Banks, QE, and Money-Printing

Re:Banks, QE, and Money-Printing by lotsofpulp on Tuesday November 03, 2020 @10:08AM (#24980272)

What none of the inflation statistics capture is volatility, or the feeling of volatility. Wages can go up 5% per year, but if you think you have a decent chance of losing your income and not being able to get it back in your working years, you will need to act more conservatively.

Americans especially should be worried about their income security at 45+ years of age, when health insurance premiums become $12k to $14k per year per person plus $15k oop max, in today’s money (who knows what it will be 20 years in the future).

If you lose your source of income that comes with employer subsidized health insurance in that 45 to 65 year range before you get to Medicare, and you have a medical problem, all of your assets might be in play since the sky is the limit when it comes to healthcare costs. Not to mention you will have lost ability to learn income if you are having to take care of yourself or your spouse.

[ Parent | on HN ]

Re:Banks, QE, and Money-Printing by JumpCrisscross on Tuesday November 03, 2020 @10:17AM (#24980365)

> What none of the inflation statistics capture is volatility

Because that’s a totally different thing? It’s not like nobody measures it.

We don’t criticise the kilogram for not telling us if it’s going to rain tomorrow.

[ Parent | on HN ]

Re:Banks, QE, and Money-Printing by lotsofpulp on Tuesday November 03, 2020 @10:34AM (#24980537)

I agree, I’m trying to explain why people don’t feel like inflation statistics are legitimate.

For example, I don’t care about housing in 90% of the country if I think only 10% is going to provide economic growth and opportunities sufficient to make me feel secure.

Or if you think you need more retirement savings than generations before because you think money will be worth less or returns will be lower, perhaps due to lower population growth, environmental concerns, etc.

[ Parent | on HN ]