WOW! Is it just me or have prices sky rocketed on gear?

[laxu]

can't compare todays gas prices to covid gas prices.

Gasoline's all time high was back in 2008 and adjusting for inflation, we still aren't there yet.

Its an interesting discussion. So many people are financial disasters while carrying burdensome credit card debt (on average, 5500 per card at around 100 a month in interest), eating out 5 or more times a week, pay bills late or not at all incurring heavy fees etc, yet when a commodity goes up, THATS the backbreaker! Personally, if I were paying 100 a month in interest on anything I'd be losing sleep and would tighten the belt until that debt was vaporized.

I have close to a 70 mile round trip commute. Every dollar of gasoline prices costs me around 60 bucks a month. Thats 1 night a month cooking at home instead of going out, or 1 frivolous amazon order I don't need etc etc etc. It really isn't the big deal its being made out to be.

I think for many lower income folks that extra $60 might mean not making rent, not being able to buy quality food or essentials for your family. But to be fair they are probably not buying guitar gear either.

I get your point about a lot of people living above their means. Many don't manage their money well or impulse purchase things on credit.

Meanwhile I just picked up a used Axe-Fx 3 Mk 2 for what I felt was a fair price.

PS. Gas prices are above 2 euros / liter here in Finland. How's that for expensive?

 

[Fjelltronen]

Here in the UK I run my car on premium diesel (better for my engine and it's performance) and am currently paying £1.79 (Euro 2.17) per litre.

 

[Bruce Sokolovic]

I think for many lower income folks that extra $60 might mean not making rent, not being able to buy quality food or essentials for your family. But to be fair they are probably not buying guitar gear either.

I get your point about a lot of people living above their means. Many don't manage their money well or impulse purchase things on credit.

Meanwhile I just picked up a used Axe-Fx 3 Mk 2 for what I felt was a fair price.

PS. Gas prices are above 2 euros / liter here in Finland. How's that for expensive?

To counter your point, 60 bucks is 4 hours more a month work at a minimum wage job (in this state). Low income is a lifestyle and mentality.

I think for many lower income folks that extra $60 might mean not making rent, not being able to buy quality food or essentials for your family. But to be fair they are probably not buying guitar gear either.

I get your point about a lot of people living above their means. Many don't manage their money well or impulse purchase things on credit.

Meanwhile I just picked up a used Axe-Fx 3 Mk 2 for what I felt was a fair price.

PS. Gas prices are above 2 euros / liter here in Finland. How's that for expensive?

They’re not getting quality food for the right prices now. They can save the 60 a month if they shopped the sales and clipped coupons. Most everyone I know can’t be bothered to do that. I save a fortune that way. I’m not above printing out and clipping coupons. Hell I can squeeze a quarter until the eagle screams. Probably why I’m not classifiable as low income or worried much about a commodity price out of my control.

 

[∞Fractals]

Let’s not confused taxes, with commodity costs.

The price per barrel is the same for every country unless you roll your own.

 

[Bruce Sokolovic]

Let’s not confused taxes, with commodity costs.

The price per barrel is the same for every country unless you roll your own.

or heavily subsidize, like Venezuela which comes with all sorts of other problems.

By the way folks, the S&P is down another 2%. Most people I know including myself are watching thousands upon thousands of dollars burn away on a daily basis lately. Makes the lousy 60 bucks a month expense in extra gas seem moot.

 

[Sixstring]

This thread is going to read a lot different in 90 days or less!

 

[BBN]

or heavily subsidize, like Venezuela which comes with all sorts of other problems.

By the way folks, the S&P is down another 2%. Most people I know including myself are watching thousands upon thousands of dollars burn away on a daily basis lately. Makes the lousy 60 bucks a month expense in extra gas seem moot.

Ah yup.
Gas prices are the least of my worries.

 

[Bruce Sokolovic]

This thread is going to read a lot different in 90 days or less!

That’s plenty of time for a quick rebound

 

[rrhoads17]

Prices won't come back down. All this "Quantitative Easing", which is just a euphemism for printing money, has doubled the money supply in 10 years. This, in turn, has effectively devalued currency by 50%.

The only way prices will come down is for a recession to force them down. A recession is bound to happen if inflation keeps going up.

 

[Toopy14]

A recession is bound to happen if inflation keeps going up.

In a normal economy, which we're not in at the moment due to the pandemic and global unrest, the most effective way to tackle inflation, is to raise interest rates. The problem is, raising interest rates to cool the economy is not as immediate as lowering interest rates to stimulate the economy, there's a time lag. With the amount of debt most households are carrying and with a housing market that has gone mad, with buyers paying 100k or more over asking, an increase in interest rates of a couple of percent is going to be a disaster. It will be more than just a recession.

 

[rrhoads17]

In a normal economy, which we're not in at the moment due to the pandemic and global unrest. The most effective way to tackle inflation, is to raise interest rates. The problem is, raising interest rates to cool the economy is not as immediate as lowering interest rates to stimulate the economy, there's a time lag. With the amount of debt most households are carrying and with a housing market that has gone mad, with buyers paying 100k or more over asking, an increase in interest rates of a couple of percent is going to be a disaster. It will be more than just a recession.

Explain how a rate increase would hurt home owners and cause a disaster. I get how it would affect buyers, but at the same time, wouldn’t a rate hike force housing prices to go down?

 

[Toopy14]

Explain how a rate increase would hurt home owners and cause a disaster.

Here's an analysis I did of the Canadian housing market, from the mid 70's to the early 80's, when many people lost their homes.

https://forum.fractalaudio.com/thre...y-rocketed-on-gear.181572/page-2#post-2225983

[Edit]

Here's what inflation did in Canada, in that time period. It went from 2.7% in 1971 to 12.27% in 1981.

Here's a snapshot of the last year, up to Jan 2022. I can guarantee you, it's much higher (ie., $200 grocery bill is now almost $300, a spool of 14/2 wire, last summer $67 now $151, etc.) because the government fudges the number by modifying what's in the inflation 'shopping cart'. Now, add to this what's going on in the world and the impact on fuel prices, which will be passed on to consumers by manufacturer's and you have a real ugly picture.

 

[Joe Bfstplk]

I myself try not to think about the negative so I take advantage of the situation. I sold my house 2 months ago and sold it for more than twice what I bought it for and I about had the house paid off on top of it so what I did I took the money that was left over after paying the fees to the realtor and bought a vacation/Retirment home close to the ocean and where its warmer and its paid off in full.

Sweet....

There is more than one way to skin a cat.

I'd rather skin politicians....

 

[Sixstring]

That’s plenty of time for a quick rebound

I like your optimism! but some things have been set in motion that can't be stopped.

In the direction that things are currently going I'm expecting nothing less than massive recession that makes the U.S. real estate bubble of 08 look like a small bump in the road.

The same thing with respect to housing prices are happening again! Here in California houses that were selling brand new in the low 300's (starter house) 1600 Sqf on a 8000 Sqf lot, in 2 short years are now appraising at over 500K+.

That is an unhealthy rate of appreciation, couple that with the inflation we are seeing caused by flooding our economy with too much money add in the intentional increase of the cost of oil plus the problems abroad which are affecting the cost of grain equals a recipe for a disastrous outcome.

The way this thing is unfolding is like a huge turd flying through the air in slow motion headed towards a fan spinning really fast.

 

[Ben Randolph]

I sold a Friedman 412 cabinet last year for $750. It as a grand new when I bought it a few years ago so I was going by used prices based on that. I should have looked on Sweetwater because they are $1400 now! Oh well, I'd already agreed on the deal and the guy was very nice and cool. I'm glad he got a good deal.

I'm also glad I bought all the gear I need during the 2010s. I actually sold thousands of dollars worth of gear last year since it was stuff I simply don't use. I could sell lots more, but my vintage pedals I am keeping.

 

[Bruce Sokolovic]

I like your optimism! but some things have been set in motion that can't be stopped.

In the direction that things are currently going I'm expecting nothing less than massive recession that makes the U.S. real estate bubble of 08 look like a small bump in the road.

The same thing with respect to housing prices are happening again! Here in California houses that were selling brand new in the low 300's (starter house) 1600 Sqf on a 8000 Sqf lot, in 2 short years are now appraising at over 500K+.

That is an unhealthy rate of appreciation, couple that with the inflation we are seeing caused by flooding our economy with too much money add in the intentional increase of the cost of oil plus the problems abroad which are affecting the cost of grain equals a recipe for a disastrous outcome.

The way this thing is unfolding is like a huge turd flying through the air in slow motion headed towards a fan spinning really fast.

HOPE THE HOUSING MARKET BURNS. IM BUYING A HOUSE IN 2 YEARS. HURRY!!!!!!!

 

[Romo82]

Here's an analysis I did of the Canadian housing market, from the mid 70's to the early 80's, when many people lost their homes.

https://forum.fractalaudio.com/thre...y-rocketed-on-gear.181572/page-2#post-2225983

[Edit]

Here's what inflation did in Canada, in that time period. It went from 2.7% in 1971 to 12.27% in 1981.

Here's a snapshot of the last year, up to Jan 2022. I can guarantee you, it's much higher (ie., $200 grocery bill is now almost $300, a spool of 14/2 wire, last summer $67 now $151, etc.) because the government fudges the number by modifying what's in the inflation 'shopping cart'. Now, add to this what's going on in the world and the impact on fuel prices, which will be passed on to consumers by manufacturer's and you have a real ugly picture.

View attachment 97609

Canadian house prices are eyewatering lately, most notably the low to mid market. I bought my first house 7 years ago for ~$140k and equivalent houses in the same village (though on smaller lots) have since been going for $300k+ for no real discernible reason. I was sure when I first saw the asking prices that people were being ridiculous but sure enough they were selling in a couple of weeks.

There has been a massive amount of greedy 'flippers' in the area over the last 3 or so years that have truly fucked the low end market for first time buyers. Assholes up here try to charge $2000 and up for crappy little 2 bed apartments (and I say "2 bed" very lightly as you can barely fit a bed in the second room) which is just insane for this area and makes it nearly impossible for youngsters to pay rent let alone do so AND save for a down payment.
People get raked over the coals regularly on their social posts for their gouging and they almost always respond with something like "I need to make back my investment" or "this is what the market is supporting", completely glossing over the fact they decided to try flipping in the height of a pandemic and bloated housing market to begin with. None of them seem to understand ROI over time and try to recoup it in 3 years just because they threw up some new trim, a lick of paint and then wonder why they cant find tenants.

Interestingly though my work, which is in the Home Automation/Custom A/V market and deals primarily with top 10% earners, has been growing significantly YOY and seen some of the highest $ residential systems we've ever done.

 

[Fjelltronen]

Canadian house prices are eyewatering lately, most notably the low to mid market. I bought my first house 7 years ago for ~$140k and equivalent houses in the same village (though on smaller lots) have since been going for $300k+ for no real discernible reason. I was sure when I first saw the asking prices that people were being ridiculous but sure enough they were selling in a couple of weeks.

There has been a massive amount of greedy 'flippers' in the area over the last 3 or so years that have truly fucked the low end market for first time buyers. Assholes up here try to charge $2000 and up for crappy little 2 bed apartments (and I say "2 bed" very lightly as you can barely fit a bed in the second room) which is just insane for this area and makes it nearly impossible for youngsters to pay rent let alone do so AND save for a down payment.
People get raked over the coals regularly on their social posts for their gouging and they almost always respond with something like "I need to make back my investment" or "this is what the market is supporting", completely glossing over the fact they decided to try flipping in the height of a pandemic and bloated housing market to begin with. None of them seem to understand ROI over time and try to recoup it in 3 years just because they threw up some new trim, a lick of paint and then wonder why they cant find tenants.

Interestingly though my company, which is in the Home Automation/Custom A/V market and deals primarily with top 10% earners, has been growing significantly YOY and seen some of the highest $ residential systems we've ever done.

I guess your customers must be the too big to fail types, or at least I'm glad their money is trickling down your way

 

[Romo82]

I guess your customers must be the too big to fail types, or at least I'm glad their money is trickling down your way

It can be a bit sickening some times. One job was almost double what I paid for my house, just for their entertainment desires

But like you said, at least its coming down to the little people I guess.

 

[∞Fractals]

Don’t hate on other peoples success. As long as others are succeeding it means we have the opportunity as well.


The more that succeed, improves everyone’s opportunities.