- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
For folks that are old enough to remember the high inflation of 70s-80s
Posted on 6/19/22 at 7:41 pm
Posted on 6/19/22 at 7:41 pm
What happens to prices of goods after inflation is brought under control? Do they go down to some previous level, or are the new high prices there to stay and the only way for folks in the middle class to feel less pain is for wages to catch up?
People help educate us younger folks on what to expect in terms of prices in the next 2-3 years?
People help educate us younger folks on what to expect in terms of prices in the next 2-3 years?
This post was edited on 6/19/22 at 7:44 pm
28
Posted on 6/19/22 at 7:42 pm to saintforlife1
Some things will drop. Some things will remain high
Posted on 6/19/22 at 7:43 pm to saintforlife1
buy a house while you can afford the interest rate. about to go through the roof
Posted on 6/19/22 at 7:45 pm to saintforlife1
One thing they will certainly be honest about is their savings account and CD interest rates.
All while now, as the mortgage rates are quickly climbing towards 8%+ and "high yield" savings accounts are like 1.25%
All while now, as the mortgage rates are quickly climbing towards 8%+ and "high yield" savings accounts are like 1.25%
Posted on 6/19/22 at 7:48 pm to Delta9
quote:
What happens to prices of goods after inflation is brought under control? Do they go down to some previous level, or are the new high prices there to stay and the only way for folks in the middle class to feel less pain is for wages to catch up?
People help educate us younger folks on what to expect in terms of prices in the next 2-3 years?
The answer is very much dependent on the good; what strikes me, looking back, are how many products were simply phased out, either due to no longer being useful at the price, or being superceded by a better and newer technology at the newer, high price-- that is to say, for example, that you still paid the increase for the price of a television set vs. what you would have paid for it in 1975, but now it came with a remote control, a better antenna, and didn't weigh as much as a battleship.
Posted on 6/19/22 at 7:50 pm to saintforlife1
When the recession hits, people will buy less. Prices will come down although it will not happen overnight and the prices on some items may not drop to pre-inflation levels.
Posted on 6/19/22 at 7:51 pm to Delta9
quote:
buy a house while you can afford the interest rate. about to go through the roof
But what happens when the market implodes and then you're underwater?
Posted on 6/19/22 at 7:55 pm to saintforlife1
Either prices will equilibrate when the interest rate hikes/recession chokes off demand and producers are forced to streamline over-head to bring down costs to attract consumers.
...or a potential economic miracle occurs during the economic recovery where wages increase while production costs plummet due to increased productivity due to technological advances.
Edit: To an extent, this occurred during the 90s when economic growth occurred at such a level that inflation probably should have occurred, but the dot com boom and computerization allowed a shite ton of productivity to occur with little overhead.
...or a potential economic miracle occurs during the economic recovery where wages increase while production costs plummet due to increased productivity due to technological advances.
Edit: To an extent, this occurred during the 90s when economic growth occurred at such a level that inflation probably should have occurred, but the dot com boom and computerization allowed a shite ton of productivity to occur with little overhead.
This post was edited on 6/19/22 at 8:02 pm
Posted on 6/19/22 at 7:59 pm to saintforlife1
Price war will settle things down...
Posted on 6/19/22 at 8:02 pm to saintforlife1
Both
Posted on 6/19/22 at 8:02 pm to saintforlife1
Will jobs become scarce soon?
Posted on 6/19/22 at 8:04 pm to Mingo Was His NameO
quote:
All while now, as the mortgage rates are quickly climbing towards 8%+ and "high yield" savings accounts are like 1.25%
I saw a credit union advertising 1.25% on a 5 year CD while driving passed a little while ago.
Posted on 6/19/22 at 8:09 pm to Cosmo
quote:
Some things will drop. Some things will remain high
This.
Interest rates for buying a house in the late 70's-early 80's were in the double digit range, which was insane.
Some commodities that had price increases did come back down and you paid the same as before inflation hit, while some products decreased in size but had a price drop back to pre inflation levels---so still paying more per lb., ounce, etc.
Look back at how oyster prices were before the BP disaster in the Gulf. I could buy 100 lb. sacks that contained 20-22 dozen for $35. After BP and being allowed to harvest them again, they started selling half sacks that are going for $50 each and you're lucky to get 100 oysters for that price.
Right now, interest rates for buying houses are great, but the cost of buying a house is insane, especially in urban areas that are popular and in demand.
I just went on the net and the average home price in the US is $375K. Of course there are highs and lows that differ from state to state, but that is the average nationwide. That is insane to me.
Posted on 6/19/22 at 8:10 pm to saintforlife1
My opinion. A lot of stuff is going to come back down: Building materials, clothing, home goods, retail shite like that. Glut of supply coming.
Gas, home energy, and food is going to stay high.
Housing will lower, already is, but higher interest rates will wash some of it out until rates are cut again.
Cars will come way down.
Gas, home energy, and food is going to stay high.
Housing will lower, already is, but higher interest rates will wash some of it out until rates are cut again.
Cars will come way down.
This post was edited on 6/19/22 at 8:12 pm
Posted on 6/19/22 at 8:13 pm to LRB1967
quote:
When the recession hits, people will buy less. Prices will come down although it will not happen overnight and the prices on some items may not drop to pre-inflation levels.
This will be exactly the case.
Posted on 6/19/22 at 8:20 pm to EarlyCuyler3
Housing prices aren't going down anytime soon. The demand is still much greater than the supply. Interest rates increasing should keep prices from going up, but the experts aren't expecting them to go back down.
Even if you are in a local market that prices do fall, it likely won't offset the interest rate increases that will be coming for the next few months.
Even if you are in a local market that prices do fall, it likely won't offset the interest rate increases that will be coming for the next few months.
Posted on 6/19/22 at 8:26 pm to saintforlife1
I remember interest rates hitting 29% and completely shutting down building or doing anything when is that coming
Posted on 6/19/22 at 8:31 pm to EarlyCuyler3
quote:
But what happens when the market implodes and then you're underwater?
My advice would be that if you are buying now make sure it is either your forever home or one you will be happy with for 7-10 years.
Posted on 6/19/22 at 8:34 pm to saintforlife1
I’m not old enough to remember what prices were like but until middle school I thought President Carter’s full name was “Jimmy fricking Carter What A Dumb Son Of A Bitch” because of my Father.
Happy Fathers Day Pops
Happy Fathers Day Pops
Posted on 6/19/22 at 8:38 pm to saintforlife1
Remember though, we had nowhere near the amount of retail options and products in the 80s. We bought a bunch of crap we didn't need but not near what people today are doing.
Page 1 of 4
Popular
Back to top
Follow TigerDroppings for LSU Football News