evergrande

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A major reason they weren’t as proactive leading up to ‘08 crash.

who said they weren't as proactive? and by "they" i hope assume are not just talking about the fed.

I disagree that there wasn't "troubling inflation" leading up to covid (2019).

CPI/RPI/etc are not an accurate measures of inflation.
 

lib123

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who said they weren't as proactive? and by "they" i hope assume are not just talking about the fed.

I disagree that there wasn't "troubling inflation" leading up to covid (2019).

CPI/RPI/etc are not an accurate measures of inflation.

“They” is mainly the Fed, but also includes the government (fiscal policy). There were months of rumblings leading up to the ‘08 crash (‘07 subprime hedge fund implosions, Bear Stearns collapse). Had inflation not been rising rapidly in summer of ‘08, they definitely would’ve been more proactive. Same with now. Inflation is much more troubling now than it was in 2019.
 

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“They” is mainly the Fed, but also includes the government (fiscal policy). There were months of rumblings leading up to the ‘08 crash (‘07 subprime hedge fund implosions, Bear Stearns collapse). Had inflation not been rising rapidly in summer of ‘08, they definitely would’ve been more proactive. Same with now. Inflation is much more troubling now than it was in 2019.

do you think inflation was consistently low between 2006 - 2018?
 

lib123

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do you think inflation was consistently low between 2006 - 2018?

Relatively speaking, inflation hasn’t been like this since 2008. That’s why the Fed was able to keep interest rates historically low post-crisis.
 

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Relatively speaking, inflation hasn’t been like this since 2008. That’s why the Fed was able to keep interest rates historically low post-crisis.

was inflation relatively low relative to historical trends during the period i mentioned?

what value do you think inflation actually was approaching 2008?
 

lib123

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was inflation relatively low relative to historical trends during the period i mentioned?

what value do you think inflation actually was approaching 2008?

Yes, inflation has been relatively low post-2008 financial crisis. That's why interest rates have been so low. It started rising 2006-08, but even during that period it wasn't as high as it is now. Official annual inflation was 3.8% in '08, it's 5.4% currently. During that period Fed interest rates were 3-4% vs 0% now. In a near-future crash not only will the Fed not be able to have as much impact (interest rates are already extremely low), cutting interest rates any lower without demonstrated deflation could spark stagflation.
 

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Yes, inflation has been relatively low post-2008 financial crisis. That's why interest rates have been so low. It started rising 2006-08, but even during that period it wasn't as high as it is now. Official annual inflation was 3.8% in '08, it's 5.4% currently. During that period Fed interest rates were 3-4% vs 0% now. In a near-future crash not only will the Fed not be able to have as much impact (interest rates are already extremely low), cutting interest rates any lower without demonstrated deflation could spark stagflation.

ok.

what value do YOU think inflation actually was approaching 2008?
 

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Aggregate lending by Chinese banks to developers came to 14.2 trillion yuan ($2.2 trillion) at the end of June, according to Moody's Investors Service. This accounts for 7.4% of total bank loans, Moody's says, and is equivalent to more than half of the 25.5 trillion yuan in net capital held by commercial banks in government data.
 

lib123

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ok.

what value do YOU think inflation actually was approaching 2008?

Aside from gas, it wasn't as high as it is now IMO. Goods across the board weren't increasing in prices as much as they have been in the last year. I agree the official rate is lower than the actual, both now and back then.
 
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