Anthony Scaramucci Says Politicians 'Get Away With Robbing' Working Class Who Feel 'Inflation-Adjusted Rich'
SkyBridge Capital founder Anthony Scaramucci said Thursday that politicians are getting away with eroding working-class Americans’ wealth because most people can’t tell nominal gains from real ones, with prices still rising across the economy.
Nominal Gains vs. Real Gains
In a post on X, Scaramucci said that his parents paid $16,000 for the house he grew up in, and Zillow now values it at $783,000.
Priced in gold, he noted, the house cost 450 ounces in 1962 and is worth 250 ounces today, so “the house actually lost value.”
“Politicians get away with robbing working class people blind because most people don’t realize their nominal gains aren’t real gains,” Scaramucci added.
He argued that people think they’re “inflation-adjusted rich, but they’re not.”
Housing Costs Keep Building
Consumer Price Index rose 3.7% in September from a year earlier, above the 3.6% economists expected. Meanwhile, inflation in 1962 ran at 1.3%.
Today’s costs are climbing for households already struggling with high grocery prices and elevated gas prices.
Shelter rose 0.4% in September and is up 3.2% from a year ago.
Shelter costs continued to rise, putting pressure on both homeowners and renters.
PulteGroup Inc. (NYSE:PHM) said buyers are putting home searches on hold as mortgage rates surge.
Inflation, Mortgage Rates Squeeze Household Wealth
The 10-year Treasury yield, a key benchmark for mortgage rates, recently hit a 24-year high of 5.36% before easing to around 4.96%. The 30-year yield similarly reached 5.73% earlier this month before retreating.
The Federal Reserve raised interest rates by 25 basis points last month, and is expected to hike another this year, adding further pressure on households.
The central bank meets again next week, and CME FedWatch shows a 7.2% chance of a hike then and an 80.5% chance of one in December.
Price Action: The iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) closed 1.08% higher on Thursday at $91.20 and climbed 0.14% in after-hours trading. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) closed 1.87% higher at $81.74 and rose 0.097% in extended trading.
According to Benzinga Edge rankings, the 7-10 year bond ETF has a Momentum score in the 31st percentile and a negative price trend across the short, medium, and long term.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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