I can remember my mom and dad telling me about the bad inflation that hit the world as a whole in the early 80's. My dad had just gotten a new job at almost double his original salary. Then things went south. By the time the downturn was over, it was like my dad never doubled his salary. And if it were not for getting the job that he did, we would have been in big trouble.

AS a child I remember what our pastor said..economic recession and recovery will come and go. It may be better times after the recovery, But we will never have it as good as it was before

We definitely need that moustache back! This guy might end up being the mafia boss.

With inflation currently at about 10%, my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy asap.

With markets falling, inflation soaring, the Fed imposing a sharp hike in interest rates, while Treasury yields are rising rapidly, meaning more red ink for portfolios this quarter. How can I take advantage of the current market volatility, I'm still at a crossroads deciding whether to liquidate my $125,000 ETF/Growth Stock portfolio.

Bring back the 'stache! #bringbackthemustache

Thanks 2 Cents for helping us keep our heads 🤣 The news about the economy can be so scary and confusing!!

5:22 you guys omitted an important step that took which reduced inflation finally and got rid of stagflation. it was heavy deregulation that followed during Reagan era starting 1980s. Pensions were replaced with valueless 401ks, labor union almost disappeared leading to wage stagflation that we are still in. Business were given free reign to do whatever they please to make shareholders happy leading to lower quality of goods produced and unhappy employees. As you guys said this led to business opening shop in other countries like Mexico or Asia converting Midwest state into Rustbelt. So, to get rid of stagflation Americans made a deal with devil which though provided benefits in short term has been bleeding this country dry over the years since.

I think we should add "Shrinkflation" to this mix too. This is when companies used to charge $4 for a bag of chips and now charges the same or more, but the bag is much smaller or chips are of lower quality. People don't usually notice this stuff, but companies are doing it and raking in more money for less output.

Yeah i couldn't believe when my parents told me that they had an interest rate on a car at 25% 😬

The fin-Markets have underperformed the U.S. economy as fear of inflation hammers the prices of stocks and bonds. My $400,000 portfolio is down by approximately 25%, any recommendations to scale up my returns before will be highly appreciated.

You’re slowly turning into an emo boy band lead singer each episode lol

Young people weren't really able to afford a home even before rising rates these days. I remember buying during the double digit rates. Fortunately just before they started to drop, so my rates (adjustable) dropped over time. If that were today, the rates seem the least of the problems

The argentinian flag in the lamp and the tango at the beginning was a nice touch....😂😂😂

6:35 sums the dilemma up beautifully; just because government utilizes methods to tame inflation, does not mean that the result isn't painful to people! Plus, people do remember past efforts, and haven't recovered.

I was born in the 70s I remember growing up in the 80s my parents were not into any fast food whatsoever we always ate at home. Driving around from store to store was also a no go and when cable spiked my parents gathered all the channel boxes and dropped them off at the cable company and cancelled. Repairs for the house and car were done by my father. Riding bikes and playing football or baseball were the thing. We survived.

Although inflation and unemployment was high 40 years ago, people online have pointed at that wages went a lot further back in the day (we're still not being paid the same wage as a person in 1968, factoring productivity levels have soared since) and that the cost of more expensive goods (housing and continuing education in particular) were WAY lower in cost or were heavily subsidized (such as the case of education) when counting for inflation

My parents bought their first home from an aunt and uncle set to relocate in retirement. By setting a contract and making payments directly they bypassed the banks and both sides benefited. Granted, it wasn't without risk.

Thanks for making this! It’s going to be really helpful for my us history students studying the economic conditions of the 1970s!

Bro.... you the only one that looks more creepy without a mustache 😳

Can't believe these things Just Keep Happening Also, how are people living paycheque to paycheque supposed to start an emergency fund? Or buy diverse investments? Or are they SOL and should have been born better off? You can't frugal way out of a financial crisis

BRING BACK THE MUSTACHE

Learned about this channel in my personal finance class during my junior year of highschool. Glad I learned about it cause through it I’ve saved 20k in 8 months as a factory worker that lives with their parents. Uses some of it to get a used car and some to max out my yearly contributions to my IRA. Thanks 2 cents!

Housing being turned into investments that people profited off is a huge problem you haven’t touched on in this video. Do you have one on its effect in the economy

I think it's very important to acknowledge the difference between the 70s and today, particularly debt. the largest category of debt in the 70s were mortgages, which are a tangible investment. a house purchased with a mortgages will appreciate in value one of largest categories of debt today is student loans, which are not tangible. sure, a college education leads to higher wages on average, but theres no real appreciation in value.

Thanks so much for making these videos, I had watched one on stagflation a few weeks ago (on a different channel) but struggled to understand. This was really helpful!

He looks so much younger without the mustache.

At this rate, the millennial generation will experience stagflation, nuclear war, and a global winter like The Day After Tomorrow

Thank you for making this video, I really needed to hear the advice to stay steady and keep up with my smart financial decisions over doing something rash!

Where is the man with the mustache!? 😆

Love the roots and the wind analogy

Thanks for making me feel old. I was young, but I clearly remember those times. My Dad worked for a financial institution, so he was able to renew his mortgage at a special employee rate of 14%

Great, that ending is making me sing, the wise man built his house on the rock. If there’s something more certain the taxes, it that the clear sky will turn stormy. It not an if, but when.

I wonder how automation is going to play into things this time. Companies will only have greater incentive to automate away human jobs as cost of employment increases in wealthy countries. As much as I support automating jobs that are dangerous and often unfulfilling on average, I can't help but feel bad for people who genuinely love their jobs and will lose their livelihoods.

Phillip turned from a true gentleman to a “But Dad…” Hipster. And yet I personally 100% okay with that. The pandemic did weird things to peoplw.

I still miss the moustache

There's a recent NY Times article by Paul Krugman called "From Stagflation to ‘Immaculate Disinflation'" that provides a nice overview of comparisons of today with the 1970's (and why it really isn't a good comparison).

philip is going from a financial advisor to a hippie mid life crisis

.......who are you and what did you do with phillip 👀

What a fantastic video!

The gig economy might be factoring in the low unemployment.

Absolute dread @3:01 lol

This is gold.

If Philip gets the mustanche back with that hair, he’d look kinda like Anthony Keidis of RHCP All in all though, good info on this one!

i love you guys!

bring back the mustache

That's just dumb rasing rates in hopes price will come down. Might of work in the 20th century but not today. Just like property taxes " we go by what sells around you" That work back then, not today when price of homes jump 50k to extra 150k. That's a huge jump in taxes. Need a new plan to adjust to today's economy

oh no the NFT accountants

Im not sure my loved ones can wait. 1 is homeless. 2 more are possibly about to go homeless too.

Whoa new hair 😊 love it

👍👍👍

Our price inflation is (as always), chiefly the result of monetary inflation (raising the ratio of money in circulation to GDP) by means of the "stimulus" payments. It's stupid to fight the price inflation (which we caused ourselves ) by raising interest rates, which serves to reduce GDP, actually making the whole problem worse. Causing stagflation is economic insanity. Once we have caused the price inflation, we should just accept it as the price of fighting the pandemic.

I mean if your dream on starting a business or buying a home relied on interest rates , then you are far too dependant on debt in the first place. Sigh.

The hair was certainly 70s in the video😅

Adapt and overcome

OMG The transformation is hugggeeeee

He looks like a pierce the veil extra. Great vid as always

Jfc the timing of KZfaq recommending me this video with the 2nd Yom Kippur war starting yesterday with Hamas bombing and attacking Israel. Let’s see what other similarities occur. Fun times ahead

bro we miss your mustache and short hair please go back

lol unlike in 1970 though, we now all have less wages because of low wage growth so yeah we are fudged

Damn I'm not able to find any Bocchi the rock comments

I sold a couple properties in 2020 and I'm waiting for a house crash to happen so I buy cheap. In the meanwhile, I've been looking at stocks as an alt., any idea if it's a good time to buy? I hear people say it's a madhouse and a dead cat bounce right now but on the other hand, I still see and read articles of people pulling over $225k by the weeks in trades, how come?

I thought it’s OPEC, not OAPEC

I guess my question is why is everyone concerned now? I think inflation and the supply chain issues peaked over a year ago, and the jobs numbers and GDP growth look solid enough. I feel like I’m living in 2023 watching videos about 2021 or 2022.

So as I have said in prior videos you guys are great through just your attempts to get peoples fiscal attention. However, I again think the substance of your information is misleading. My first problem is that you noted that the price shocks haven’t been as drastic as in the 70’s. Yes so far they haven’t if you trust the CPI, and even the less conservative economists laugh when you mention an accurate CPI… but assuming the CPI isn’t a lie, we have such dramatically higher debt loads than in the 1970’s as a percentage of GDP. What if this current period is more like 1973 or 74’ than 1979? What if the worst is yet to come? The question you must answer is whether you really think the fed would raise rates to ~21% again if inflation required it? I THINK NOT! Next is your statement that the global economy is more flexible. NO there is no evidence of that. In fact it is the opposite. Sovereign debt loads in the west are at record highs, European banks are at record price to book ratios and are being bailed out as we speak. UK pension funds shuddered and almost failed even at the thought of rates rising. Below the sovereign level are the businesses. Corporate Europe and America are over leveraged to the hilt, and who blames them with ~0% rates for a decade. ThT was the incentive! And the personal savings rate is at all time lows, the personal debt burden, especially credit cards and other revolving lines are at all time highs. We and Europe are massive import economies with massive trade deficits and now the dollars eminence as reserve is being openly jeopardized. Without the dollar as reserve we cannot continue spending at every level like this! And that leads to the final thought question we must answer. When the fed is forced ti raise rates to 15-20% or higher, and when the dollar isn’t accepted as reserve to the breadth it has for decades, what is congress going to do? In other words, what is congress going to do when they are forced to shrink the government by 88%? They have two choices, actually cut the government by 90%, or print the money and cause hyperinflation. I don’t believe that congress has the political will to do the right thing, just as I don’t believe the fed does either. Owe by the way, another question might be, to assume that the fed grows a pair and actually raises rates as much as necessary at the expense of the economy to save the dollar, will congress allow that? I also believe that congress would desolve the fed before it would allow them to do the right thing. One last P.S. COVID-19 did not make the economy sick. The government did by forcing people to stay home and businesses to close their doors and then printing 40% of our money supply in less than 12 months. Compare this economy to that of the Spanish Flu. The national government didn’t barely get involved in 1918-1919 and the recession was short and minor. And the government did the opposite now and here we are. Asking these questions to ourselves.

Is Phillip's Dad Lemmy? Maybe next episode it will be even more apparent? (K'mon, you know where I'm going... ha ha)

History repeats itself. And those who do not learn from history are doomed to repeat the same mistakes.

National debt exceeding 275% GDP = not very good Get ready for a millennium of stagflation

I found the paperwork from when my dad bought my childhood home in 1990 and he had a variable interest rate that could climb as high as 16%!! My aunt who has worked in real estate her whole career even said that was a totally normal mortgage for 1990. That made me feel a bit better about interest rates today.

Phillip looks really weird without any facial hair.

I might be an idiot, but if YoY inflation sat at 9% for a year and we're now going into the next year, wouldn't inflation be compounding now? Basically (cost+9%)+5%. It's not like we've had a deflation period...

The road to hell is paved with good intentions

The tattoos are growing and growing.

I am surprised with all the protests economically round the world there has not been another great depression yet. All that credit debt, inflation stagflation, and recession...oh well this too shall pass

Why is she wearing a dashiki though...?🤔

It's a shame that they elevate the guy and diminish the girl :(

A disappointing reality when even two cents video can't tell what is being cooked. 😑

Moustache please

I still remember your january 2021 video about "should the government balance its budget?" where you said "most predictions that economist said haven't realised, inflation hasn't gone up" referring to pumping money to the economy. Oh boy, that aged like milk.

Controlled opposition

I love your videos, and gives me a lot of insight into the financial market. So first, big thanks to you! Second, can you make a video about Auto trading in Forex and other markets?

All. Man made, so sad..

Finally someone makes a video showing things aren’t as bad as they seem and they weren’t better in the past. So much of the financial internet these days is people rambling on how young people have it bad and how their parents had it better which is just not true

Im from Venezuela and this inflation is just a joke for me jajaja

Inflation is only scary because the twats that are always in charge(regardless of party) always attempt to deny it or mitigate it instead of telling people how to handle it. Take care of as much variable APR debt as you can(credit cards in particular are a bad one), and try to lock in any big purchases before it really hits. Look for stable investments such as dividends and I-bonds. Above all do not panic. It will be fine.

I love your videos, but what's with the new hairstyle? You look like a college kid who studies French. Bring back the stache!😁

Record profits for large corporations.

I wanna say that our unemployment today is historically the lowest it's been in like 60 years or more, true? Something like 3% right now

I wanna know what kind of home prices people were paying if 18.45% were feasible. I feel like the video is leaving something out like relative prices to income to try to make Stagflation seem worse than our situation. When this inflation is over I doubt housing will become affordable again.

October 2023: add the Israel/ Palestine blow-up to the global crises. History repeating yet again...

CORN

To be fair stagflation was probably not as bad as inflation now because wages kept rising to keep up,not so much now…

"No way to prevent this" says only economic system where this happens

How long has this guy had a sleeve of tats?

Really need to normalize the audio volume between you two...!

You two should stick different finance this is a gross over simplification economic policies and history

It's quite funny to hear people complain about a 10% inflation while I live in a country with a 27% inflation (it was 34% this summer) and a war in "the neighborhood" 😁

The real economy been hungry to start roaring. With inflation falling only improves this because you can't run a business with the price changing day by day. It's like trying to build a house when the measurements change day by day. In the next few years when the economy starts to stage and if other countries start dumbing our exported inflation then we would be in trouble.

But even with all the warning given before the storm hits... people in good times are taking things for granted.. instead of saving for a rainy day or an investment.. they prefer to live the good life.. shops... travels.. luxury brands.. etc.. they preach that if you invest then your travel or retirement will not have a good experience cause you are to old or something..

I recommend you approach the answers to your thesis in each video through the lens of Keynes, then Hayek, and then Friedman. That would cover all the points of view much more fully and give the viewer a better picture of things