r/wallstreetbets 23h ago

Discussion 5 rate cuts 😮

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u/clapsandfaps 22h ago

Honestly do they have a choice?

Not to be a doomsayer, but with rising inflation (again) due to tariffs, probable layoffs due to reduced demand on american goods due to tariffs and combine that with high interest to fight the self-induced inflation, people will default, a lot. Even domesctically produced goods will be hit with inflation due to potash tariffs.

I’m seeing in my unqualified crystal ball, a depression happening.

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u/Massive-Opposite-705 22h ago

What the end goal if you print more money for a bail out just continue kicking the can down the road. It’s like we’re building a dam that gets weaker each renovation and gets more water behind it. The longer you keep repairing it with tape and sticks the bigger the flood will be when it collapses. Let pain hit when it is supposed to hit rather than pushing it to the next generation double

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u/Syab_of_Caltrops Dirty HODLer 21h ago

The US is a world champ can kicker. You underestimate this country's can kicking skills.

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u/Krisevol 20h ago

Every world power that has fallen, did so because they kicked the can. Every one of them.

Our choice now or raise rates to 10+% and pay back the debt... Or crumble like the rest.

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u/Syab_of_Caltrops Dirty HODLer 20h ago

LOL, this has been the line for 30 years (since the 90s inflationary period). If you call for the fall of Rome every day for 600 years you'll eventually be right.

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u/Krisevol 19h ago

Yup we will eventually collapse due to debt

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u/crimeo 8h ago

Current debt is completely fine. 1.3x your income is not that high actually. A couple with a new mortgage can be at like 600% of their income in debt and still not even be sub-prime, if they have a good job (the USA is like the guy with the best job of all, normally)

It WON'T be if we print trillions and trillions of dollars instead of just repealing stupid tariffs etc. and no longer "have a good job" anymroe in a depression, etc. But as of November 2024 under normal procedures and business as usual, it was not a meaningful threat at all.