2022-10-08

Random Thoughts

It is said that rate hikes do not help high oil prices. Do rate cuts?

You can't print oil. Aye, and what does currency printing do in this context?

Home prices climbed 42 percent since the pandemic according to Case-Schiller. Home affordability is at all-time lows. Assuming lockdowns damaged the econmoy, why should's prices fall 30 percent back to the pre-covid level?

For 12 years, the Federal Reserve suppressed interest rates and thereby indirectly funneled hundreds of trillions in capital into unsustainable projects and investments. Higher interest rates are the solution, no?

Why shouldn't the strongest companies and countries set their interest rates higher so as to attract scarce capital?

Short-term: if the U.S. dollar is peaking, where do commodity prices go? Inflation? Interest rates? Long-term: same questions, but also what if the dollar hasn't peaked for good yet?

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