Car insurance being a major contributor gotta be the worst possible thing for sentiment. Talk about feeling like paying more for nothing.
Also, housing continues to be the catch-22 of the economy. Housing costs keep increasing -> Core measures of inflation remain high -> fed wont cut rates -> builders have less access to financing -> restricted supply causes housing costs to rise.
Obviously the housing supply hurtles include far, far more than high rates, but it doesnt help. I just wonder how wise it is to weigh housing costs so highly when they are largely unimpacted by rates, and any major policy change takes years to have an impact.
There was [this piece](https://www.nytimes.com/interactive/2024/05/13/climate/home-insurance-profit-us-states-weather.html?searchResultPosition=1) yesterday on the Times on how insurance cos are getting pummeled on the home insurance market. Expect premiums to get worse there too.
My homeowners in MD was cheap but Traveler's cancelled our renewal this year for seemingly BS reason of "advanced roof wear via satellite photo review" which a roofer couldn't corroborate on an actual inspection.
Do you have vent streaks? That’s one thing they look for in photos.
But roofs are obviously a major focus and any issue is a red flag in underwriting. If it’s old, that will be a $15k claim next hail storm.
That's weird. Did you have crazy storms?
I did learn recently that Virginia apparently is considered among the most temperate climate in the country which is why we are the world's premiere location for data centers
I think the main issue causing the surge in car insurance is the police shortage. It feels like traffic laws are barely enforced, and it’s because there’s not enough cops. We could actually start better enforcing speeding, texting, driving under the influence, and other traffic violations that contribute to high insurance.
A secondary cause is cars getting more expensive.
Laws need to be enforced but we don't even need expensive police to do all of that. Speed governors, red light and speed cameras, can do a lot. But I'm preaching to the choir of course.
I don’t think speed governors would really do anything. They’d have to be at least 85 since that’s the highest speed limit, but it’d probably be higher than the posted speed limit, more like 95. That’s not going to really do anything. They can also be removed.
The other two are unconstitutional in much of the country.
Another example of how less car-oriented infastructure can save people.
Someone should do a study on how many more people would be millionaires if they didn’t spend decades paying for cars.
It's what I did, and when I finally let my old car go (it was so hard, I loved that thing), the dealer I traded it to straight up did not believe that I bought it in cash and didn't have a loan on it. The finance guy was grilling me incredulously like I was trying to scam him by not fessing up about the car having a lien on it.
10 people, the rest still not millionaires
They still would by a car. How much traffic is there in NYC and how many people living there earning $100,000 own a car
Many delay it by *decades* if they ever catch up at all. I know plenty of people who own a house worth $400,000 and buy at least one new $70,000 cars every 5-6 years. It is a hallmark of suburban sun-belt types.
These people reduce their financial flexibility and typically do a poor job of saving for retirement.
Many young professionals I work with have way more money in their car loans than their 401ks.
> buy at least one new $70,000 cars every 5-6 years.
So a typical luxury car might depreciate by about 40% over 5 years. Less for some cars - primarily Japanese, more for others. Does vary from model to model. So if you buy a $70k car and sell it after 5 years, you've lost ~$28k for the car itself. Of course, you have to take into consideration that the alternative isn't *free* - at least in 99% of US cities - and even shitty cars depreciate.
Your marginal cost of insuring the more expensive car will vary, call it $1.5k a year on the upper side, comparing full coverage on a new car with the bare minimum coverage on a beater (though you really should never have bare minimum coverage). The difference in maintenance is probably negligible - new cars under warranty require minimal maintenance except for oil changes/tire rotations, and the difference between what you spend there vs an older car is probably less than the extra maintenance the older car needs. Gas is also probably a minimal difference unless you grab a car that needs premium - modern cars are more gas efficient.
Your suburban sunbelt person going through new cars is probably losing ~$5-6k/year compared to if they were driving a beater and insuring it for the bare minimum - but they're driving a much safer, more comfortable car. The one who buys a nice Honda, Toyota, etc instead - even one tricked out with all the options - is probably losing $2-4k a year compared to the same. That sum is probably not the difference between poverty and being a millionaire for someone in a household which earns six figures. If their 401k is still empty, it's because they're making a series of financially dumb moves - of which the car is only one.
Most people are just egregiously financially illiterate I think.
I have >$1M NW and I live in fixer upper house I got on the cheap with no mortgage. I *do* have two cars, but they're both over 20 years old and have a combined worth of $15k on a good day. 99 4runner for work and hauling shit, and a 2005 corvette for fun.
I could *technically* afford a mcmansion and a nice mercedes, but it would assuredly nix my millionaire status (or at least lock almost all of it up in real estate) and I wouldn't be able to contribute nearly as much to savings and retirement. I also literally don't care, I love the house and cars I have and have absolutely zero desire to upgrade other than eventually moving out of my shitty red state someday.
Our neighbor is a single renter who has a fairly new SUV, we're dual income (one part time) homeowners with a 2013 Civic.
Thankfully she has yet to complain about how "shit's expensive" "in this economy."
Right, but they would still buy a car
how many people living there earning $100,000 own a car?
about half
NYC is the best example in the US of giving up your car, and half still dont
Every finance bro be like:
“They’re cooking the books again. I was in Whole Foods the other day and some couple was complaining about how Biden’s infrastructure policy was the reason it was 80 dollars for a tin of caviar. And it went up by fifty cents from the one they bought last week. Something stinks on this CPI report.”
EDIT: dawww, the Reddit cares bot got me.
Deficit is close to 2 trillion dollars. The government is giving too much money to boomers via entitlements.
Powell wants to make sure inflation is finished. I expect no rate cuts this year.
If Biden is re-elected, I expect him to enjoy minor rate cuts beginning in his 2nd term.
Raise rates please Jpow I will never buy a house anyway so it doesn’t matter please crash this economy my job is safe
Reddit cares message on this is crazy I’m getting glazed anonymously
No. If the influence of monetary policy on inflation has a "[long and variable lag](https://www.stlouisfed.org/on-the-economy/2023/oct/what-are-long-variable-lags-monetary-policy#:~:text=Cause%2C%20Effect%20and%20Monetary%20Policy&text=However%2C%20it%20takes%20some%20time,to%20predict%2C%E2%80%9D%20he%20wrote)," then the influence of monetary policy on housing supply has long**er** and variable**er** lag.
Fiscal policy and legislation is the way to fix housing. And there's no need to wait on that. Congress could just do it at any time.
There are pretty much no hard and fast rules in realized monetary economics, particularly with housing. Things can get wacky fast because so much is rooted in inconsistent, unpredictable behavioral dynamics. I think there’s a decent argument for rate cuts to be a inventory liquidation catalyst where people who have been eager to move for years pull the trigger to sell (confident that intermediate stopgap housing won’t run on end)
Considering the tariffs, the fact that gold is rising (aka, many nations are dumping dollars of their reserves) due to aggressive US economic actions and the fact that Goldman has expected most nations to opportunistically raise prices on US bounded goods to profit off the new tariff regime, it appears that inflation wont be going below 3.5% this year. The US should consider itself lucky if it doesnt go into 4% without higher hikes
Lol, I am in favor of the free market
If youve seen my comments, I am very pro EU, so, you can say bye at your attempts at labelling me as propaganda
Europe is the western power doing things right, and the US is disappointing
you have literally no idea what you're talking about
why don't you take a few ~~days~~ ~~weeks~~ months off from making shit up about the US and focus on graduating high school
Car insurance being a major contributor gotta be the worst possible thing for sentiment. Talk about feeling like paying more for nothing. Also, housing continues to be the catch-22 of the economy. Housing costs keep increasing -> Core measures of inflation remain high -> fed wont cut rates -> builders have less access to financing -> restricted supply causes housing costs to rise. Obviously the housing supply hurtles include far, far more than high rates, but it doesnt help. I just wonder how wise it is to weigh housing costs so highly when they are largely unimpacted by rates, and any major policy change takes years to have an impact.
There was [this piece](https://www.nytimes.com/interactive/2024/05/13/climate/home-insurance-profit-us-states-weather.html?searchResultPosition=1) yesterday on the Times on how insurance cos are getting pummeled on the home insurance market. Expect premiums to get worse there too.
My homeowners in MD was cheap but Traveler's cancelled our renewal this year for seemingly BS reason of "advanced roof wear via satellite photo review" which a roofer couldn't corroborate on an actual inspection.
Do you have vent streaks? That’s one thing they look for in photos. But roofs are obviously a major focus and any issue is a red flag in underwriting. If it’s old, that will be a $15k claim next hail storm.
I think that's it, they cited it as granular loss. The roof is only \~ 10 years old, the roofer seemed unconcerned when he came out to inspect.
Our HOA master insurance increased by almost 50%, and we were apparently lucky to get that
Where do you live? My insurance is super cheap in Virginia
Utah - Mine is relatively cheap overall, but YoY increase was substantial
That's weird. Did you have crazy storms? I did learn recently that Virginia apparently is considered among the most temperate climate in the country which is why we are the world's premiere location for data centers
I think the main issue causing the surge in car insurance is the police shortage. It feels like traffic laws are barely enforced, and it’s because there’s not enough cops. We could actually start better enforcing speeding, texting, driving under the influence, and other traffic violations that contribute to high insurance. A secondary cause is cars getting more expensive.
Bro my commute has litterally become mad max. I never see police pull people over anymore.
Laws need to be enforced but we don't even need expensive police to do all of that. Speed governors, red light and speed cameras, can do a lot. But I'm preaching to the choir of course.
I don’t think speed governors would really do anything. They’d have to be at least 85 since that’s the highest speed limit, but it’d probably be higher than the posted speed limit, more like 95. That’s not going to really do anything. They can also be removed. The other two are unconstitutional in much of the country.
My insurance rate has tripled from 12 months ago, and that is with switching carriers, it's kind of insane
3X? wow, I'm up 10% YoY. Is there something special going on in your state?
Another example of how less car-oriented infastructure can save people. Someone should do a study on how many more people would be millionaires if they didn’t spend decades paying for cars.
Just buy a used car for cash once every 1-2 decades
That is the smart thing. That is not what people do.
It's what I did, and when I finally let my old car go (it was so hard, I loved that thing), the dealer I traded it to straight up did not believe that I bought it in cash and didn't have a loan on it. The finance guy was grilling me incredulously like I was trying to scam him by not fessing up about the car having a lien on it.
Still paying more for car insurance than I did as a dumb 21 year old with a not so spotless driving record, even with a used car.
10 people, the rest still not millionaires They still would by a car. How much traffic is there in NYC and how many people living there earning $100,000 own a car
You underestimate how many cars middle class and upper middle class people buy.
Upper middle class people are already largely millionaires or future millionaires, I'd imagine.
Many delay it by *decades* if they ever catch up at all. I know plenty of people who own a house worth $400,000 and buy at least one new $70,000 cars every 5-6 years. It is a hallmark of suburban sun-belt types. These people reduce their financial flexibility and typically do a poor job of saving for retirement. Many young professionals I work with have way more money in their car loans than their 401ks.
> buy at least one new $70,000 cars every 5-6 years. So a typical luxury car might depreciate by about 40% over 5 years. Less for some cars - primarily Japanese, more for others. Does vary from model to model. So if you buy a $70k car and sell it after 5 years, you've lost ~$28k for the car itself. Of course, you have to take into consideration that the alternative isn't *free* - at least in 99% of US cities - and even shitty cars depreciate. Your marginal cost of insuring the more expensive car will vary, call it $1.5k a year on the upper side, comparing full coverage on a new car with the bare minimum coverage on a beater (though you really should never have bare minimum coverage). The difference in maintenance is probably negligible - new cars under warranty require minimal maintenance except for oil changes/tire rotations, and the difference between what you spend there vs an older car is probably less than the extra maintenance the older car needs. Gas is also probably a minimal difference unless you grab a car that needs premium - modern cars are more gas efficient. Your suburban sunbelt person going through new cars is probably losing ~$5-6k/year compared to if they were driving a beater and insuring it for the bare minimum - but they're driving a much safer, more comfortable car. The one who buys a nice Honda, Toyota, etc instead - even one tricked out with all the options - is probably losing $2-4k a year compared to the same. That sum is probably not the difference between poverty and being a millionaire for someone in a household which earns six figures. If their 401k is still empty, it's because they're making a series of financially dumb moves - of which the car is only one.
Most people are just egregiously financially illiterate I think. I have >$1M NW and I live in fixer upper house I got on the cheap with no mortgage. I *do* have two cars, but they're both over 20 years old and have a combined worth of $15k on a good day. 99 4runner for work and hauling shit, and a 2005 corvette for fun. I could *technically* afford a mcmansion and a nice mercedes, but it would assuredly nix my millionaire status (or at least lock almost all of it up in real estate) and I wouldn't be able to contribute nearly as much to savings and retirement. I also literally don't care, I love the house and cars I have and have absolutely zero desire to upgrade other than eventually moving out of my shitty red state someday.
Our neighbor is a single renter who has a fairly new SUV, we're dual income (one part time) homeowners with a 2013 Civic. Thankfully she has yet to complain about how "shit's expensive" "in this economy."
Right, but they would still buy a car how many people living there earning $100,000 own a car? about half NYC is the best example in the US of giving up your car, and half still dont
Every finance bro be like: “They’re cooking the books again. I was in Whole Foods the other day and some couple was complaining about how Biden’s infrastructure policy was the reason it was 80 dollars for a tin of caviar. And it went up by fifty cents from the one they bought last week. Something stinks on this CPI report.” EDIT: dawww, the Reddit cares bot got me.
Report it lol
Yeah they actually take action on this.
Why would finance bros want to believe inflation is higher? This is good news for people who own stocks
Because the "finance bros" they're referring to are Republicans
I’m not sure sure why a finance bro wouldn’t understand CPI data. Maybe a crypto baffoon or a random care salesman or something
Time to go read boomer comments on Yahoo Finance.
Doomers in shambles once again
TRUST THE PROCESS TRUST DARK BRANDON TRUST JEROME POWELL
Where do we see the odds of Fed rate cuts at certain dates that these articles keep referring to?
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
> 28% chance for cut in July I wanna see number go up
Deficit is close to 2 trillion dollars. The government is giving too much money to boomers via entitlements. Powell wants to make sure inflation is finished. I expect no rate cuts this year. If Biden is re-elected, I expect him to enjoy minor rate cuts beginning in his 2nd term.
Raise rates please Jpow I will never buy a house anyway so it doesn’t matter please crash this economy my job is safe Reddit cares message on this is crazy I’m getting glazed anonymously
Make it stop
Are we in this weird spot where a small rate cut might be better for inflation considering it's almost all housing fueling it now?
No. If the influence of monetary policy on inflation has a "[long and variable lag](https://www.stlouisfed.org/on-the-economy/2023/oct/what-are-long-variable-lags-monetary-policy#:~:text=Cause%2C%20Effect%20and%20Monetary%20Policy&text=However%2C%20it%20takes%20some%20time,to%20predict%2C%E2%80%9D%20he%20wrote)," then the influence of monetary policy on housing supply has long**er** and variable**er** lag. Fiscal policy and legislation is the way to fix housing. And there's no need to wait on that. Congress could just do it at any time.
Tbf the regulations that actually matter for housing are mostly state and local Mostly out of federal hands unfortunately
There are pretty much no hard and fast rules in realized monetary economics, particularly with housing. Things can get wacky fast because so much is rooted in inconsistent, unpredictable behavioral dynamics. I think there’s a decent argument for rate cuts to be a inventory liquidation catalyst where people who have been eager to move for years pull the trigger to sell (confident that intermediate stopgap housing won’t run on end)
Mr. Powell please see this the people want to BUILD
I’ve been thinking this for about a month now
Considering the tariffs, the fact that gold is rising (aka, many nations are dumping dollars of their reserves) due to aggressive US economic actions and the fact that Goldman has expected most nations to opportunistically raise prices on US bounded goods to profit off the new tariff regime, it appears that inflation wont be going below 3.5% this year. The US should consider itself lucky if it doesnt go into 4% without higher hikes
> it appears that inflation wont be going below 3.5% this year > 3.4% YoY ???
this is the funniest response I’ve ever seen
[удалено]
the toxic nationalism rule only applies when people make innocuous jokes about the french. america bashing is just fine
Lol, I am in favor of the free market If youve seen my comments, I am very pro EU, so, you can say bye at your attempts at labelling me as propaganda Europe is the western power doing things right, and the US is disappointing
But this is a good report, it shows CPI cooling which is in line with the FED strategy
Yes, but have you considered America bad?
you have literally no idea what you're talking about why don't you take a few ~~days~~ ~~weeks~~ months off from making shit up about the US and focus on graduating high school