Construction costs are currently skyrocketing

Does Buchsbaum still pose as an economics professor using incoherent Bildzeitung-AFD-Telegram-pub wisdom? I haven’t read him for a long time, but in a time full of upheaval it is at least reassuring to know there is continuity here, even if I cannot see it.

Then maybe you should apply as an economist somewhere and shake up the industry. Because with this opinion you stand alone – even with the wrong arguments, which I don't understand either.

I fully understand your skepticism. But if you listen to the economists of various banks, you can only shake your head. Even Ms. Lagarde has to admit today that she recognized and fought inflation too late. I would have advised her to take much larger and earlier interest rate steps. But as I said, I am a layperson and don't even have a high school diploma.

Dr. Jörg Krämer, my favorite analyst and chief economist of the Commerzbank, was of the following opinion in June 2022.

"At its meeting yesterday, the ECB paved the way for a series of interest rate hikes in view of the high inflation rates. 'We expect the ECB to gradually raise the deposit rate to 1.5% by May 2023.' "

Close but no cigar. By May it was already 3.75 percent and today 4.5 percent.

And even in spring 2022 they did not react to the extreme price increases when wholesale and producer prices were already out of control. They downplayed inflation, tying the interest rate adjustment to inflation expectations. Unfortunately, inflation expectations proved to be significantly too low and pretty much all economists were mistaken.

I prefer to form my own opinion and was actually quite close with it.

I prefer to form my own opinion and actually was quite right with it.

I'm happy for you. Eventually, the interest rates will work out too. P.S. Don't trust any statistics you haven't faked yourself. Below is the chart since the late 1990s for the rates of the 10Y Treasuries. This shows well that we currently do not have a crash, but at most have left behind the extraordinary low-interest phase and reached the average.

And last but not least, a little episode.

The Sparda Bank wanted to close my current account in the summer of 2022 after 25 years because I had not given my consent to the charging of negative interest on my deposits. I refuse to be blackmailed, especially not by a bank.

First of all, the interest rates were no longer negative at that time, and secondly, I am not going to pay the bank so that they can lend out my money.

They were very insistent on getting my consent. In the end, though, they didn’t dare to close my account. Today, of course, they don’t want to know anything about it anymore. Those bastards.

The chart shows the yields of the 10-year US Treasurys over the last 100 years.

Oh wow, so the yields are currently at 110%. Where can I buy these things? I'll take them right away...o_O

This clearly shows that we currently do not have a crash

No crash, no panic, and without panic all the rescue-from-doom phrases become useless.

Seriously: This doomsday mood has existed for decades and the doomsdays have been absent just as long. Please search with your trusted search engine for "Unmoralische Chronik der (verpassten) Weltuntergänge" and you will see how often we were supposed to be dead already – according to Dr. Coldwell, of course, even much more often. My studies are also decades ago by now and even back then, panic was stirred up using very similar means and correspondingly doctored charts.

Those who absolutely want to keep listening to the eternally same phrases of our doomsday prophets – well, you can do that, but you don’t have to.