Inflation ? Not here
- Thread starter JackMorgan
- Start date
Inflation is here and real. Problem is you are looking at the wrong thing. The price of oil, commodities, rent, food, gas, healthcare, medicine are all up. You are going to pay for it because you need it, with what monies you have left. What else is inflated? Asset prices are inflated including, that of most stocks and homes. People were bidding up prices of homes because they wanted one like in 2008. Earnings are down, inventories are rising, consumer demand is falling because the US consumer is tapped out. There is still buying out there which is keeping this stockmarket up right now. At some point, those buyers will all be tapped out and at the exact time that the stockmarket goes into that huge crash, finally.
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Yes, and allegedly lumber prices are down because the demand for mortgages is down--not exactly a good sign. It's still good to see at least one commodity price drop, but a drop in oil/gas would be much more beneficial for everyone. Unless you're building or remodeling, lumber prices don't affect most people.
Construction is one of the primary engine of the US economy. You bet your ass lumber price is a key indicator affecting most people.
Try to think a little bit before posting. What percentage of the U.S. population works in construction, lumber or something closely related? How many people are building houses right now? Now go back and think about the "most" part.
https://www.levelset.com/blog/us-construction-statistics-you-need-to-know/#:~:text=In 2019, the construction industry,4.1% of the US GDP.
I like to challenge people who think they're so smart.
I like to challenge people who think they're so smart.
Well go look in a mirror then. I said lumber prices don't affect many people, and certainly don't have the same impact as oil. You're trying to change the goalpost to construction. Construction can actually do well (or poorly) with a wide range of lumber prices. There are many other factors. Record-low mortgage rates spiking will more than offset a drop in lumber prices, for example. High gas prices, OTOH, affect practically every business and consumer.
I answer the questions of your post by providing data to give you the opportunity to revise your opinion.
Also retail prices for goods that are not "staples" started falling. Possibly we saw inflation peak.
The builders are not building that many homes now that there is a huge oversupply of inventory. When most people cannot afford to buy a house even on a mortgage due to inflated prices, prices has to come down. Lumber is closely, tied to the cost of homes because that is what it is used for. As people lose jobs and get laid off, the more people cannot buy homes let alone pay their monthly bills. Inflation is a huge thing because it eats into most people's monthly income.