Viewing a single comment thread. View all comments

renok_archnmy t1_j6k0wi3 wrote

Reply to comment by Trpdoc in Recession concerns overtake inflation concerns by Infamous_Sympathy_91

When I was 16 you could buy a hamburger at McDonald’s for $0.89 on Tuesdays.

Not 100% following your reply, but prices rise because people pay them. They can pay them because they can put them on credit. Right now there is a tinge of hope this shot passes and their incomes might increase and stock markets return to COVID valuations. They won’t, there’ll be defaults, prices of goods will remain high, more people will become poor, rich people will become more rich. Same as happens the last few times this happened.

If you don’t like spending whatever McDonald’s charges for a hamburger today because you could buy one in high school for next a dollar, then don’t buy McDonald’s hamburgers.

0

Trpdoc t1_j6kn2vr wrote

The point was how the hell are people affording these prices. Ok let’s say it’s bc people will default on their credit cards and that’s the reason which you all claim. Then how does any rebalancing occur. All these people plan to just default on their cards bc they want to buy $13 fried chicken sandwich

1

renok_archnmy t1_j6kt7l1 wrote

Not sure they’re planning anything. They want chicken sandwich, chicken sandwich is $14, they whip out that visa and charge it because bank account balance is $10.

6-12 months later they’ve maxxed out the credit card, can’t afford chicken sandwiches anymore and can’t afford the payments. Now they’re fucked.

It’s rebalanced in bankruptcy court, collections departments, insurance carried by the banks, debt settlements, you name it. They could’ve eaten beans and rice all year and not been in the spot. Instead they traded future credit worthiness for a chicken sandwich.

It’s literally that simple. Banks insure against this kind of loss and sell off bad loans all the time. Those get utilized for various things to avoid taxes or whatever over time. Interest rates climb. Taxes climb. That’s where it gets balanced back out.

I wouldn’t sweat it too much. Just Americans spending irresponsibly driven by consumerist lifestyles.

1

Trpdoc t1_j6kweyh wrote

Not sweating it. Just don’t want to pay $14-20 for chix sando any more

1

renok_archnmy t1_j6kxyp7 wrote

I hear ya. 10 years ago I could eat for $2/meal healthily. Now it’s $10/meal. By 2033 it’ll be $50/meal.

1