute. currently, we get $0.475/mi, but if gas sustains ~$5/gal, they'll bump it to $0.60-$.80. in other words, i'll make at least $50/hr for 2 hrs every day. only pitfall is my jetta is a VR6, not a TDI. yeah, i know these numbers are squishy.

LordOpie

02-26-2008, 11:06 AM

that actually is very awesome. almost as awesome as toshi's $20/gal.

i'm waiting to find out if i'm supposed to start working in denver next month through the summer, which is a 110 mi roundtrip commute. currently, we get $0.475/mi, but if gas sustains ~$5/gal, they'll bump it to $0.60-$.80. in other words, i'll make at least $50/hr for 2 hrs every day. only pitfall is my jetta is a VR6, not a TDI. yeah, i know these numbers are squishy.

Someday the lightrail will go between Denver and CS. If you're working in LoDo, drop your car at the Lincoln/C-470 & I-25 interchange, wherever the lightrail currently begins.

In fact, you could ride your bike up Hwy 105 to the path along C-470 to the lightrail once or twice a week, assuming you can get away with doing that.

$tinkle

02-26-2008, 11:42 AM

Someday the lightrail will go between Denver and CS. If you're working in LoDo, drop your car at the Lincoln/C-470 & I-25 interchange, wherever the lightrail currently begins.

In fact, you could ride your bike up Hwy 105 to the path along C-470 to the lightrail once or twice a week, assuming you can get away with doing that.i've actually considered that (i'd be in littleton working on administering a missile system). in fact, i was looking at a redline SS commuter this wknd. i don't know where to go from just north of castle rock/happy canyon. 85 is finished through to santa fe blvd, ya?

there's also FREX (http://www.frontrangeexpress.com/)

LordOpie

02-26-2008, 11:57 AM

yeah, hwy 85/Santa Fe isn't too bad. It's been a while, but I think if 85 is too busy, you can swing over on Titan Rd and ride up through the Chatfield Reservoir.

Double check maps :)

ire

02-26-2008, 12:16 PM

Awesome, in economic terms if you have a savings account you are losing money.

Good thing I spend all of my money every month!

dante

02-26-2008, 01:37 PM

Inflation jumps 1% last month
http://news.yahoo.com/s/ap/20080226/ap_on_bi_go_ec_fi/economy_35

Awesome, in economic terms if you have a savings account you are losing money.

Markets jump 150pts on the news... huh? :twitch:

Have a bad feeling about this. Mortgage rates went from 5.5 in Jan to 6.375 today. The fed's trying to free up cash to keep the economy going, but it seems to be producing the exact opposite in the mortgage market. Anybody want to guess what this is going to do to home sales for Feb??

Westy

02-27-2008, 09:56 AM

Fed to cut rates (http://news.yahoo.com/s/ap/20080227/ap_on_bi_ge/bernanke_congress_31)

This should help. Can anyone say stagflation?

I think I am going to take out a second mortgage and just buy a bunch of gold.

narlus

02-27-2008, 10:07 AM

i've actually considered that (i'd be in littleton working on administering a missile system).

working w/ stinkyboy's ex-neighbor?

$tinkle

02-27-2008, 10:11 AM

Fed to cut rates (http://news.yahoo.com/s/ap/20080227/ap_on_bi_ge/bernanke_congress_31)

This should help. Can anyone say stagflation?part of stagflation is rising unemployment (a dysphemism for a surplus on workers). so unemployment is rising from 4.8% to 5.2%, which alarmists would say "that's a jump of 10% in the unemployment rate!"
this is a far cry from being at economic threat-level midnight.

valve bouncer

02-27-2008, 10:14 AM

i've actually considered that (i'd be in littleton working on administering a missile system).
Teacher- And what does your daddy do little Stinkle?
L'il Stink- He finds better and more efficient ways to kill the brown people from thousands of miles away
Teacher-Oh, he works for a pharmaceutical company.
L'il Stink- (blinks and squeezes his Condi doll a little tighter)

narlus

02-27-2008, 10:15 AM

Teacher- And what does your daddy do little Stinkle?
L'il Stink- He finds better and more efficient ways to kill the brown people from thousands of miles away
Teacher-Oh, he works for a pharmaceutical company.

hey, i take exception to that!

http://en.wikipedia.org/wiki/Pneumococcal_conjugate_vaccine

valve bouncer

02-27-2008, 10:18 AM

hey, i take exception to that!

http://en.wikipedia.org/wiki/Pneumococcal_conjugate_vaccine

Want me to change it to Union Carbide?

$tinkle

02-27-2008, 10:21 AM

Want me to change it to Union Carbide?you'd make a good ex-wife

syadasti

02-27-2008, 10:24 AM

Want me to change it to Union Carbide?

Reminds me of Snog (http://en.wikipedia.org/wiki/Snog) - Corporate Slave.

LordOpie

02-27-2008, 10:42 AM

part of stagflation is rising unemployment (a dysphemism for a surplus on workers). so unemployment is rising from 4.8% to 5.2%, which alarmists would say "that's a jump of 10% in the unemployment rate!"
this is a far cry from being at economic threat-level midnight.

I know we all know that the disenfranchised are not counted in the unemployment numbers. Not new news.

However, I think the disenfranchised portion of unemployment was consistent through the back half of the 1900s.

I suggest that unemployment statistics are more flawed these days with an exponential change in the unemployed not counted and the under-employed.

I say the unemployment number is much lower than it normally is by a full percentage point.

jimmydean

02-27-2008, 11:14 AM

I say the unemployment number is much lower than it normally is by a full percentage point.

I would actually be surprised if it was only a point. I know in Oregon, just counting the unemployed and leaving the under employed, it would be at least 2 more points.

$tinkle

02-27-2008, 11:19 AM

I suggest that unemployment statistics are more flawed these days with an exponential change in the unemployed not counted and the under-employed.well if we're going to start doing that, then howsa bout down-counting all those useless double- and triple-dipping gov't workers who do exactly jack-sprat for upper 5figs/yr + bennies?

LordOpie

02-27-2008, 11:36 AM

well if we're going to start doing that, then howsa bout down-counting all those useless double- and triple-dipping gov't workers who do exactly jack-sprat for upper 5figs/yr + bennies?

How's that relate to unemployment?

X3pilot

02-27-2008, 11:43 AM

Seriously, how many posting here were consumers in 1980/81? I'm not trying to be a smart ass, just establishing a point of reference. This economy is as bad as that was then, but will we pull out as quickly as we did then. Gas/oil was about the same price then, relative $$, but we didn't have the WTO back then and the markets were not "globalized" Smart people help me out here...

LordOpie

02-27-2008, 11:50 AM

$tinkle

02-27-2008, 12:05 PM

How's that relate to unemployment?you stated the stats are flawed vis-a-vis over- -vs- under-employed

i think i broke my dash key on that post

LordOpie

02-27-2008, 12:13 PM

you stated the stats are flawed vis-a-vis over- -vs- under-employed

i think i broke my dash key on that post
so being OVER-employed somehow balances that out?

$tinkle

02-27-2008, 12:15 PM

so being OVER-employed somehow balances that out?it holds as much validity. point is, if you were somehow greatly pleased with the numbers, why even bring it up? and if you're not going to bring it up unconditionally, then it shouldn't be considered.

i see it as cherry-picking, kind of like the **** H8R's pulling in his rep thread.

rttihvb'c

jimmydean

02-27-2008, 12:26 PM

LordOpie

02-27-2008, 12:31 PM

it holds as much validity. point is, if you were somehow greatly pleased with the numbers, why even bring it up? and if you're not going to bring it up unconditionally, then it shouldn't be considered.

No.

Under-employed implies that people aren't making enough to cover their standard expenses. Sorry I didn't clearly define that earlier.

Point is, people are accepting jobs that are beneath their typical pay scale because they don't want to be completely unemployed, for whatever reason.

Westy

02-27-2008, 12:33 PM

LordOpie

02-27-2008, 12:42 PM

$tinkle

02-27-2008, 12:47 PM

I was 9 and I have to say, I made a lot less in 1980 than I made in the '01 slump. I feel much better now, thanks.my dad still has the bike i used on my paper route back then. and yeah, i make significantly more now than then. then, i could only afford to play Defender, Firepower, & Gorgar for an hour or two at the local headshop.

jimmydean

02-27-2008, 12:48 PM

Point is, people are accepting jobs that are beneath their typical pay scale because they don't want to be completely unemployed, for whatever reason.

I drove a tow truck for $10 an hour + 25% commission after hours because unemployment paid $10 an hour and I was sick of daytime TV. After about 4 months, I was able to land a job in software again.

Had I not taken the tow job, my unemployment would have run out in a few months and I would have been screwed. So I consider the time I spent driving as underemployment because I could not have supported my family on what I was making for much longer.

I also learned some cool skills (winch recovery and stuff) and learned a new appreciation for my white collar job. But that was one of the hardest times in my life.

$tinkle

02-27-2008, 12:50 PM

No.

Under-employed implies that people aren't making enough to cover their standard expenses. Sorry I didn't clearly define that earlier.

Point is, people are accepting jobs that are beneath their typical pay scale because they don't want to be completely unemployed, for whatever reason.looks like some people shouldn't be rollin on dubs & using up all their minutes by the 3rd of each month.

these figures had best include personal responsibility, which as we've all seen, is in short supply. they can't pay their light bill but they have all the amenities of people 2 tax brackets higher??? double-ewe-tee-eff?

Westy

02-27-2008, 12:50 PM

True, but if those idiots weren't helped, you'd be hurt far worse, theoretically.

I don't really buy that not to mention it doesn't make people think twice about being stupid next time.

jimmydean

02-27-2008, 12:53 PM

The current economic problems are fairly specific to the housing and credit. It may spill over but right now it is the one sector. What pisses me off if by continuously reducing interest rates and driving inflation we are helping those that ****ed up to the cost of everyone.

Some of the people that are hurt are my wifes friend who owns a fencing company in Southern California. Because all the houses that are being built (or were being built) are unsold, his business has tanked. 2 years ago he couldn't keep up. Same goes for my nephew who owns a gutter company.

So housing has a lot of ripple beyond builders and realtors. But I do agree that the Fed can't save stupid people and many of us will suffer because of them.

LordOpie

02-27-2008, 12:56 PM

I drove a tow truck for $10 an hour + 25% commission after hours because unemployment paid $10 an hour and I was sick of daytime TV. After about 4 months, I was able to land a job in software again.

I hear ya bro, you did the right thing. I worked at a CostCo in the bakery washing pots and pans for three months until I could finally find a job again. It was more money (not much) than being on unemployment.

Westy

02-27-2008, 12:57 PM

Some of the people that are hurt are my wifes friend who owns a fencing company in Southern California. Because all the houses that are being built (or were being built) are unsold, his business has tanked. 2 years ago he couldn't keep up. Same goes for my nephew who owns a gutter company.

So housing has a lot of ripple beyond builders and realtors. But I do agree that the Fed can't save stupid people and many of us will suffer because of them.

Lumber and tooling companies will also hurt. But this is a market correction as much as anything. Anyone who benefitted from the boom should have been prepared for the crash. At least now I might be able to get someone other than a crackhead with a ladder to put a new roof on my house.

dan-o

02-27-2008, 01:28 PM

At least now I might be able to get someone other than a crackhead with a ladder to put a new roof on my house.

"you" (ie. the consumer) always had that option, most just chose to use the crackhead and save $.

Westy

02-27-2008, 01:33 PM

Not really. It became hard to find any real professionals over the past few years as they were too busy working on large developments.

jimmydean

02-27-2008, 04:03 PM

Lumber and tooling companies will also hurt. But this is a market correction as much as anything. Anyone who benefitted from the boom should have been prepared for the crash. At least now I might be able to get someone other than a crackhead with a ladder to put a new roof on my house.

Agreed.

That's why next winter the wife and I are going house shopping. Low interest rate fixed mortgage on a nice McMansion foreclosure is in my future.