The U.S. economy is braking hard, says Starwood Capital’s Barry Sternlicht

Barry Sternlicht, Starwood Capital Group chairman and CEO, joins CNBC’s ‘Squawk Box’ to weigh in on the U.S. economy, inflation, and the Federal Reserve’s efforts to tame high prices.

Written by CNBC Television


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  1. Somebody help me here- how is it bad if civilian rents and real estate deflate? They seem like they were jacked up by wealth inequality factors and demography preferences for people 65+ wanting to downsize…. Into the homes that millennials were eyeing for themselves I might add. I fail to see how that was a normal reflection of the real economy for the rest of Americans. The music stopped. So why should the prices continue to rise (outside of wage growth)… Am I missing something here? I don't know what he's on about here is all.

  2. I feel sorry for younger people. You’re not old enough to remember the 70s and you don’t know what’s coming at you. For those of us who have paid off our debts and own land and are ready for a severe downturn, we will watch from the side lines.

  3. Dear Democratic party thank you for all your money giveaways "stimulus programs" . You are writing checks we can't pay. Your policies are going to bankrupt our nation. For Christmas this year I will have to send my kids and grandchildren checks not gifts so they can buy food and pay rent. Merry Christmas all.

  4. Rents are off the charts because the supply has been artificially constrained by the local governments' permitting process. Thats the main cause of runaway housing costs; the greed of the current homeowners to protect the value of their homes by limiting supply. There can be no better justice for this than a steep drop in the housing values that these people have tried to protect so nastily.

  5. Here in Canada, rent is already going down month to month. I agree with him. The interest rate is always relative. Going from zero to 3.25% is not the same as going from 2% to 5:25%.
    Inflation will come down. The fed is looking at months old data just like they did last year. Making the same mistakes resulting in completely different outcomes.
    To sum up, the economists don't not know what they are doing. They are burning down when the mice are already starving in the basement.

  6. With inflation running at a four-decade high, a Recession is now the ‘most likely outcome for the economy. How can I grow my portfolio to outpace inflation and maintain a successful long-term strategy? I have been reading of investors making about $250k profit in this current crashing market, and I need ideas on how to achieve similar profits.

  7. The whole purpose of this deep state shill coming on here with truth bombs… is to set the stage for the Fed to raise their inflation target up to 3-4%.

    And the Fed is going to keep beating you until you beg for exactly that.

  8. This guy makes money on inflation of rents, what a I don't know if he is old enough to remember the 70's but I was there and in my 20's. Anyone who wants inflation has either a vested interest or is just merely crazy. Paul Volcker is a true hero to me yet I remember the hell he put us through to fix the inflation problem. I managed a company during the two back to back recessions and it was very difficult – worse than the Great Recession of 2007-2009.

  9. Circa 81Million Americans voted for this. Some people should be careful about what they wish for! My concern is that the U.S. will take down the rest of the Western economies with it.

  10. If you stay invested and ignore the market's ups and downs, you'll make a lot of money in the long run; however, a severe market correction causes a lot of margin calls and sell-offs, driving the market even lower. People get greedy in this bull market and it's extremely irresistible.

  11. Inflation is the ONLY number that counts. This idiot needs to go to the grocery store.

    Debt, growth, taxes, et al mean nothing when inflation is where it’s at.

    Rates need to go above 10%

  12. Cool that he mentioned the wage thing but there are not a lot of companies giving people big enough raises to cover the cost of 2, 3 or 4 percent inflation let alone anything close to trickle down economics or adjusting wages according to our now 8-9% inflation. Cool story but that is not realistic based off most peoples experiences.

  13. Guys like this fellow borrowed money at near 0% short term, less than 3% long term, extreme leverage, private equity stupid money. They jacked up price of houses, rent. Average person can not afford rent, Let alone buy. Rest of prices like cars, food, utilities,gasoline, education, healthcare are way too hi. Need hi interest rates so we get deflation an can afford to live. This dude wants us to be indentured servants and pay rent, while he borrows at dirt cheap rates.

  14. We never fixed the problem from 2008 real estate lords of land pandemic.

    That’s what they wanted for you to rent and never start a family. Don’t worry prices need to correct more than you might comprehend. Look at it this way if someone needs to sell and I only have $5 in my pocket and no loan I might get it for $5. Maybe not $5 but it’s a market of buyers and sellers which agree on a price. Once you outlaw privatization of real estate( yes once way back in the day society thought it was a bad idea for landlords to steal your money if your sleep(profits)). Then only real families set the market:)

    CPI… they don’t even include oil in it as they think well you need it.

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