Worst "Recovery" Ever

[planosteve]

Worst Recovery Ever3.jpg (39.14 KiB) Viewed 676 times

[Bob Of Burleson]

The 1 percenters think it was a marvelous recovery.

[planosteve]

The 1 percenters think it was a marvelous recovery.

I don't believe there ever was a recovery. When Obama was inagurated in Jan 09, the FED started pouring the coal to the printing presses. The stock market turned up at the end of March. That also jacked up the inflation rate. A couple years later the average American family could no longer afford a new car. Now, the average American family can hardly afford gasoline. Or hamburger. And the "recovery" is about over.

[Bob Of Burleson]

...A couple years later the average American family could no longer afford a new car. Now, the average American family can hardly afford gasoline. Or hamburger.

None of that is visible where I live. The restaurants are packed and expensive new cars are everywhere.

[GFB]

...A couple years later the average American family could no longer afford a new car. Now, the average American family can hardly afford gasoline. Or hamburger.

None of that is visible where I live. The restaurants are packed and expensive new cars are everywhere.

I think Steve's view of what is "average"..is pretty grim.

[ann jusko]

OMG! I going to agree with Planosteve. Things are NOT good for middle America. Those families with children are being hit very hard. Everything that counts for the middle class isn't really on the inflation index, gasoline, groceries are the big ones that aren't considered.

[planosteve]

...A couple years later the average American family could no longer afford a new car. Now, the average American family can hardly afford gasoline. Or hamburger.

None of that is visible where I live. The restaurants are packed and expensive new cars are everywhere.

Yes, and over 40% of the entire country can't afford to buy food. And a lot of the shiney new cars driving around are rented (leased) not owned.
And Ann is right. The CPI is designed to cover up, not disclose, the cost of living.

[GFB]

OMG! I going to agree with Planosteve. Things are NOT good for middle America. Those families with children are being hit very hard. Everything that counts for the middle class isn't really on the inflation index, gasoline, groceries are the big ones that aren't considered.

Ann..I hate it when good, smart people get their facts wrong.

The inflation rates..all of them..are posted regularly.once a month I believe.

Headline inflation..which includes those things you said are excluded..as well as core inflation..which does not add them..are two of the inflation rates put out every time.

There is usually very little if any difference between the two numbers...here are the latest..

http://www.businessinsider.com/july-inf ... -19-2014-8

[GFB]

I hope you read that...it's short.

[GFB]

Inflation Rises At Slowest Pace Since February


Core inflation rose 0.1% month-over-month in July, a slight miss from what 0.2% increase economists had been expecting.

Headline CPI, which includes all items, also rose 0.1% over last month and 2% over last year, right in-line with expectations.

This reading marks the lowest increase for the headline index since February.

Over last year, core inflation rose 1.9%, in-line with expectations.

Expectations were for "Core" CPI, which excludes food and gas — which tend to be more volatile — to rise 0.2% over last month and 1.9% over last year.

Looking at some of the reports sub-indexes, energy prices fell 0.3% in July compared to the prior month, the first month-on-month decline since March, as each component of the energy component fell over the prior month.

The food sub-index rose 0.4% month-over-month, which the BLS notes is the fifth time in the last six month that food prices have increased by at least that much. In the last year, the index for meat, poultry, fish, and eggs has increased 7.6%. The price of dairy and related products is also up 4.3% in the last 12 months.

Following the report, Ian Shepherdson at Pantheon Macro said, "In one line: Unthreatening, but rents are gathering momentum."

Shepherdson added that, "Overall, a non-threatening report, but watch the pick-up in rents, with primary up 3.3% y/y and OER up 2.7%, fastest since '09 and '08 respectively and trending up, thanks to the continued decline in rental vacancies."

CPI isn't the Fed's preferred measure of inflation — that would be the personal consumption expenditures, or PCE report — but with both metrics remaining well below the Fed's 2% target, the central bank hasn't been pressured to raise interest rates.

[planosteve]

Inflation Rises At Slowest Pace Since February

The chart addressed wages rates, not inflation.

[GFB]

Inflation Rises At Slowest Pace Since February

The chart addressed wages rates, not inflation.

On drugs today?

[planosteve]

Compensation per hours = wage rates. Call up Brinker. Maybe he can explain it to you.

[ann jusko]

I don't have to read it.......I buy gas and go to the grocery store. It IS related since transportation costs for groceries is way up. Now you tell me how much a lb of ground chuck costs! I can tell you what it cost here and what it used to cost.
Bread? The bread that we eat is now $2.79 cents vs $2.09. Have you bought a can of soup lately? American cheese (if you can find the American cheese and not "processed cheese product! You really need to check with someone who shops for a family. I have bought a new car but my old car was 10 years old. My husband leased his but did buy his new truck. I don't cook for a crowd much anymore and am glad. Sometimes, Greg, you need to get out in the real world. Eating healthy is costly.

[GFB]

I don't have to read it.......I buy gas and go to the grocery store. It IS related since transportation costs for groceries is way up. Now you tell me how much a lb of ground chuck costs! I can tell you what it cost here and what it used to cost.
Bread? The bread that we eat is now $2.79 cents vs $2.09. Have you bought a can of soup lately? American cheese (if you can find the American cheese and not "processed cheese product! You really need to check with someone who shops for a family. I have bought a new car but my old car was 10 years old. My husband leased his but did buy his new truck. I don't cook for a crowd much anymore and am glad. Sometimes, Greg, you need to get out in the real world. Eating healthy is costly.

Ann..I'm in the real world and shop there.

You just need to know that inflation rates take in a lot more than groceries.

There are things that are getting cheaper every day..like electronics.

I don't dispute that groceries are going up..it's just that them going up..when included..don't move the numbers much.

[Red Oak]

The books have been cooked on the CPI and Inflation Rates.

[GFB]

The books have been cooked on the CPI and Inflation Rates.

Well, if you think the government agencies are lying to you..can't help you there.

I just want Ann and others to understand what it all means.

[Sangersteve]

Gas six years ago averaged $1.85 a gallon, today it's around $3.45, brisket could be bought for $.99 cents a pound, today it's over 5 bucks.

The cost for diesel @ around $3.80 is causing the cost of everything to explode.

The .gov numbers from the Obama admin are not reflecting the true cost of inflation.

[Red Oak]

The books have been cooked on the CPI and Inflation Rates.

Well, if you think the government agencies are lying to you..can't help you there.

I just want Ann and others to understand what it all means.

Well yes Guberment lies I think most half way intelligent person knows that.

Apart from that the CPI has been tinkered with in the last 35 years, to understate inflation.

[ann jusko]

GFB doesn't have children to rear. And Greg, I've been investing for a very long time, probably much longer than you. I do understand the "numbers". You kind of made fun of me for having precious metals in my port folio. I guess you don't. I also have real estate, do you? I always want to be diverse. I do buy individual stocks and have done well. Where's Mitch when you need him? Do me a favor and ask your brother how much diapers have increased in price. Just the other day, they increased the cost of rearing a child (and it doesn't include college costs). It's now $245,000. That's up quite a bit and young families are having a hard time. But you don't have to buy groceries for a family, pay for dental care, clothes (kids do outgrow clothes quickly). If you aren't hit by this increase in everything, good for you. But don't tell me that there is not inflation. You can believe the gov. numbers, but I'm not going to accept them. How many people are receiving some type of welfare? I'm glad you're insulated from the hardships some families are going through. I can't turn my back on people having a hard time.