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Items tagged with: Inflation

I'll bet #Trump #voters didn't think they were getting this...

#Inflation hurts a lender.
"This has led to a #Fed that is far more concerned about keeping down inflation (a concern of #bankers) than the full #employment portion of its mandate."

Suppose you #borrow $50,000 in a year that you were paid $40,000/year. Inflation and mandated COLA pay raises makes your earnings go to $60,000/year. You aren't richer because your milk, bread, gas, and other things are more expensive too, but your loan is still $50,000 on their books. The bank feels like they lost $20,000.



#Trump #voters

Yes, I am a bit of financial data nerd

Morgan Housel said it best when he compared investing to being an airline pilot:

Ninety percent of the job is uneventful to the point of automation; ten percent of the job is terrifying and requires complex skills and a flawlessly calm demeanor.
#money #growth #capital #markets #chart #real #SP500 #after #inflation
 
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