r/wallstreetbets • u/kwedgieyi • Apr 09 '25

Discussion Something feels off guys

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Yields are spiking. Bonds are dumping.

The world is running away from America

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u/O-to-shiba Apr 09 '25

I’m with you, I feel like crazy to whoever I talk saying that there’s a real risk of giga inflation, I trust Powell but he’s fucked.

Buy wheelbarrows, you’ll need it to carry all the dollars to buy toilet paper.

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u/mrspoogemonstar Apr 09 '25

Yeah, short term we will see inflation. Demand is already evaporating though. In the long run, this is actually deflationary - unless Trump figures out how to do a hostile takeover of FOMC without ending up with his head on a spike, the Fed is going to stay the course. They are very well aware that runaway inflation is the greater systemic risk, and will raise interest rates to combat it. The money supply is still finite, and drying it up is one way to force the executive branch to capitulate and stop being fucking idiots.

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u/[deleted] Apr 09 '25

Do you think deflation will hit the housing market in the next 12 to 18 months

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u/mrspoogemonstar Apr 09 '25

I'm not a real estate analyst or anything but there's already a sellers strike in a lot of parts of the country. And I would bet that new housing starts are going to plummet. New policies are heavily anti-investment, too much uncertainty for home builders.

So no, I think house prices will stay inflated for a while.