INFLATION--FED's cutting rates again...

[Monahorns]

Or, maybe the cereal company should, pay said CEO $x,000,000 with a 10% increase per year and pass the savings on to the consumers, you know, the people. This is one of many examples of "inflation" being related NOT to increasing inputs but increasing overhead.

Yay! We get $0.0001 back!

 

[nashhorn]

Name a year (or a time) when there wasn’t criticism of CEOs’ pay? That’s not the cause of this inflation. Although I think, like our entertainers pay, it’s obscene.

 

[HornHuskerDad]

Agree, but if you think your cats are calling you "Master" you are incredibly naïve.

Sangre, I realize that I'm deluding myself with the use of the term "Master" - but the cats go along with the joke as long as it's convenient for them.

 

[Sangre Naranjada]

Gotta have a plastic crack pipe in there as a toy for the Okie kids.

Hell, just get Hunter Biden and the Feds to put a real one in every box.

 

[humahuma]

One way to control CEO salary is tie his salary as a multiplier to the average employee salary. Propose that at the next stock holder meeting and see how far that flies.

 

[iatrogenic]

One way to control CEO salary is tie his salary as a multiplier to the average employee salary. Propose that at the next stock holder meeting and see how far that flies.

It won't fly because it's a dumb idea. Why in the world should the top executive's pay be tied to anything other than performance of the stock? The goal is to maximize shareholder value. If the board doesn't feel lke the CEO is doing that, by looking at the competition, he gets fired and gets 0 x everybody's compensation.

 

[Monahorns]

It won't fly because it's a dumb idea. Why in the world should the top executive's pay be tied to anything other than performance of the stock? The goal is to maximize shareholder value. If the board doesn't feel lke the CEO is doing that, by looking at the competition, he gets fired and gets 0 x everybody's compensation.

Well, now it is more about stakeholders not shareholders and they are scored on political critieria in the D.E.I ideology.

 

[humahuma]

I guess you didn’t read the see how far that flies part. Meaning it won’t fly.

 

[Chop]

Bloomberg is reporting nine percent (9.00%) consumer price inflation in the Rocky Mountain states. Tough winter on the Northern Range.

 

[Chop]

As it gets closer to November, if inflation isn’t around 5% or below ( and I doubt that it will be…) it could spell big trouble for the incumbent party in the elections. Normally, a concern would be that by raising the rates, the Fed could drive unemployment up. But in today’s bizarre environment, there’s not much of an unemployment problem. Rather, there’s a labor shortage in many fields. All this points to the Fed raising rates—bit by bit until inflation is under control. That’s the Classical / textbook solution for this situation.

 

[Horn2RunAgain]

Fritos are in Short supply up here in NW LA................

Funny you should mention this, we had the same issue last week. Couldn't find any for our chili. Anywhere. Mid week I finally saw some but I really needed some last weekend.

 

[Mr. Deez]

Complaining about CEO pay is a little like complaining about professional athlete pay. Superficially it looks like the pay is crazy, but the bottom line is that pay is based on supply and demand. They command big salaries because not many can be an effective CEO and having a good one is worth the money. It's pretty much that simple.

 

[Monahorns]

Complaining about CEO pay is a little like complaining about professional athlete pay. Superficially it looks like the pay is crazy, but the bottom line is that pay is based on supply and demand. They command big salaries because not many can be an effective CEO and having a good one is worth the money. It's pretty much that simple.

I agree, but also many CEOs are put there by the good ole boy system. But if they drive growth they get thrown out pretty fast, so there is objective accountability.

 

[Chop]

Biden is now saying the way to beat inflation is by passing his Build Back Better legislation. He also talked about the big 4 meat packers and meat inflation though—maybe his staff reads these boards.

Naaaaahhhhh, can’t be. He said nothing about switching from the dollar to Bitcoin.

 

[Monahorns]

Biden is now saying the way to beat inflation is by passing his Build Back Better legislation. He also talked about the big 4 meat packers and meat inflation though—maybe his staff reads these boards.

Naaaaahhhhh, can’t be. He said nothing about switching from the dollar to Bitcoin.

The only way to beat inflation is to print more dollars and hand it to the government. Sounds like a solid plan.

 

[Mr. Deez]

Biden is now saying the way to beat inflation is by passing his Build Back Better legislation. He also talked about the big 4 meat packers and meat inflation though—maybe his staff reads these boards.

Naaaaahhhhh, can’t be. He said nothing about switching from the dollar to Bitcoin.

That's like saying the only way you're going to lose weight is by eating more pizza and cheeseburgers.

 

[Chop]

That's like saying the only way you're going to lose weight is by eating more pizza and cheeseburgers.

Now wait a minute. Pizza and cheeseburgers have all the major food groups: meat, grain, dairy, vegetables (sometimes), and fruit (tomatoes). A well balanced meal. Ya know, health food.

 

[Mr. Deez]

Now wait a minute. Pizza and cheeseburgers have all the major food groups: meat, grain, dairy, vegetables (sometimes), and fruit (tomatoes). A well balanced meal. Ya know, health food.

Lol. Ok throw chili cheese fries and beer into the equation too.

 

[Garmel]

With beer you get all you need from the grain group.

 

[nashhorn]

With beer you get all you need from the grain group.

That’s so funny because I remember in HS we used to say “you could live off beer” because of that same rationale. Unfortunately some of us seemed to be trying out the theory. Man I wasted a lot of days back then.

 

[mb227]

That’s so funny because I remember in HS we used to say “you could live off beer” because of that same rationale. Unfortunately some of us seemed to be trying out the theory. Man I wasted a lot of days back then.

Did you WASTE them or were you just wasted?

Besides...you seem to have largely survived intact...

 

[nashhorn]

Ha, wasted. Trust me, after what I thought was a healthy state I am finding that, now in my 70’s, things are deteriorating at such a pace I’m frequently blaming my life long affection with alcohol.

 

[Chop]

With beer you get all you need from the grain group.

If it's whole grain beer...

 

[Mr. Deez]

With beer you get all you need from the grain group.

We laugh at that, but Guinness is actually a pretty healthy beer.

 

[Chop]

Not sure if the Fed broke out their rose colored glasses, or if they're just that much smarter than everybody else. It would be nice if they're correct, but I have my doubts as to their latest projections.

Inflation Expectations Decline at the Short- and Medium-Term Horizons - FEDERAL RESERVE BANK of NEW YORK

Inflation Expectations Decline, NY Fed Reports

 

[Chop]

1. January Inflation Hotter than Expected. The January Consumer Price Index was 7.5% year-over-year versus the 7.3% consensus forecast. After some speculation that inflation would come in under forecasts for January, this report pushed stocks lower and rates higher. We do not believe the Federal Reserve (Fed) will hike rates 50 bps in March (we think only 25 bps), but this inflation report may perpetuate the fear of a more aggressive increase while serving as a near-term headwind to further equity market gains. The January CPI reading does not change our view that inflation will begin to ease later in 2022 (see Commentary section below for more).

...

3. Biden’s Approval Rating Hits New Low.As the mid-term elections slowly approach, the question is can President Biden (and Democrats overall) recover? Although the president is facing approval rating pressure across the board, polling shows that inflation is a primary driver. Current numbers are consistent with Democrats losing at least 30 seats in the House and at least a couple of Senate seats. We believe that should Democrats lose the House, legislation will grind to a halt. The universe of bipartisan agreement is very small, and if Biden does not seek reelection, the incentive to compromise falls even further. A lack of legislative movement is often good for stocks, especially given the recent call for higher corporate taxes.

[the above and link are just some of BMT's opinions--not necessarily mine, and they are most definitely not investment advice. Do your research, and consult your own qualified investment advisor]
BMT Monday Market Insights – February 14, 2022 | BMT

 

[HornHuskerDad]

Biden’s Approval Rating Hits New Low.

At lease he can console himself by the fact that he has higher ratings than Kamala (if that's still true).

Although the president is facing approval rating pressure across the board, polling shows that inflation is a primary driver.

Not surprising - pocketbook issues drive voter sentiment.

A lack of legislative movement is often good for stocks, especially given the recent call for higher corporate taxes.

The markets like steadiness and predictability - tends to mute the emotional movements and focus on financial data.
I, for one, will be very happy to see the GOP take back Congress and put the brakes on the progressive agenda. "All brakes, no gas" would be good in this case.

 

[mchammer]

This is what I think will happen :

- prices moderate for goods as supply chain issues get relieved by summer.
- however what relief is provided will be met with higher labor costs, thus the prices are never going back down.

So I think one part modulates (materials) while labor becomes more costly that eventually comes together to slowly reduce the inflation rate back down to normal level, but at much higher price levels.

 

[Chop]

This is what I think will happen :

- prices moderate for goods as supply chain issues get relieved by summer.
- however what relief is provided will be met with higher labor costs, thus the prices are never going back down.

So I think one part modulates (materials) while labor becomes more costly that eventually comes together to slowly reduce the inflation rate back down to normal level, but at much higher price levels.

That sounds like a pretty sound projection.

 

[theiioftx]

The last time we saw inflation like this it was oil related too and a dumbacrat was in office.