Keep Track of Rising Prices

I just went under contract on a home that for the same price 1 year ago would have included a pool and a sailboat access canal with 12k+ lift in a captains walk.

it has no pool and no water access at all

now they’re getting 6-700k for a home that needs 200k worth of work to actually be worth 500k if it’s on the water.
I’m running into that up here looking at lake homes in WI. Problem is we’re back to giving out loans again like it was 2005 with Freddy and Fannie.
 
$4.99/gallon for blue, windshield washer fluid. Paid $3.67 in Feb 2021 and Dec 2019.

That's a 36% increase!
 
ED26561E-6E40-4FC4-A10A-23342203DDDB.jpeg
January 12, 2022, the US reports highest inflation in 40 years.

How’s that Brandon working for ya?
 
View attachment 118364 January 12, 2022, the US reports highest inflation in 40 years.

How’s that Brandon working for ya?
I hear reports that the number they reported (7%) should be closer to 10-12%. The thought is either they lied about it or the data is that far behind. Who knows. Can't believe anything coming out of the gov't's mouth anymore.

I just can't believe anyone could have possibly thought that this wouldn't happen with this administration spending money like it's water. Just unbelievable those that voted for him didn't see this coming.
 
SInce used cars are up 37% under Brandon, I went to browse new Escalades at the local dealer :eek:

View attachment 118590
In my opinion this is a manufactured crisis. I am no electrical engineer but I refuse to believe that this car shortage is due to a lack of microchips from overseas. Do you mean to tell me that we don't have hundreds of companies in this country that could make these chips? This whole "everything" shortage is just a way for the govt to get people used to standing in line for things. Now we have people standing in line waiting for community handouts (i.e. rationing) of covid tests. It's all part of the conditioning of Americans for socialism.
 
This is what housing looks like in the Metro Toronto area….Waterloo is a medium size city about 1 hr west of Toronto.

upload_2022-1-16_9-44-3.png


https://storeys.com/basic-kitchener-waterloo-home-sells-million/

Sadly, bidding wars and bully bids are the norm.
10 years ago, the house probably would have gone for $375k.
With already high rates of taxation, cost of living, and impending interest rate hikes, this won’t end well.
 
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This is what housing looks like in the Metro Toronto area….Waterloo is a medium size city about 1 hr west of Toronto.

View attachment 118602
That’s crazy…… my niece 30 just bought a house west of the beaches in Toronto for $4M…. Imagine that mortgage payment…. They both work for TD but still :eek:
 
In my opinion this is a manufactured crisis. I am no electrical engineer but I refuse to believe that this car shortage is due to a lack of microchips from overseas. Do you mean to tell me that we don't have hundreds of companies in this country that could make these chips? This whole "everything" shortage is just a way for the govt to get people used to standing in line for things. Now we have people standing in line waiting for community handouts (i.e. rationing) of covid tests. It's all part of the conditioning of Americans for socialism.
The biggerst problem is economics is not working. No sane person pays an extra $30,000 for an Escalade. Or $1.2 mil. for a chit box house. Sane people say "I'll pass" and the enconomy slows down and sellers have to adjust their prices to attract buyers. Similarly, manufacturers normally increase their capacity to meet demand, which kept prices stable. That is not happening and people apparently have monopoly money to spend. If the Fed doesn't act quick to pop this bubble it will only be that much more painful later on.
 
The biggerst problem is economics is not working. No sane person pays an extra $30,000 for an Escalade. Or $1.2 mil. for a chit box house. Sane people say "I'll pass" and the enconomy slows down and sellers have to adjust their prices to attract buyers. Similarly, manufacturers normally increase their capacity to meet demand, which kept prices stable. That is not happening and people apparently have monopoly money to spend. If the Fed doesn't act quick to pop this bubble it will only be that much more painful later on.
There is too much cash in the system. Between the endless handouts and the Fed buying up the treasury's debt, there is too much liquidity in the system and it is being artificially propped up. Since money supply (M1) is artificially high, so is demand. I think most of the manufacturers see it for what it is, a demand bubble that has to burst, so why add capacity? Anyone alive during the Carter years knows how this ends. It is going to go very badly for people who extended themselves to buy expensive things like real estate that is way over priced due to the "demand". Who pays $1.2M for a 1,500 sq. ft. house with a single car garage? I would never buy my house for what I could sell it for today, and I love my house. Wait to see what 21% interest rates do to the real estate and durable goods markets. i remember my parents being thrilled to refinance into a 17% interest rate mortgage. That the fed indicated a willingness to raise rates is a good sign though.
 
There is too much cash in the system. Between the endless handouts and the Fed buying up the treasury's debt, there is too much liquidity in the system and it is being artificially propped up. Since money supply (M1) is artificially high, so is demand. I think most of the manufacturers see it for what it is, a demand bubble that has to burst, so why add capacity? Anyone alive during the Carter years knows how this ends. It is going to go very badly for people who extended themselves to buy expensive things like real estate that is way over priced due to the "demand". Who pays $1.2M for a 1,500 sq. ft. house with a single car garage? I would never buy my house for what I could sell it for today, and I love my house. Wait to see what 21% interest rates do to the real estate and durable goods markets. i remember my parents being thrilled to refinance into a 17% interest rate mortgage. That the fed indicated a willingness to raise rates is a good sign though.
So who has all that money? Covid benefits were generous but not so generous as to allow someone to pay a 30% mark up on a car. Or bid up house prices. And they have been over for a while now. Does the average schmuck on the street have all this extra cash that I can’t find a boat?
 
So who has all that money? Covid benefits were generous but not so generous as to allow someone to pay a 30% mark up on a car. Or bid up house prices. And they have been over for a while now. Does the average schmuck on the street have all this extra cash that I can’t find a boat?

Everyone who pays over asking price for the boats you want to buy. But people are paying huge premiums for cars, especially used cars and trucks. Dealers here are paying a premium for your used car even if you aren't buying a new car from them. They can't keep used cars and trucks on their lots.

We have been looking for another condo in our development at the lake for my kids. In 2018 we offered asking price for a unit in our building - $127K - but they decided they didn't want to sell after all. Last year it sold for $210K. Insane, but that bubble will burst so we are just biding our time.
 
Everyone who pays over asking price for the boats you want to buy. But people are paying huge premiums for cars, especially used cars and trucks. Dealers here are paying a premium for your used car even if you aren't buying a new car from them. They can't keep used cars and trucks on their lots.

We have been looking for another condo in our development at the lake for my kids. In 2018 we offered asking price for a unit in our building - $127K - but they decided they didn't want to sell after all. Last year it sold for $210K. Insane, but that bubble will burst so we are just biding our time.


I just paid off my leased 2019 f150 in July. The sticker on it was 58,995 and I leased it based on 48,995 1/2019.

They offered me 55k for it 2.5 years old with 22k miles. I'm sure they would have done a quick detail on it and put it on the lot for 62 and it would be gone in a few hours
 
My son had a 2018 2500 Ram 6.4 loaded. He bought it for $40,000 with 6000 miles on it in mid 2019. He traded it in a few months ago for a 2021 2500 Cummins that was $68,000. His 2018 had 95,000 miles on it and they would only give him $30,000 and would not budge on the $68,000 Cummins. His company was making the payments on his 2018 and are paying him $500/month for this one so he went ahead and made the deal mainly because of the miles and no warranty. They took pics of his 2018 as it sat when he drove it on the lot. Floor mats still had mud on them and his stuff was still in the bed and they put it on their lot for $49,000. Doubt they got that for it but bet they got at least $40,000. They knew they would sell that Cummins that day as there were 2 other customers there for a Cummins and that was the only one they had. In fact they only had 9 brand new vehicles on the lot and they said they normally had about 300.
 
So who has all that money? Covid benefits were generous but not so generous as to allow someone to pay a 30% mark up on a car. Or bid up house prices. And they have been over for a while now. Does the average schmuck on the street have all this extra cash that I can’t find a boat?

No. Not cash. Easy financing. That’s where the defaults will start….all over again, again.
 
I don't recall the "sticker" price on the Infiniti we bought in October. IMHO it's a number that has no meaning. The only price that is important is the difference between my trade and the price of what they're selling me.

When we started negotiating there was about a $50K diff. 4 hours later they met my price at around $25K and I bought it.

No matter how few cars there are on a lot, when they get a buyer in the showroom they DO NOT want that buyer to walk out. They know that once a person makes his decision to buy he will become an owner within 48 hours. The dealer doesn't want to spend a few hours with someone only to have them go to the dealer next door and buy a vehicle.
 
So who has all that money? Covid benefits were generous but not so generous as to allow someone to pay a 30% mark up on a car. Or bid up house prices. And they have been over for a while now. Does the average schmuck on the street have all this extra cash that I can’t find a boat?
Also remember it wasn't just the payments to individuals that put cash in the economy. I have seen a lot of small and medium sized companies that were saddled with debt pre-pandemic that got PPP loans. They were never going to reduce their payrolls because they were in "essential" industries. So they found themselves sitting on this PPP money and used it to pay down debt and shore up their balance sheets. That allowed the owners to make larger distributions to themselves and have more cash to buy things.

Add to that the fed has been buying $80B in treasuries and $40B in mortgage backed bonds each and every month. That's a lot of cash being injected into the economy.
 
Racor 2040n-30 (30 Micron) elements:

March 2020: $7.39
January 2022: $8.39

That's a 13.5% increase.
 

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