Comments by "Ray Bod" (@raybod1775) on "MHFIN" channel.

  1. The Federal Reserve mostly 'buys' U.S. Treasury bonds, so the Federal government spends that money directly into the economy... about 6 trillion dollars in the last year or about 25% of GDP, that's a lot of new dollars. The Federal Reserve also has bought mortgage backed securities, state bonds and at a time last year corporate bonds to lower the yields. The banks also backstop their investment houses indirectly with unlimited Federal Reserve funding. That's why once upon a time, the U.S. had the Glass-Steagal Act to stop this, until Bill Clinton led its repeal.
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  2. I was just at Home Depot and saw $8 2x4 lumber that was $2.59 a year ago. Food prices are rising, gasoline is higher, packaging has less weight or items for more money. Taxes are higher. Meat prices are higher. Base model cars are not being sold, so average new car prices will be much higher, but that doesn't count for inflation. Any work done by trades costs more. Okay, televisions and electronics are less expensive, but that's it.
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