Biden's bad news on inflation

[What Would Jesus Do?]

The San Francisco Fed published an article debunking the corporate greed inflation theory 2 months ago.

Not really. It's pretty clear, if you read it, that sellers took the opportunity to raise prices when low Fed rates and additional stimulus made that easy to do.

We have a term for that: "Profiteering."

Are Markups Driving the Ups and Downs of Inflation? - San Francisco Fed

How much impact have price markups for goods and services had on the recent surge and the subsequent decline of inflation? Since 2021, markups have risen substantially in a few industries such as motor vehicles and petroleum. However, aggregate markups—which are more relevant for overall...

www.frbsf.org

 

[TC Nole OX]

 

[joelbc1]

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And of course, that doubling of price is “Biden’s fault”… correct? Over time, “the market” will separate the shaft from the wheat…economies are quick to raise prices and very slow to lower them. It’s an easy “maximization” of profits in today’s business world.

 

[TC Nole OX]

Watch this bs backfire bigly

 

[TC Nole OX]

Consumers still saying FU to McDonalds

5 dollars for skimpy bs is still way too much

https://www.thestreet.com/restaurants/mcdonalds-new-5-meal-deal-so-far-isnt-going-as-planned

 

[Rifler]

Watch this bs backfire bigly

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Already being done in Europe,.. Give it time and this will become common.

 

[arrrrrghhhh!]

And of course, that doubling of price is “Biden’s fault”… correct? Over time, “the market” will separate the shaft from the wheat…economies are quick to raise prices and very slow to lower them. It’s an easy “maximization” of profits in today’s business world.

Excellent wob!

 

[Obviously Oblivious]

In late 2020, my daughter moved to a county seat town in Iowa to work. A 1500 sq ft 3 bedroom, 2 bath, 2 car garage starter home built in the 70’s - 80’s was in the $140k-$160k range. She decided to rent short term, but in early 2021 got pre-qualified. She found bidding wars on each house and eventually the prices got past her pre-qualified amount. Today the same house sells for $250k.

What corporation is responsible for that crazy price increase?

It’s not just big investors that drove the housing prices upwards. Even in smaller markets local landlords saw a clear profit motive to corner the available market and establish a larger share for themselves which pushes up rent prices accordingly. Tax incentives for the property rental business gives them an unfair advantage over traditional homebuyers who no longer have tax incentives tied to personal home ownership (Thanks Trump!)

Lack of housing supply in high demand markets with feeble new construction activity just made things worse and worse for consumers trying to find homes for their personal use. As with most things, it’s a combination of factors that brought us to this point in time.

 

[joelbc1]

It’s not just big investors that drove the housing prices upwards. Even in smaller markets local landlords saw a clear profit motive to corner the available market and establish a larger share for themselves which pushes up rent prices accordingly. Tax incentives for the property rental business gives them an unfair advantage over traditional homebuyers who no longer have tax incentives tied to personal home ownership (Thanks Trump!)

Lack of housing supply in high demand markets with feeble new construction activity just made things worse and worse for consumers trying to find homes for their personal use. As with most things, it’s a combination of factors that brought us to this point in time.

“Greed” afflicts people of all persuasions….and income levels.