I haven't been paying as much attention to the news ( hello mental health and calming nervous system )but for the last several years/decade, I've wondered if all we've been taught about investing and managing money will suddenly shift.
Seems it
I also think about how real estate has always been an investment vehicle but with global warming/climate catastrophe it seems that sooner rather than later it may not be a wise move. And it doesn't seem that anyone is talking about this! Random things I think about...
Thank you so much for putting this in such relatable terms, helpful to me and likely a bajillion others. Really helpful for someone who avoids these topics because they confuse and worry me. Have a great weekend.
Mutual Aid and community involvement are things to cultivate right away. I’ve also started paying for more things with cash, rather than a credit card because it really makes me aware of the cost of things at the moment of purchase.
a) the world is on fire, so instead of being responsible, I decided to surprise one of my oldest friends at her baby shower this weekend. We live in different states now and it's her first baby and money is being inflated to the moon and everything is crazy, so WHAT DOES IT EVEN MATTER?!
c) (not to be counted among the contradictory thoughts lol) also, separately, there's a little piece of unrelenting faith that there is always a remnant of hope somewhere
Grateful as always, Lindsey (and now Alicia, too!) x
And now Bannon is calling for Bessent to head both the Treasury and the Fed, the amount of overreach taking place in every aspect of government is so egregious.
I keep thinking about how 10% of consumers are doing nearly 50% of the spending. If a country relies on mostly consumption for growth and the bulk of that consumption comes from a sliver of the population, there is only so long that can continue.
Love the smart, deep detail on this post. The “additional resources” put it over the top. Thanks for sharing great insights, sorry this comes from your sleepless nights!
An additional detail that worries me: Miran’s dissent in favor of a half point decrease rather than quarter point.
Also of interest: legislation presented by French Hill (R - House financial services committee chair) which would end the Fed’s “dual mandate” and narrow their focus to containing inflation
I read (in the NYT I think) that a couple more small cuts are expected to follow, but more concerning is the possibility of the erosion of Fed independence. I think we can manage the former even with some fallout, but the latter, no. That’s a hard one to come back from.
This is the best article, thanks!!! This is on my mind too and it’s great to hear a summary from a financial expert. I am temp in Argentina for the rest of the year so have a close look at high inflation, high tariffs, and universal health care.
I don’t have a lot of money but I am thankful to be nearly debt-free. Paid off my (very old and cheap not fixed up fixer-upper) house just this month. Hope our ancient car keeps rolling. I know how to feed people for practically nothing and that’s a good skill to have right now.
Thanks for all this info. Obviously I had a general sense that the situation was bad, but I really appreciate all the thoughtful detail here in the explanation!!
When I immigrated to the US in 2007 Trump was running for the Republican primary and I remember thinking then that he reminded me of Chavez personality wise (even if they have opposite backgrounds) and saying that he would be like Chavez if he was prez. When he ran again I noticed others were making that comparison before suddenly you saw a seemingly purposeful campaign to eliminate that from the discourse. Anyway, every day Trump is president I am proven right, the way the authoritarian creep happens though is basically the same in every country, they all follow the same reactionary textbook
Lindsey, we just got off the phone a few hours ago to chat about my finances for Home Economics where I told you I was going to stop adding to my HYSA and put more in the market...but maybe that's a bad idea! YIKES. Thanks for explaining this so clearly, though. I need to be paying better attention.
I haven't been paying as much attention to the news ( hello mental health and calming nervous system )but for the last several years/decade, I've wondered if all we've been taught about investing and managing money will suddenly shift.
Seems it
I also think about how real estate has always been an investment vehicle but with global warming/climate catastrophe it seems that sooner rather than later it may not be a wise move. And it doesn't seem that anyone is talking about this! Random things I think about...
Both good points!
It's also interesting to think that what we've been taught about managing money is all relatively new. Index funds only became a thing in the 70s.
Thank you so much for putting this in such relatable terms, helpful to me and likely a bajillion others. Really helpful for someone who avoids these topics because they confuse and worry me. Have a great weekend.
Thanks, Dewie! So glad to hear it was helpful! That's the goal!
Mutual Aid and community involvement are things to cultivate right away. I’ve also started paying for more things with cash, rather than a credit card because it really makes me aware of the cost of things at the moment of purchase.
Love supporting mutual aids! And paying cash! :)
Paying cash is super helpful. When you pay with card, sometimes its seems like monopoly until you get your statement.
Really thoughtful stuff here…I don’t think people understand the importance of Fed independence.
Me neither! And it stresses me out!
Ok! So, two contradicting thoughts:
a) the world is on fire, so instead of being responsible, I decided to surprise one of my oldest friends at her baby shower this weekend. We live in different states now and it's her first baby and money is being inflated to the moon and everything is crazy, so WHAT DOES IT EVEN MATTER?!
b) but then there's also this note: https://substack.com/@strangepilgrims/note/c-156239393
c) (not to be counted among the contradictory thoughts lol) also, separately, there's a little piece of unrelenting faith that there is always a remnant of hope somewhere
Grateful as always, Lindsey (and now Alicia, too!) x
Love ALL of this Q! And I think going to see your friend is an expense you will never regret!
yes those are the only expenses I’m interested in these days haha
And now Bannon is calling for Bessent to head both the Treasury and the Fed, the amount of overreach taking place in every aspect of government is so egregious.
I keep thinking about how 10% of consumers are doing nearly 50% of the spending. If a country relies on mostly consumption for growth and the bulk of that consumption comes from a sliver of the population, there is only so long that can continue.
Yes! I didn't mention that 10% stat, but I heard it, too, and it struck me as well!
Who is this 10% that spending the money?
The highest 10% of earners
Love the smart, deep detail on this post. The “additional resources” put it over the top. Thanks for sharing great insights, sorry this comes from your sleepless nights!
Thanks, Joy! I feel like with the Fed stuff, I’m watching a slow-motion train crash and I can’t look away.
An additional detail that worries me: Miran’s dissent in favor of a half point decrease rather than quarter point.
Also of interest: legislation presented by French Hill (R - House financial services committee chair) which would end the Fed’s “dual mandate” and narrow their focus to containing inflation
Yeah his dissent was 😬
I read (in the NYT I think) that a couple more small cuts are expected to follow, but more concerning is the possibility of the erosion of Fed independence. I think we can manage the former even with some fallout, but the latter, no. That’s a hard one to come back from.
This is the best article, thanks!!! This is on my mind too and it’s great to hear a summary from a financial expert. I am temp in Argentina for the rest of the year so have a close look at high inflation, high tariffs, and universal health care.
Oh I bet that's interesting!
I don’t have a lot of money but I am thankful to be nearly debt-free. Paid off my (very old and cheap not fixed up fixer-upper) house just this month. Hope our ancient car keeps rolling. I know how to feed people for practically nothing and that’s a good skill to have right now.
Thanks for all this info. Obviously I had a general sense that the situation was bad, but I really appreciate all the thoughtful detail here in the explanation!!
Thanks, Kelley!
Oh I'm OBSESSED with breakfast salads! I had the best one in my life at a little cafe in Moscow, Idaho – which sadly looks like is gone now.
This one has a savory granola on it that I'm obsessed with!
I would love to know which CSA Alicia is in!
Mine is through Hawthorne Valley Farm!
When I immigrated to the US in 2007 Trump was running for the Republican primary and I remember thinking then that he reminded me of Chavez personality wise (even if they have opposite backgrounds) and saying that he would be like Chavez if he was prez. When he ran again I noticed others were making that comparison before suddenly you saw a seemingly purposeful campaign to eliminate that from the discourse. Anyway, every day Trump is president I am proven right, the way the authoritarian creep happens though is basically the same in every country, they all follow the same reactionary textbook
Lindsey, we just got off the phone a few hours ago to chat about my finances for Home Economics where I told you I was going to stop adding to my HYSA and put more in the market...but maybe that's a bad idea! YIKES. Thanks for explaining this so clearly, though. I need to be paying better attention.
Thank you, Patty! I agree with you about the lack of reporting!
I guess we just need to hope that we have a similar experience to Han -- he didn't think they could get out of it, but they did.