Economy

RedDenver said:
Argument that the inflation numbers are misunderstood:
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Well, I guess we will see.  Yes, we had a dip in pricing in the summer last year due to the pandemic.  However, from what I've seen (I know it's a small sample size) prices now are way above what they were pre pandemic.  

 
"The U.S. dollar is struggling to advance this morning after weakening notably Wednesday in the aftermath of another massive stimulus bill announced by U.S. President Joe Biden and a Federal Reserve indicating it will act like a dove indefinitely," wrote Matthew Eidinger, a market strategist at Cambridge Global Payments.
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With the rapid increase in consumer spending, massive gov't spending, and stimulus funded income increases, we could see the rise of inflation going into an election year.

There is some who predict Jimmy Carter type inflation.  Our economy is a lot different than the late 1970s and we have different tools that the Fed uses to battle inflation that weren't used in the 1970s but I think it is apparent that prices are rising across the board.

If inflation is the issue of 2022, and I believe it will be,  - it will be pinned on Team Biden and the congressional elections will result in the GOP taking back the congress. The massive govt spending will be labeled as the culprit behind the inflation. 

https://www.cnbc.com/2021/05/03/warren-buffett-says-berkshire-hathaway-is-seeing-very-substantial-inflation-and-raising-prices.html

Warren Buffett is seeing inflation among Berkshire Hathaway’s collection of businesses as the economic recovery from the Covid pandemic kicks into high gear.

“We are seeing very substantial inflation,” the Berkshire chairman and CEO said at the conglomerate’s annual shareholder meeting Saturday. “It’s very interesting. We are raising prices. People are raising prices to us and it’s being accepted.”



 


“We’ve got nine homebuilders in addition to our manufacture housing and operation, which is the largest in the country. So we really do a lot of housing. The costs are just up, up, up. Steel costs, you know, just every day they’re going up,” the legendary investor added.

Berkshire Hathaway owns one of the nation’s largest homebuilders Clayton Homes, along with companies such as Benjamin Moore paints and Shaw flooring.
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TGHusker said:
If inflation is the issue of 2022, and I believe it will be,  - it will be pinned on Team Biden and the congressional elections will result in the GOP taking back the congress. The massive govt spending will be labeled as the culprit behind the inflation. 
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Which is unfortunately, because the massive government spending/stimulation has come from both sides.

 
The price of existing home are going through the roof currently as we have a seller's market. Now with the increase in lumber price, building a home may not be a solution for many.  $36k is no small pocket change for most folks.  It will be interesting to see if mortgage rates climb with inflationary pressures as well.  That could be a 1,2,3 strike out for many buyers either trying to buy their 1st house or moving up in size.

 
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