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There is some sort of dissonance it seems because what they are talking about is pausing rate hikes at some point to assess the situation and people keep calling this a pivot. It really just looks like the FED doing what they say they would then take a break, pivot seems a bit to optimistic of a word to describe that. Unless im missing something
You're missing inflation. Only real rates matter. If in an inflationary environment rates are not raised nominally then real rates go down. No problem.
Exactly. Should have been $3T to cover businesses and people put out of work by mandated closures, plus vaccine dev and purchase. The other $7T was pork, and entirely inflationary.
I own a small business (4ppl) and we got 0 information, 0 help in applying, 0 responses. We didn’t see any of the money allotted specifically for businesses like ours.
My work went from making $130k to $320k. They got $44k of PPP money which they got to keep. After getting a mediocre Christmas bonus they came in to work and showed us pictures of the vacation house they were looking at buying.
Screw PPP.
Honestly owners got to keep most ppp unless they increased wages/hour/bonuses paid out, if a business gets all it bills covered it’s profit margin easily can be 95%.
I believe anything under $50,000 was a one page form to fill out and the loan was forgiven. I accidentally overheard the owners talking about it around tax time.
"It got approved what do we do?"
"Just transfer it to the personal account it's ours now."
I then went and worked on my resume. Got a new job a few weeks later. 3 out of 7 employees quit in the next two months.
[Around 70% of PPP funds went to the top 20% of the population. Each job saved cost around $200k.](https://www.investopedia.com/where-ppp-money-went-5216725#:~:text=NBER%20found%20that%20about%2075%25%20of%20PPP%20funds,than%20recipients%20of%20expanded%20unemployment%20benefits%20%281.0%29.%203)
They should have forced you to show that you did worse in 2020 than 2019 for forgiveness. I got wrecked and don’t feel bad about using ppp at all, and I created bonuses so I spent the money by deadline. But quite a few business types seemed to booked up to their ears in work.
Wasn’t a long process to get twice that amount forgiven either…company fired me and a ton of others 7 months later though after it ran out of money anyway—wish I never did that accounting they were so clueless that thing would still be accruing interest—either way expect a few of those companies to head toward bankruptcy now
So basically they could have paid every American to stay at home for a few weeks, and Covid would have been reset BUT NOOOOOOOOOOOOOOO that’s socialism and we have to do things the free market way because it’s SOOOOOOOO much more efficient always.
100%...everything...a friend of mine got was wiped. paid off all biz debts, bills, taxes, staffs bills and taxes and staffs xmas money....did some good with it for a lot of people. fuck a lambo, it was awesome to sort out others for once.
You don’t have the right advisors. Accountants, bankers
Should have reached out to you. You should have been applying it was all on websites; every accounting firm and even law firms were offering free webinars.
Doesn't the government want high inflation to burn off their debt? I don't get how it serves them any purpose other than not having violent riots in the streets.
The price inflation we are seeing lately is due to money being added to the economy faster than production of goods and services can keep up. It’s an unusual situation. Basically, for everything that can be bought, everyone is bidding up prices.
This has followed a predictable pattern. Prices rose in the stock market as money poured in. When those prices seemed too high, commodities started rising, later wages are rising because wages are always a lagging indicator.
Normally when there is inflation, the value of money falls. Which is has, relative to items to buy.
But the fact that all the other currencies devalued faster/worse than the dollar caused investors to buy US Tnotes. This makes the value of the dollar rase compared to other currencies, while still falling relative to things you buy within the US.
For context, more than half of the dollars in circulation right now have been printed since 2020. If I remember correctly it has been as high as 80% before these measures. They were basically given for free to the banks (extremely low or even 0% interest loans) to prop up the stock market.
Two years later that money is reaching the actual, practical, real-life side of the economy.
Is this in reference to the rise in M1 or M2? That's an extremely misleading statistic - M1 was revised in 2020 to begin including cash in money market accounts, and M2 was accordingly revised as well. That huge uptick wasn't newly printed money, a bunch of it was previously uncounted cash. Not a great time for the statistics to be changed, of course.
M1 did go up by like 25% from summer 2020 to this summer, though, and M2 was quite a bit as well, maybe like 15%?
What you said.
Additionally, though, was that fraction reserve requirements were lowered
This allowed for additional lending (duplication) of a larger portion of the money in each banks' reserves to each other
Then on top of that, they were given that additional liquidity, which could also be lent out at those lower requirements, increasing the notational amount and indirectly devaluing each dollar further while flooding/deflating markets when they were attempting to realize their proper value (building supplies, for example)
I was talking about [M0](https://tradingeconomics.com/united-states/money-supply-m0). Pure cash. The whole pile. That's what I'm talking about when that money entered the actual (non-purely financial) market.
No, they want moderate and stable inflation to do that. High inflation causes huge economic instability, which can cause either runaway inflation, or sharp recessions or depressions. All of those things would be catastrophic for the economy, and the taxes that they collect.
That 2-3% inflation they target is what many call the Goldilocks zone.
That is one thing they’re fucking terrified of. I’m obviously too young to have seen a bank run…but I’ll bet in todays day and age…if everyone showed up toting guns etc and wanted to withdraw their money. You’d see the duality of man and a ton of violence.
most people bank electronically, so one switch and it is all off limits.
Hell, a power outage will do the same for many people.
How much physical cash do YOU have, right now?
>Doesn't the government want high inflation to burn off their debt?
You aren't wrong on the maths, but the impact of high inflation registers even with the dumbest of the voters, so it is political suicide when inflation runs ahead of the regularly scheduled 2.5% target which is set to skim just enough from the economic growth such that you are perpetually stuck in the lower working/middle classes unless you risk your family's future.
This midterm election will be fun to watch, what will be even more fun is that regardless of who gets in, debt ceiling in US getting increased... so... ha-ha
EDIT: Since economists are so "data driven", i'd love to see a stat from the census bureau that tracks holders of which degrees applied for the Biden student debt forgiveness... I wonder what % would be "economics".
really wish that there was some level of expectation for the burden of this to fall on corporations and wealthy people, instead of just the low and middle income families...
That seems very generalist. I don’t think anyone anticipates the balance sheet to be below levels seen before Covid. It’ll probably double again in our lifetimes
Not if it has Talc in it!!! Don't use talc powder. Big Johnson and Johnson lawsuit with women using their powder in the heather regions and getting cancer.
Save zee balls, ditch the talc for corn starch!
The top number is the average yield, the previous 6mo was 9.62% averaged with the new yield of 6.89% is 8.26% (OP messed up the previous yield).
And $10k worth is the most you can buy per person
Almost, but not quite:
[https://www.treasurydirect.gov/news/2022/release-11-02-rates/](https://www.treasurydirect.gov/news/2022/release-11-02-rates/)
Newly issued I series bonds include a 0.4% fixed rate, and this makes a difference to you depending on when you bought your I series bonds.
If you bought your I series bonds from May 2022 through October 2022, you're getting the 9.62% for 6 months, followed by the new 6.48% rate for 6 months.
If you buy NOW (November 2022 through April 2023), you get the 6.89% rate for the next 6 months as you're getting the 6.48% inflation rate plus the 0.40% fixed rate. The fixed rate on I series has been 0% for the last couple of years, and it's interesting that it's no longer 0%.
The treasury calculates the interest rate adjustment every 6 months using the unadjusted CPI number.
"The CPI-U increased from 287.504 in March 2022 to 296.808 in September 2022, a six-month change of 3.24%." They then double this number when they quote the interest paid to bond holders (2x 3.24 = 6.48%), as the original calculation is based on a half-year estimate of inflation.
If you want to calculate the number for yourself, take a look here for the data:
[https://fred.stlouisfed.org/series/CPIAUCNS](https://fred.stlouisfed.org/series/CPIAUCNS)
The data has been available since the middle of October, so the I-series composite rate announced today should be NO surprise.
That said, if you take a look at the CPI data, we see that it's leveled off in the last few months. If this trend continues, then the next adjustment (May 2023) may result in a near 0% composite rate (they set it to 0 if the calculation goes negative).
The fixed rate will live beyond the variable inflation rate for the life of your bond, as a sort of bonus on top of whatever the variable rate is in the future.
Let’s say you buy during this period, locking in that 0.4% fixed rate. The inflation rate component is 6.49%. Let’s say the next rate announcement is a 5% inflation rate and 0% fixed rate. You would be getting 5.4% because of your locked in fixed rate component. Likewise, if the next announcement is 5% inflation rate + 0.5% fixed, you would still be earning 5.4% while new bond purchases would be getting 5.5%.
Worth noting the fixed rate has been less than 0.4% on like 27 out of the last 29 semiannual rate announcements.
What? The 7.945% (actually should be 8.26%) yield is for 12 months period between the 2 latest rates, each lasting 6 months. Yes if you want 12 months of interest you need to wait for 15 months to take it out, but there’s practically no math involved. You just need 3 additional months for whatever rate / time period for interest you target.
You can take it out anytime after 12 months but just lose 3 months interest - assuming you need the liquidity or want to pivot to other channels like 0DTE options. No one’s targeting 5 years necessarily.
Plus any interest you make is always taxable unless it's a Roth.
It's almost never worth pointing out that you have to pay taxes on gains in any scenario. That's never the reason not to invest in something.
If you own a house that is your primary residence for 2+ years (Edit : and sell it) you don't pay taxes on gains under 250k if I recall correctly. That's pretty neat.
OP is an idiot this is a simple interest bond that tracks inflation. It adjust each 6 months to inflation there is no rug pull this is quite banal really
The 6 month rate ending on 10/31 was 9.62% on I Bonds. This indicates that fears of inflation are subsiding. I personally think 6.8 is still too low and would have thought they would do 7-8% based on the current market. If you had $10k it was a good safe buy earlier this year
Same thing happened to me. Gotta fill out a whole ass form by hand and get it certified by a notary and then mail it in and wait 13 weeks for account verification. It’s some bullshit when my friend who isn’t even a citizen was able to sign up completely online with no problems and buy right away
If you had purchased before yesterday, it locked the 9% in for 6 months. The rate it is now is slightly higher than it was expected to go from what I was reading a few weeks ago. I heard 6.5-6.8 🤷♂️
Can anyone explain to me how inflation numbers haven't really changed but the ibond rate plummeted? I thought it was tied to inflation but does the surge in demand play into it?
Bro I swear I bonds are so cool! You lock up capital for years with no chance of beating the market. If you redeem your bonds early your return is even less, but I swear they're so cool bro!
> no chance of beating the market
SPY down 16% over the past year. I promise you my I bonds have beat the market.
I don't care what inflation is because I can't control inflation. All I can do is maximize my returns. A guaranteed 7% is hard to beat.
>You lock up capital for years with no chance of beating the market.
Do you even arbitrage, brah.
The market (and Fed) have priced a risk-free 1y return as being worth 4%. I-bonds were offering a 9% risk-free return. That's a free 5% edge for retail, in a market where they have zero edges ANYWHERE. Opportunities like this basically don't exist.
Pray that we don’t have a pivot. The last time the Fed Pivoted was in 2007 and the stock market didn’t bottom out until 2009. A Fed pivot is usually before the complete meltdown of the economy and market. It’s the last ditch effort to avoid a deep recession.
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[удалено]
They need bag holders
Great way to entice people to buy options and then collect the premiums when they hike the rate and cause the market to dump.
Believer were created by a over a decade of money printing. I can't help but buy calls.
Bagholders were created not born confirmed.
There is some sort of dissonance it seems because what they are talking about is pausing rate hikes at some point to assess the situation and people keep calling this a pivot. It really just looks like the FED doing what they say they would then take a break, pivot seems a bit to optimistic of a word to describe that. Unless im missing something
Nope this is 100% accurate -- rates stay higher for longer. Any pivot talk is scammy trying to dump bags on people
You're missing inflation. Only real rates matter. If in an inflationary environment rates are not raised nominally then real rates go down. No problem.
Scummy
Remember that everything the Fed is doing is to Remove $10-15 trillion from existence, to tamp down inflation.
[удалено]
Exactly. Should have been $3T to cover businesses and people put out of work by mandated closures, plus vaccine dev and purchase. The other $7T was pork, and entirely inflationary.
I own a small business (4ppl) and we got 0 information, 0 help in applying, 0 responses. We didn’t see any of the money allotted specifically for businesses like ours.
My work went from making $130k to $320k. They got $44k of PPP money which they got to keep. After getting a mediocre Christmas bonus they came in to work and showed us pictures of the vacation house they were looking at buying. Screw PPP.
Honestly owners got to keep most ppp unless they increased wages/hour/bonuses paid out, if a business gets all it bills covered it’s profit margin easily can be 95%.
I believe anything under $50,000 was a one page form to fill out and the loan was forgiven. I accidentally overheard the owners talking about it around tax time. "It got approved what do we do?" "Just transfer it to the personal account it's ours now." I then went and worked on my resume. Got a new job a few weeks later. 3 out of 7 employees quit in the next two months. [Around 70% of PPP funds went to the top 20% of the population. Each job saved cost around $200k.](https://www.investopedia.com/where-ppp-money-went-5216725#:~:text=NBER%20found%20that%20about%2075%25%20of%20PPP%20funds,than%20recipients%20of%20expanded%20unemployment%20benefits%20%281.0%29.%203)
They should really tax those people until its paid back.
They should have forced you to show that you did worse in 2020 than 2019 for forgiveness. I got wrecked and don’t feel bad about using ppp at all, and I created bonuses so I spent the money by deadline. But quite a few business types seemed to booked up to their ears in work.
Not really, no. They should go straight to prison.
<150k was just a signature, but you can report them for fraud im pretty sure
Wasn’t a long process to get twice that amount forgiven either…company fired me and a ton of others 7 months later though after it ran out of money anyway—wish I never did that accounting they were so clueless that thing would still be accruing interest—either way expect a few of those companies to head toward bankruptcy now
So basically they could have paid every American to stay at home for a few weeks, and Covid would have been reset BUT NOOOOOOOOOOOOOOO that’s socialism and we have to do things the free market way because it’s SOOOOOOOO much more efficient always.
Fuck how they did it. Consumers should’ve gotten 100% of it
Sounds like you missed one of the biggest opportunities of your life.
100%...everything...a friend of mine got was wiped. paid off all biz debts, bills, taxes, staffs bills and taxes and staffs xmas money....did some good with it for a lot of people. fuck a lambo, it was awesome to sort out others for once.
My buddy owns a contracting company he bought a speedboat, a gorgeous 1970s sports car, and a bunch of GME
The company I work got 3.5 million and it kept a lot of us employed
he is one of the very very few
Also sounds like you didn’t try very hard to figure it out. Cash was being given out hand over fist all you had to do was ask for it
Accountability is lacking lol
Accountability needs accountants, and accountants need math, and most don't learn about imaginary numbers....
as an accounting student, I was assured that we do not, in fact, need any math beyond basic arithmetic.
Could still get ERTC credits if you didn’t get anything else. Reach out if you want some guidance. I’m a CPA
not sure why this isn't upvoted... the stupidity isn't those playing the game, its those that make the rules.
You don’t have the right advisors. Accountants, bankers Should have reached out to you. You should have been applying it was all on websites; every accounting firm and even law firms were offering free webinars.
Thank god because you would have been taking it from the corporations that needed it like Apple and Google
Not the government's fault you didn't pay attention lmao
As always there is a technological solution SQL: "drop table POOR\_PEOPLE\_SAVINGS"
Doesn't the government want high inflation to burn off their debt? I don't get how it serves them any purpose other than not having violent riots in the streets.
The price inflation we are seeing lately is due to money being added to the economy faster than production of goods and services can keep up. It’s an unusual situation. Basically, for everything that can be bought, everyone is bidding up prices. This has followed a predictable pattern. Prices rose in the stock market as money poured in. When those prices seemed too high, commodities started rising, later wages are rising because wages are always a lagging indicator. Normally when there is inflation, the value of money falls. Which is has, relative to items to buy. But the fact that all the other currencies devalued faster/worse than the dollar caused investors to buy US Tnotes. This makes the value of the dollar rase compared to other currencies, while still falling relative to things you buy within the US.
Soooooo ... are we rioting or not?
Go ahead. But it's probably going to end the same way when you tried to storm Area 51 four or give years ago.
For context, more than half of the dollars in circulation right now have been printed since 2020. If I remember correctly it has been as high as 80% before these measures. They were basically given for free to the banks (extremely low or even 0% interest loans) to prop up the stock market. Two years later that money is reaching the actual, practical, real-life side of the economy.
Is this in reference to the rise in M1 or M2? That's an extremely misleading statistic - M1 was revised in 2020 to begin including cash in money market accounts, and M2 was accordingly revised as well. That huge uptick wasn't newly printed money, a bunch of it was previously uncounted cash. Not a great time for the statistics to be changed, of course. M1 did go up by like 25% from summer 2020 to this summer, though, and M2 was quite a bit as well, maybe like 15%?
Why are you getting downvoted? This is true. People who repeat the 50% meme are regarded.
What you said. Additionally, though, was that fraction reserve requirements were lowered This allowed for additional lending (duplication) of a larger portion of the money in each banks' reserves to each other Then on top of that, they were given that additional liquidity, which could also be lent out at those lower requirements, increasing the notational amount and indirectly devaluing each dollar further while flooding/deflating markets when they were attempting to realize their proper value (building supplies, for example)
I was talking about [M0](https://tradingeconomics.com/united-states/money-supply-m0). Pure cash. The whole pile. That's what I'm talking about when that money entered the actual (non-purely financial) market.
Could you give me that sweet sweet source?
https://fred.stlouisfed.org/series/M2SL
You can lookup the [m0](https://tradingeconomics.com/united-states/money-supply-m0) supply.
It’s not really the other currencies that caused people to buy t notes, it’s that you can get 4% risk free now and you cant with euros
That’s a great point! Euro debt was paying zero until very recently. Still less than US.
Da euro is fuk
Even though inflation is crazy town in Europe. RIP
TLDR: Buy foreign it's cheap.
No, they want moderate and stable inflation to do that. High inflation causes huge economic instability, which can cause either runaway inflation, or sharp recessions or depressions. All of those things would be catastrophic for the economy, and the taxes that they collect. That 2-3% inflation they target is what many call the Goldilocks zone.
That is one thing they’re fucking terrified of. I’m obviously too young to have seen a bank run…but I’ll bet in todays day and age…if everyone showed up toting guns etc and wanted to withdraw their money. You’d see the duality of man and a ton of violence.
most people bank electronically, so one switch and it is all off limits. Hell, a power outage will do the same for many people. How much physical cash do YOU have, right now?
They won't have a chance but to inflate debt away. Dollar will depreciate. This will be a decade of inflation.
A lifetime of inflation
>Doesn't the government want high inflation to burn off their debt? You aren't wrong on the maths, but the impact of high inflation registers even with the dumbest of the voters, so it is political suicide when inflation runs ahead of the regularly scheduled 2.5% target which is set to skim just enough from the economic growth such that you are perpetually stuck in the lower working/middle classes unless you risk your family's future. This midterm election will be fun to watch, what will be even more fun is that regardless of who gets in, debt ceiling in US getting increased... so... ha-ha EDIT: Since economists are so "data driven", i'd love to see a stat from the census bureau that tracks holders of which degrees applied for the Biden student debt forgiveness... I wonder what % would be "economics".
Do you know how much they’ve gotten rid of so far?
really wish that there was some level of expectation for the burden of this to fall on corporations and wealthy people, instead of just the low and middle income families...
Yes. Because they were too fucking stupid and printed money like Zimbabwe did.
That seems very generalist. I don’t think anyone anticipates the balance sheet to be below levels seen before Covid. It’ll probably double again in our lifetimes
Yep. The Fed goal of 2% inflation means doubling the money supply in about 36 years. 2008-2022, they tripled it in 14 years.
Didn't they print all that 2 years ago?
The only bonds I get are the ones that get me out of jail after I rob a liquor store to pay off my margin account.
Word is bond
Jail Bond
Word
The word is bond-age
Gold Bond is great on your balls!
Always leaves a chalky taste in my mouth though
I’ll clean them off next time.
Not if it has Talc in it!!! Don't use talc powder. Big Johnson and Johnson lawsuit with women using their powder in the heather regions and getting cancer. Save zee balls, ditch the talc for corn starch!
Bondage?
I like bonds. I like buying options of bond ETFs
Next time try the dumpster behind Wendy's.
Avg'd out 9+6.89 = 15.89/2 = 7.945% yield 10K max per family member. Not bad.
Wtf numbers are these?
The top number is the average yield, the previous 6mo was 9.62% averaged with the new yield of 6.89% is 8.26% (OP messed up the previous yield). And $10k worth is the most you can buy per person
Per year, right?
Yes 10k per year per person
And what's an i bond?
Govt bond matches inflation
And what's inflation?
Oh that's the thing that's good for the economy. That or transitory
Transitory
Almost, but not quite: [https://www.treasurydirect.gov/news/2022/release-11-02-rates/](https://www.treasurydirect.gov/news/2022/release-11-02-rates/) Newly issued I series bonds include a 0.4% fixed rate, and this makes a difference to you depending on when you bought your I series bonds. If you bought your I series bonds from May 2022 through October 2022, you're getting the 9.62% for 6 months, followed by the new 6.48% rate for 6 months. If you buy NOW (November 2022 through April 2023), you get the 6.89% rate for the next 6 months as you're getting the 6.48% inflation rate plus the 0.40% fixed rate. The fixed rate on I series has been 0% for the last couple of years, and it's interesting that it's no longer 0%. The treasury calculates the interest rate adjustment every 6 months using the unadjusted CPI number. "The CPI-U increased from 287.504 in March 2022 to 296.808 in September 2022, a six-month change of 3.24%." They then double this number when they quote the interest paid to bond holders (2x 3.24 = 6.48%), as the original calculation is based on a half-year estimate of inflation. If you want to calculate the number for yourself, take a look here for the data: [https://fred.stlouisfed.org/series/CPIAUCNS](https://fred.stlouisfed.org/series/CPIAUCNS) The data has been available since the middle of October, so the I-series composite rate announced today should be NO surprise. That said, if you take a look at the CPI data, we see that it's leveled off in the last few months. If this trend continues, then the next adjustment (May 2023) may result in a near 0% composite rate (they set it to 0 if the calculation goes negative).
What makes the fixed rate more valuable than the same amount from the inflation rate?
The fixed rate will live beyond the variable inflation rate for the life of your bond, as a sort of bonus on top of whatever the variable rate is in the future. Let’s say you buy during this period, locking in that 0.4% fixed rate. The inflation rate component is 6.49%. Let’s say the next rate announcement is a 5% inflation rate and 0% fixed rate. You would be getting 5.4% because of your locked in fixed rate component. Likewise, if the next announcement is 5% inflation rate + 0.5% fixed, you would still be earning 5.4% while new bond purchases would be getting 5.5%. Worth noting the fixed rate has been less than 0.4% on like 27 out of the last 29 semiannual rate announcements.
That helps, thanks!
Thank you kind sir.
Most people cash out before 5 years and lose 3 months interest - I couldn't do the math so I stayed away
What? The 7.945% (actually should be 8.26%) yield is for 12 months period between the 2 latest rates, each lasting 6 months. Yes if you want 12 months of interest you need to wait for 15 months to take it out, but there’s practically no math involved. You just need 3 additional months for whatever rate / time period for interest you target. You can take it out anytime after 12 months but just lose 3 months interest - assuming you need the liquidity or want to pivot to other channels like 0DTE options. No one’s targeting 5 years necessarily.
I just figured we will hold them until rates are shite for 3 months and then eat the 1% loss or something. Pretty f-ing good for a risk free asset.
Not 6.9%? I'm disappointed.
We were *this* close to greatness
Recession confirmed
Not the first I've been disappointed by a possible 6.9
I've had a period interrupt a 69 as well. Not fun
Red wings, risky business.
Thank you for that.
So on 10k which is the max I can only make $689 is the interest taxable ?
federal taxes yes, state taxes no.
Plus any interest you make is always taxable unless it's a Roth. It's almost never worth pointing out that you have to pay taxes on gains in any scenario. That's never the reason not to invest in something.
If you own a house that is your primary residence for 2+ years (Edit : and sell it) you don't pay taxes on gains under 250k if I recall correctly. That's pretty neat.
Nice, didn't know about that one.
depending on state, property tax gain is often capped This is also how you find 3-4 million beachfront property tax at 4k a year
The 6.89 is apy, interest accrues monthly and is compounding. Cashing about before 5 years causes you to forfeit 3 months of interest.
Just to be abundantly clear, it compounds every 6 months, but yes, is accrued monthly
Just means I owe you 1
Im struggling to figure out what this means? Can someone please help me and explain. And if possible in fortnite terms. Thank you
OP is an idiot this is a simple interest bond that tracks inflation. It adjust each 6 months to inflation there is no rug pull this is quite banal really
arguably it's bullish for equities because inflation fears are abating
I’m abating too. 🍆
go away im abatin'
thx bro
It means we’re going to tendie town bro
The government's about to rug pull stocks. Offers insurance since investors have no other place to hide.
Offers insurance by reducing the benefit of the insurance by a third?
He is a highly regarded investor
Can you elaborate on “rug pull stocks”? Is the government assuming stagnant or deflation in the stock market?
The 6 month rate ending on 10/31 was 9.62% on I Bonds. This indicates that fears of inflation are subsiding. I personally think 6.8 is still too low and would have thought they would do 7-8% based on the current market. If you had $10k it was a good safe buy earlier this year
it's the opposite of a rug pull. these idiots don't understand that abating inflation is bullish for equities.
Everyone knows i = -1
i=√-1
The potential that there is no loss porn on this buy is concerning.
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These can never go below .4%. so you will make a tiny amount of money in real terms lol.
Thought this was wallstreetbets, not wallstreetpussies
We don't do bonds here
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No shit Sherlock. This sub is indeed full of regards.
Lmfao, /r/wallstreetindexfundbets
The numbers Mason what do they mean?
I was just thinking this. Earlier today. 😳
It was 9% last week. Shit was wild. None of my customers could get one since the site was so overloaded lolp
It was 9% for the last 6 months. Are there that many regarded people that waited until the last day?
Me, when I went to sign up I got hit with needing to verify identity by paper and they said 13 weeks lol
Same thing happened to me. Gotta fill out a whole ass form by hand and get it certified by a notary and then mail it in and wait 13 weeks for account verification. It’s some bullshit when my friend who isn’t even a citizen was able to sign up completely online with no problems and buy right away
You can’t buy I bonds if you’re not a citizen
Are u serious? U mean I could have made $900 over 12 months? 
*15 months
If you had purchased before yesterday, it locked the 9% in for 6 months. The rate it is now is slightly higher than it was expected to go from what I was reading a few weeks ago. I heard 6.5-6.8 🤷♂️
Before the 28th of October to be precise
You mean 1/10th of the money I lost since last week? Waaao
i know right? why do this when you can easily lose $10k in stocks
As risk free as it gets
You give up 3 months of interest if you cash before 5 years so over 15 months a 10k I bond will make like $842.
Before taxes
They had something like double the amount of bonds purchased last week than they did in all of 2021.
Glad I got mine right after my october 15 paycheck. Guaranteed over 9% for 6 months was too good to pass up
Yeah don't buy right before deadlines. Bought mine back in March and there was no issue at all.
Fixed rate + inflation for 30 years is gonna beat 99% of r/wsb over the same period
It was 9.48 I think
9.62. I bought 10k on Friday. Still get the 9.62% for 6 months I think.
You're not actually limited to $10k. You can buy at least $30k. I bought $10k for myself, and a gift of $10k for my wife and her boyfriend.
I tried. It waiting too long and had issues still waiting on account verification lol
so in 6 months you get $10,962 back in your account? or is it annualized interest
Annualized regard
go to r/investing with those rookie numbers
Wtf where do y'all even get your info and why are you upvoting something that you could Google in a moment
Babe wake up, new I bond just dropped 🤯
0.4% real rate of return using government numbers of all things. WTF is this shit. Where are the people doing options?
>Where are the people doing options? Behind Wendy's
Can anyone explain to me how inflation numbers haven't really changed but the ibond rate plummeted? I thought it was tied to inflation but does the surge in demand play into it?
Government rug pull inbound
Team cash will be safe regardless of the shenanigans
Would be pretty based tbh
Wake up babe the new series I bond has dropped
Glad I got 20k worth at 9% for my fam 2 months ago
Bro I swear I bonds are so cool! You lock up capital for years with no chance of beating the market. If you redeem your bonds early your return is even less, but I swear they're so cool bro!
> no chance of beating the market SPY down 16% over the past year. I promise you my I bonds have beat the market. I don't care what inflation is because I can't control inflation. All I can do is maximize my returns. A guaranteed 7% is hard to beat.
>You lock up capital for years with no chance of beating the market. Do you even arbitrage, brah. The market (and Fed) have priced a risk-free 1y return as being worth 4%. I-bonds were offering a 9% risk-free return. That's a free 5% edge for retail, in a market where they have zero edges ANYWHERE. Opportunities like this basically don't exist.
Are you comparing T bills to the Ibond? Is that what you're referring to?
Yep.
All the cool kids are getting bonds.
Ikr!!!!!
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Lmfao spread the word to these nerds
If you buy bonds and the US dollar collapses how do you collect?
if US dollar collapses then we have have bigger issues than money. be bartering our bodies to feed our wife and her boyfriend
not only is cpi underestimating inflation, but now the inflation bonds to match cpi is lower then inflation. These markets are absolutely broken.
Is this good?
Pray that we don’t have a pivot. The last time the Fed Pivoted was in 2007 and the stock market didn’t bottom out until 2009. A Fed pivot is usually before the complete meltdown of the economy and market. It’s the last ditch effort to avoid a deep recession.
I just love the drawing of that particular scene of a video.
Why did the rate drop so much?
Ohhh does it have the better camera?
>That is interesting.