Lumber prices have fallen 47% year to date and are down 65% from a 2021 record high of $1,733 per thousand board feet. The big drops should help ease inflationary pressures in the housing market, and the costs to build should come down, Markets Insider reports.
A closely watched gauge of mortgage application activity slid to a 22-year low last week, as elevated home prices and rising interest rates dragged further on purchase and refinancing activity.
Here’s what my Grandfather said about the great depression… he was 11 in 1929 when it started, and living in rural TN:
“The strange thing was… you could have a whole shoebox full of money and it didn’t matter… there was nowhere to spend it! Most of the stores were closed, and the ones that were open had nothing to buy! There’d be empty shelves, maybe some old fruit with flies buzzing around on it…and some old guy just sitting behind the counter reading a 2-3 day old newspaper!”
There will be inflation AND deflation… unnecessary items like TVs and Newest latest gadgets will
Come down in price… they actually respond to market laws of supply and demand… where things that are lighter and necessary like potato chips may stay stable— but raw potatoes, weighing a lot and therefore costing to be diesel-trucked in, will shoot sky high.
The farmers will initially be happy, and when they go to plant more potatoes, the fertilizer and diesel for the machines will eat all of their profit margins…
We are about to see some wild see-saw shit.
It’s gonna be nuts. It’s gonna be like India up in the US. People riding horses on the freeway alongside McClarens and shit. A whole class of shanty town untouchables… we’re just one big credit crunch away, actually.
Yeah it will be scarcity not prices that crowd us out. When there's no food for the people in the countries where we get our food.... we're not going to get any.
From: https://www.floridarealtors.org/news-media/news-articles/2022/06/did-lumber-bubble-burst-prices-drop-12
From: https://www.msn.com/en-us/money/realestate/mortgage-activity-hits-22-year-low-as-rising-rates-bite-housing-market/ar-AAYdxcI
Here’s what my Grandfather said about the great depression… he was 11 in 1929 when it started, and living in rural TN:
“The strange thing was… you could have a whole shoebox full of money and it didn’t matter… there was nowhere to spend it! Most of the stores were closed, and the ones that were open had nothing to buy! There’d be empty shelves, maybe some old fruit with flies buzzing around on it…and some old guy just sitting behind the counter reading a 2-3 day old newspaper!”
There will be inflation AND deflation… unnecessary items like TVs and Newest latest gadgets will Come down in price… they actually respond to market laws of supply and demand… where things that are lighter and necessary like potato chips may stay stable— but raw potatoes, weighing a lot and therefore costing to be diesel-trucked in, will shoot sky high. The farmers will initially be happy, and when they go to plant more potatoes, the fertilizer and diesel for the machines will eat all of their profit margins…
We are about to see some wild see-saw shit. It’s gonna be nuts. It’s gonna be like India up in the US. People riding horses on the freeway alongside McClarens and shit. A whole class of shanty town untouchables… we’re just one big credit crunch away, actually.
Yeah it will be scarcity not prices that crowd us out. When there's no food for the people in the countries where we get our food.... we're not going to get any.