Feds looking at Goldman Sachs' Apple Card business unit

There is nobody causing more harm to regular working people than the a federal Reserve with their crazy interest hikes based on lagged data. Well maybe with exception of Putin… But actually FED might be affecting more people than Putin…

an example, CPI report Fed based their policy on said there was a .8 increase in housing and shelter in December. Show be one place in this country housing increased by .8 percent in December…. The answer is none as all housing has been plunging since summer…

but the Fed is still using that lagged data…

so the Fed need to look in mirror before telling a Goldman what to do to protect consumers

Madbum said:

There is nobody causing more harm to regular working people than the a federal Reserve with their crazy interest hikes based on lagged data. Well maybe with exception of Putin… But actually FED might be affecting more people than Putin…

an example, CPI report Fed based their policy on said there was a .8 increase in housing and shelter in December. Show be one place in this country housing increased by .8 percent in December…. The answer is none as all housing has been plunging since summer…

but the Fed is still using that lagged data…

so the Fed need to look in mirror before telling a Goldman what to do to protect consumers

Home prices have generally been falling, yes. But the BLS doesn't account for such things as part of its CPI reporting. An owned house is considered a capital good rather than a consumption good or service - an investment rather than a cost of living. Inflation measures are about the latter.

What the BLS measures for the Shelter category (as regards CPI) is the cost of renting for actual renters (excluding, e.g., utilities), the theoretical cost of renting for homeowners, the cost of lodging away from home (e.g. at college or in hotels) and the cost of renters and homeowners' insurance. The rent equivalent for homeowners is by far the largest component of the Shelter category, but it isn't based on the prices of current home sales. It's based on what they'd be paying in rent if they were renting instead of owning their residences. In other words, it's based on current rent prices.

The Housing category includes the Shelter category and some other things - e.g., in effect, utilities. But it still doesn't take into account current home prices. Again, CPI measures are about spending on consumption goods and services rather than capital goods investment.

Rental costs have been flattening and are perhaps just now rolling over (it depends on what reporting you look at), but they haven't been plunging, as you say, like home prices have been.

Is this for sure a special probe? Because all national banks are regularly examined by regulators (OCC, Federal Reserve, FDIC) to obtain a CAMELS rating. It is usually the OCC that mainly examines national banks but they all have the power to do it and they share the results.

carnegie said:

Madbum said:

There is nobody causing more harm to regular working people than the a federal Reserve with their crazy interest hikes based on lagged data. Well maybe with exception of Putin… But actually FED might be affecting more people than Putin…

an example, CPI report Fed based their policy on said there was a .8 increase in housing and shelter in December. Show be one place in this country housing increased by .8 percent in December…. The answer is none as all housing has been plunging since summer…

but the Fed is still using that lagged data…

so the Fed need to look in mirror before telling a Goldman what to do to protect consumers

Home prices have generally been falling, yes. But the BLS doesn't account for such things as part of its CPI reporting. An owned house is considered a capital good rather than a consumption good or service - an investment rather than a cost of living. Inflation measures are about the latter.

What the BLS measures for the Shelter category (as regards CPI) is the cost of renting for actual renters (excluding, e.g., utilities), the theoretical cost of renting for homeowners, the cost of lodging away from home (e.g. at college or in hotels) and the cost of renters and homeowners' insurance. The rent equivalent for homeowners is by far the largest component of the Shelter category, but it isn't based on the prices of current home sales. It's based on what they'd be paying in rent if they were renting instead of owning their residences. In other words, it's based on current rent prices.

The Housing category includes the Shelter category and some other things - e.g., in effect, utilities. But it still doesn't take into account current home prices. Again, CPI measures are about spending on consumption goods and services rather than capital goods investment.

Rental costs have been flattening and are perhaps just now rolling over (it depends on what reporting you look at), but they haven't been plunging, as you say, like home prices have been.

Rent has also been crashing since summer across the country…

Madbum said:

There is nobody causing more harm to regular working people than the a federal Reserve with their crazy interest hikes based on lagged data. Well maybe with exception of Putin… But actually FED might be affecting more people than Putin…

an example, CPI report Fed based their policy on said there was a .8 increase in housing and shelter in December. Show be one place in this country housing increased by .8 percent in December…. The answer is none as all housing has been plunging since summer…

but the Fed is still using that lagged data…

so the Fed need to look in mirror before telling a Goldman what to do to protect consumers

The inflation rate is 6.5%.  That is still way too high. You are right about the lagging because they should have started raising rates right away instead waiting. Remember all of that bullshit about inflation being transitory?