Inflation.......... ?

BuildingConceptsllc

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Good points.

I just don’t see this resolving itself quickly without additional firms entering the market with significant capacity.

When the conditions are low inventory and low interest rates, the market is going to get over heated. Now if interest rates go up then I think this bubble is going to burst again. I don’t see it that much differently as what happened in 07-08. Just this time, instead of buying mortgage backed securities, the big boys are buying the actual homes instead.

Even with the housing market the way it is, still probably a better time to buy than during the late 80’s with interest rates of 18%


The big difference is in 08, fed govt was forcing lenders to do loans they otherwise wouldn't have done to folks who couldn't possibly pay em. Also, the bundling last made the burst way worse.
 

Choid

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The big difference is in 08, fed govt was forcing lenders to do loans they otherwise wouldn't have done to folks who couldn't possibly pay em. Also, the bundling last made the burst way worse.
This ends up being kind of true, and kind of not true. Yes, the Feds had a policy that would have forced banks to make bad loans, but, the banks were being sooooo irresponsible on their own, that they didn't need any encouragement making the loans. Those policies, rotten as they are, come into play much more in responsible times.
 

BuildingConceptsllc

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This ends up being kind of true, and kind of not true. Yes, the Feds had a policy that would have forced banks to make bad loans, but, the banks were being sooooo irresponsible on their own, that they didn't need any encouragement making the loans. Those policies, rotten as they are, come into play much more in responsible times.

Look, this is what I do for a living and I was doing it then too. They wouldn't have been so irresponsible if the govt had backed and forced the loans. Period. Lots of irresponsible business stuff done all the time and so it was then too, but that's a drop in the bucket. This is my area of expertise, I've lived it and I closed many of those very homes.
 

Choid

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Look, this is what I do for a living and I was doing it then too. They wouldn't have been so irresponsible if the govt had backed and forced the loans. Period. Lots of irresponsible business stuff done all the time and so it was then too, but that's a drop in the bucket. This is my area of expertise, I've lived it and I closed many of those very homes.
I believe that that was your experience, and I don't at all deny, nor support, those government programs. That said, I can tell you, from having run a hedge fund for twenty years, and seeing the money supply side of that boondoggle up close, that the amount of money flowing into those securities was going to lead to enormous mispricing anyway, and did, just like they did in previous crises where perverse government incentives were not as clear. The government policies had a marginal effect, but they were not the driver we all wish they were.

The major drivers of the actual crisis were people who didn't understand risk. Up and down the line. If you want to argue that the government being willing and able to bail out investors time and time again lowered the risk premium to a minuscule level, and that this was a huge driver of the mispricing, I will be right with you. That was undoubtedly the biggest .gov contributor to the fiasco.

Anyway, the overall point is that the real problems came after the mortgages and loans. That was the driver of the crisis, along with homeowners not understanding risk at all.
 
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thestoicmarcusaurelius

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The big difference is in 08, fed govt was forcing lenders to do loans they otherwise wouldn't have done to folks who couldn't possibly pay em. Also, the bundling last made the burst way worse.
I don’t disagree but I also think that as long as the fed is setting the interest rates and not the market and engaging in massive stimulus then a similar environment can exist without those specific policies still in place.

I would say it was more obvious in 07/08 last time because we all saw people with low income jobs getting massive loans. That created some obvious examples of what was happening.

But I would argue having a non market interest rate set by the fed reserve, we are just going to have these cycles whenever high stimulus, low interest rates, low inventory, and non rampant inflation exist at the same time in the housing market at least. I would say this is the new normal if these current policy trends continue.
 

Choid

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I don’t disagree but I also think that as long as the fed is setting the interest rates and not the market and engaging in massive stimulus then a similar environment can exist without those specific policies still in place.

I would say it was more obvious in 07/08 last time because we all saw people with low income jobs getting massive loans. That created some obvious examples of what was happening.

But I would argue having a non market interest rate set by the fed reserve, we are just going to have these cycles whenever high stimulus, low interest rates, low inventory, and non rampant inflation exist at the same time in the housing market at least. I would say this is the new normal if these current policy trends continue.
I don't think anybody would be particularly upset by long term high stimulus, low interest rates with low inventory and disinflation. It is literally the ultimate happy place. I just don't particularly see how it can endure.
 

thestoicmarcusaurelius

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I don't think anybody would be particularly upset by long term high stimulus, low interest rates with low inventory and disinflation. It is literally the ultimate happy place. I just don't particularly see how it can endure.
I don’t think anyone would disagree with that.

But, the other side of that coin is that the economy is so fragile that an interest rate change of a few percentage points can result in the economy going from over heated to a recession. So, in this new normal economy, it seems like there’s not a way to pump the breaks on inflation without having what happened in 07/08 happen again. Rinse, lather, repeat. Or, at least that’s the way I see it in my lizard brain lol.
 

BuildingConceptsllc

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I believe that that was your experience, and I don't at all deny, nor support, those government programs. That said, I can tell you, from having run a hedge fund for twenty years, and seeing the money supply side of that boondoggle up close, that the amount of money flowing into those securities was going to lead to enormous mispricing anyway, and did, just like they did in previous crises where perverse government incentives were not as clear. The government policies had a marginal effect, but they were not the driver we all wish they were.

The major drivers of the actual crisis were people who didn't understand risk. Up and down the line. If you want to argue that the government being willing and able to bail out investors time and time again lowered the risk premium to a minuscule level, and that this was a huge driver of the mispricing, I will be right with you. That was undoubtedly the biggest .gov contributor to the fiasco.

Anyway, the overall point is that the real problems came after the mortgages and loans. That was the driver of the crisis, along with homeowners not understanding risk at all.

Yes, I would definitely argue that the guaranteed bail out was a huge factor, and it still is! The massive forced lending was the driver though it took both to make such a massive catastrophe.

Of course the easy money + printing (which you like to downplay) is always going to cause inflation and we are about to see much much more of it. While lumber will go down (probably end of june- August -ish), it may not be as noticeable and "real" because of the rise in many other things. Fuel cost are a big factor here. That raise we all got under trump with low fuel costs is gone now and will hurt,especially low and middle income as everything continues to go up until the great crash.
 
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Choid

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Yes, I would definitely argue that the guaranteed bail out was a huge factor, and it still is! The massive forced lending was the driver though it took both to make such a massive catastrophe.

Of course the easy money + printing (which you like to downplay) is always going to cause inflation and we are about to see much much more of it. While lumber will go down (probably end of june- August -ish), it may not be as noticeable and "real" because of the rise in many other things. Fuel cost are a big factor here. That raise we all got under trump with low fuel costs is gone now and will hurt,especially low and middle income as everything continues to go up until the great crash.
I don't downplay easy money/money printing. I downplay, I think to a responsible level, the effect of fiscal policy on output and inflation. As far as easy money, I believe it will and does cause inflation. But what I have said is that I am unable to be as sure about that relationship as I was twenty years ago, because of the events of the last twenty years. Hold a gun to my head, and I will tell you there is a strong relationship, but in discussing it, I can't help but have my own doubts based on recent history. That's all.
 

Choid

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I don’t think anyone would disagree with that.

But, the other side of that coin is that the economy is so fragile that an interest rate change of a few percentage points can result in the economy going from over heated to a recession. So, in this new normal economy, it seems like there’s not a way to pump the breaks on inflation without having what happened in 07/08 happen again. Rinse, lather, repeat. Or, at least that’s the way I see it in my lizard brain lol.
I agree, with the proviso that the expansion from 08-now has only been broken by Covid, and we have come back from that very nicely. As opposed to the pre-Greenspan era where we saw many more cycles. I think the big danger now is not so much in how to curb inflation, but that if things go bad for reasons other than inflation, we have no ammo left. Theoretically, if we clamp down on inflation, we give ourselves ammo (interest rate room) to reflate, but if we go south for another reason, much more difficult.
 

BuildingConceptsllc

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I don't downplay easy money/money printing. I downplay, I think to a responsible level, the effect of fiscal policy on output and inflation. As far as easy money, I believe it will and does cause inflation. But what I have said is that I am unable to be as sure about that relationship as I was twenty years ago, because of the events of the last twenty years. Hold a gun to my head, and I will tell you there is a strong relationship, but in discussing it, I can't help but have my own doubts based on recent history. That's all.

That's fair, and. I understand what you are saying, but comparing the last 20 years to this last year period is not correct. M1 has gone from about 4trillion to over 18 trillion, in ONE YEAR! The only thing that's comparable to is Zimbabwe
 
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Choid

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Have we entered the realm of parody now? First of all, the US can service any dollar denominated debt. That is not in question. The only question is the future cost of borrowing more.

And complaining out of one side of your mouth about inflation and the other about raising rates is going FULL RETARD. Don't you people yet understand that fiscal policy has about 5% as much influence on inflation as monetary policy? I am guessing not. It isn't a fucking secret if you can read, or if you have bothered to go to school.

That's fair, and. I understand what you are saying, but comparing the last 20 years to this last year period is not correct. M1 has gone from about 4trillion to over 18 trillion, in ONE YEAR! The only thing that's comparable to is Zimbabwe
To be fair, this whole debate started this morning be my pointing out just that.
 

thestoicmarcusaurelius

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I agree, with the proviso that the expansion from 08-now has only been broken by Covid, and we have come back from that very nicely. As opposed to the pre-Greenspan era where we saw many more cycles. I think the big danger now is not so much in how to curb inflation, but that if things go bad for reasons other than inflation, we have no ammo left. Theoretically, if we clamp down on inflation, we give ourselves ammo (interest rate room) to reflate, but if we go south for another reason, much more difficult.
That’s a good point.

Also a scary point.

Policy tools are basically being used to exhaustion in the current state.

If the economy cools down into a recession or worse in the current environment then it’s hard to say what more could be down other than greater levels of what’s already being done, which is already at the level of what most people would think would be the limit of what is sustainable in the long run.
 

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Wages have been suppressed, we outsourced everything that can fit into a shopping container, and every last bit of friction was ruthlessly eliminated.

On that latter point, the past few years have resulted in friction finding its way back into the economy. And since so many people in charge of government and industry don't really understand how things like supply chains work ("what do you mean we can't build trucks without semiconductors?!?"), it may be monumentally difficult or downright impossible to get back to where we were.
I agree with you... This is a scary thought for many American's.... We are witnessing "Atlas Shrugged"....
 

BuildingConceptsllc

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To be fair, this whole debate started this morning be my pointing out just that.

That is conflation my friend... you would have us believe that low interest rates are mostly responsible for this, and I would say the printing press or other actions taken (initiated by government mind You) that produce the same effect are what's mainly responsible, though easy money is always inflationary of course. We are on the verge of semantics here really, since the line between bogus fed and bogus govt has become so blurry and intertwined.
 

Choid

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That is conflation my friend... you would have us believe that low interest rates are mostly responsible for this, and I would say the printing press or other actions taken (initiated by government mind You) that produce the same effect are what's mainly responsible, though easy money is always inflationary of course. We are on the verge of semantics here really, since the line between bogus fed and bogus govt has become so blurry and intertwined.
What do you consider using the "printing press" if not for loose monetary policy and other extreme Federal Reserve actions? That is pretty much the colloquial definition. It doesn't generally include fiscal policy. And yes, I am saying that fiscal policy has not proven to be very inflationary, even when it is used to reflate the economy. That's not to say it cannot be, but it is weak sauce compared to changing interest rates and other backstopping policies.
 

Choid

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That’s a good point.

Also a scary point.

Policy tools are basically being used to exhaustion in the current state.

If the economy cools down into a recession or worse in the current environment then it’s hard to say what more could be down other than greater levels of what’s already being done, which is already at the level of what most people would think would be the limit of what is sustainable in the long run.
Exactly. Basically, we have thought for a long time, or at least most people have to some degree, that in a recession we have monetary (fed) and fiscal (congress) tools. Through guys like Milton Friedman and then John Taylor, we kind of started to understand that Keynesian fiscal policy was BS, but we didn't KNOW it was BS until we tried it one last time in '09*. OK, we knew it was BS, but we tried it anyway. And it was really impotent. That left one lever of policy -- monetary. But without any extra ammo there, I don't know how we deal with crisis.

*the impotence of the '09 stimulus should be instructive to everybody. Not just for analysing future stimulus policy, but also for understanding that fiscal policy has less influence in most environments than we thought.
 

BuildingConceptsllc

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What do you consider using the "printing press" if not for loose monetary policy and other extreme Federal Reserve actions? That is pretty much the colloquial definition. It doesn't generally include fiscal policy. And yes, I am saying that fiscal policy has not proven to be very inflationary, even when it is used to reflate the economy. That's not to say it cannot be, but it is weak sauce compared to changing interest rates and other backstopping policies.


I'm saying that just because the Fed technically releases money, the govt is who has really done it "this time" . I'm also saying that there is no longer such a thing as "fiscal vs fed" spending. They have merged. Literally and figuratively.
 
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Hobo Hilton

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Contractors are buying it in bulk now to keep up with demand in my area. If they don’t buy it now, it can take up to several months for the orders. He’s not wrong. We order components before submittals get approved or we will be fu**ed. More fu**ed than If we order the material and the submittal gets denied.
I picked up some flooring last week at the warehouse of one of the largest flooring suppliers in my area. The guy's there said the warehouse was busing at the seams with inventory... Contractors are ordering, paying for it and letting it sit in a local ware house until it's needed... That is one way to make sure material is there when it is needed. Some warehouses are now charging storage. All of this adds to the cost of houses and commercial buildings.
 

Choid

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I'm saying that just because the Fed technically releases money, the govt is who has really done it "this time" . I'm also saying that there is no longer such a thing as "fiscal vs fed" spending. They have merged. Literally and figuratively.
I'm sorry, but that just isn't the way it works. Like somebody above with an llc said, this is literally my business, and it doesn't work that way.
 

BuildingConceptsllc

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I'm sorry, but that just isn't the way it works. Like somebody above with an llc said, this is literally my business, and it doesn't work that way.
Yeah that was me. It did work that way "this time" and I suspect it will work that way in the future too. All kinds of foolishness is being played.
 

Choid

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Yeah that was me. It did work that way "this time" and I suspect it will work that way in the future too. All kinds of foolishness is being played.
Sometimes the fed is going to have similar goals as the "government" and sometimes it is not. During a crisis, it is more likely they will be in concert, but that is different from what you are saying. I don't think anybody thinks the fed should have been tight during the last year, because they should not have. But in the year before that, Trump was constantly jawboning them to be way looser than situations dictated, and Trumps supporters were accusing Powell of trying to sabotage Trump's election. Looking back on it, thank God he had some room to move.
 

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New home builders in Texas are seeing lumber packages go up 50 percent or more. They are letting buyers under contract walk away if they cant swing the surcharge

In my line of work, we see cost of electronics going up ten to twenty percent and delays of months on stuff we used to get in days.

On the plus side, some of our vendors just signed five year fixed deals for basic utility services so they could ensure cash flow for some of their fixed assets.
 

Hobo Hilton

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New home builders in Texas are seeing lumber packages go up 50 percent or more. They are letting buyers under contract walk away if they cant swing the surcharge

In my line of work, we see cost of electronics going up ten to twenty percent and delays of months on stuff we used to get in days.

On the plus side, some of our vendors just signed five year fixed deals for basic utility services so they could ensure cash flow for some of their fixed assets.
Yep, the 5 year fixed deals could be the double edged sword.... But, it does add some stability to financial projections for a few more years. Interesting concept.
 

BuildingConceptsllc

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Sometimes the fed is going to have similar goals as the "government" and sometimes it is not. During a crisis, it is more likely they will be in concert, but that is different from what you are saying. I don't think anybody thinks the fed should have been tight during the last year, because they should not have. But in the year before that, Trump was constantly jawboning them to be way looser than situations dictated, and Trumps supporters were accusing Powell of trying to sabotage Trump's election. Looking back on it, thank God he had some room to move.


Well I'm not going to continue this, but I'd encourage you to go seek out info of what actually happened instead of relying on what used to be the case and applying it here. I know you understand information, so go look (including Steve M's actions with the Fed) then we can pick this up once you've found some information. This isn't meant to be an insult at all btw. With respect.
 
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BuildingConceptsllc

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New home builders in Texas are seeing lumber packages go up 50 percent or more. They are letting buyers under contract walk away if they cant swing the surcharge

In my line of work, we see cost of electronics going up ten to twenty percent and delays of months on stuff we used to get in days.

On the plus side, some of our vendors just signed five year fixed deals for basic utility services so they could ensure cash flow for some of their fixed assets.

It's everywhere, and it's gone up way more than that in a years time. I'm shipping one house's package to a barn to prevent it happening further so we can store it until we are ready to frame. Absolutely crazy times but half of it is simply certain folks sticking it to us, and the other half is inflation + supply chain.
 
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Choid

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Well I'm not going to continue this, but I'd encourage you to go seek out info of what actually happened instead of relying on what used to be the case and applying it here. I know you understand information, so go look (including Steve M's actions with the Fed) then we can pick this up once you've found some information. This isn't meant to be an insult at all btw. With respect.
People on this site sure spend a lot of time telling me to learn about what "really" happened, instead of what I think happened. It's amazing I have gotten through to this point.
 

BuildingConceptsllc

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People on this site sure spend a lot of time telling me to learn about what "really" happened, instead of what I think happened. It's amazing I have gotten through to this point.

Every now and again, you might should listen then....
 

Choid

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Every now and again, you might should listen then....
Why? I mean that seriously? Why would I preference the "alternative information" I find in the politics section of a gun message board over information sources I've cultivated over decades working in the field, on top of years of academic work. If something seems worth investigating here, I do. I mean, I wouldn't call my lawyer and ask for load data or info on shoulder bumping. I feel the same way about info here that I do about the papers. Don't trust, but verify if interesting...
 

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What's gonna be hilarious is when Average Joe goes to sell a house that he bought with a 3.25% mortgage and then finds out how much less it's worth to a market that's borrowing at 8% or 10% or 12% or whatever one's crystal ball suggests that the rates might rebound to at some future date.

Might not happen at all, either; there is no law requiring that rates revert to the post-WWII mean. But if this does happen, the collective temper tantrum will be epic.
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I picked up some flooring last week at the warehouse of one of the largest flooring suppliers in my area. The guy's there said the warehouse was busing at the seams with inventory... Contractors are ordering, paying for it and letting it sit in a local ware house until it's needed... That is one way to make sure material is there when it is needed. Some warehouses are now charging storage. All of this adds to the cost of houses and commercial buildings.
I feel as though this is being done with everything. The wife and I have done the same on several products. People and companies are just loading up. It like the TP scarce has made us all nuts!

We are even doing it with projects at work....the backlog is crazy. Get in line!

The demand is so high to get shit done we can charge double what we did two years ago.
 

Alpine 338

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News reporting this morning nation wide chlorine shortages. No Summer pool parties, unless you like swimming in the green slime.

Lots of municipality water treatment plants, large resorts, large hotels, etc. all use large quantities of chlorine based chemicals.

Expect your city water bill to go up.
 

MK20

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I am considering buying a little bit of silver every paycheck. Maybe a small bag of 90% coins or a handful of ounces of bullion. Does anyone have a recommendation on who has the best prices?
 

Alpine 338

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I too would like to stock up on some 90% coins, but haven't had time to do much research.

For years, I've been throwing all the copper pennies that end up in my pocket in a jar. Have a few pounds of those so far. With the projected price of copper, a copper penny may be worth 5¢ here shortly.
 

W54/XM-388

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    I am considering buying a little bit of silver every paycheck. Maybe a small bag of 90% coins or a handful of ounces of bullion. Does anyone have a recommendation on who has the best prices?

    I might suggest at this point, you might be better served, if trying to protect against inflation, by making sure you have all your durable goods and household appliances, house and vehicle stuff in order. Updated and such so that you could survive not being able to afford replacement stuff for a very long time.

    Any hobby stuff you want and shooting stuff, if you can find it at great prices, add to your collection.

    All that stuff is probably going to inflate in price faster than the precious metals will.

    Silver and gold currently are near pretty high peaks and nearly historic spreads between paper and physical. I think there is a good chance for a bit of a correction in those prices over the next year or two and that would be a good time to get some.
     
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    MK20

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    Thanks. The reason I asked the question is that I have already taken care of the things you mentioned. I could run what I currently have for the next 20 to 40 years.
     

    NoDopes

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    Biden has also had historical high levels of spending and the national debt will likely keep the Fed from making any serious adjustments to interest rates. Stagflation.. and I still think gold will be a way to protect against the massive devaluation that is already in progress.
     
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    dallas34

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    It's everywhere, and it's gone up way more than that in a years time. I'm shipping one house's package to a barn to prevent it happening further so we can store it until we are ready to frame. Absolutely crazy times but half of it is simply certain folks sticking it to us, and the other half is inflation + supply chain.
    Just curious, if someone had space and could store a lumber house package, could you make a buck or two on the storage? Is it a commercial deal or a friend helping another out?

    On a different note, if you decide lumber is too high and you are just going to get a mill and saw your own, Cooks Sawmill is 62 weeks out for a delivered mill. Glad I have a local sawyer with a fair price.
     

    thestoicmarcusaurelius

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    Just curious, if someone had space and could store a lumber house package, could you make a buck or two on the storage? Is it a commercial deal or a friend helping another out?

    On a different note, if you decide lumber is too high and you are just going to get a mill and saw your own, Cooks Sawmill is 62 weeks out for a delivered mill. Glad I have a local sawyer with a fair price.
    That would be a fun project for personal use or maybe a rough cabin or something but I don't think most people are going to want to use green wood for a residential home compared to something that is kiln dried from a reputable manufacturer
     

    dallas34

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    That would be a fun project for personal use or maybe a rough cabin or something but I don't think most people are going to want to use green wood for a residential home compared to something that is kiln dried from a reputable manufacturer
    You are spot on for the home use. Home lumber has to be dried and stamped. I'm referring to the farmer that needs a barn or someone with land and standing timber that's sawing for the neighbors that are building sheds and chicken coops.

    I have a bout 10 acres of 25 year pines I need to thin. I was going to buy a mill and keep on the farm and go get a couple of trees a day and saw and sell.

    I am thinking about loading the big trailer with a bunch of sawed pine that I really don't need and heading to the farmers market to see if I can sell it. I will park between the turnip guy and the goat soap lady.
     

    BuildingConceptsllc

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    Just curious, if someone had space and could store a lumber house package, could you make a buck or two on the storage? Is it a commercial deal or a friend helping another out?

    On a different note, if you decide lumber is too high and you are just going to get a mill and saw your own, Cooks Sawmill is 62 weeks out for a delivered mill. Glad I have a local sawyer with a fair price.


    You definitely could if you'd done it months ago. It's so high now that it's assumed to be the top basically.
     

    BuildingConceptsllc

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    Yeah, but we thought that three months ago too... 😳! I cringe every Friday afternoon when the week’s Random Lengths report lands in my inbox... $1.40 / BF... oh my... would never have believed we’d see $0.90... Ugh!


    Yeah some did think that then, but it's already slowing down a lot because of prices so I don't think it will go up anymore to an extent you'd make money on storing it.
     

    Hobo Hilton

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    I am considering buying a little bit of silver every paycheck. Maybe a small bag of 90% coins or a handful of ounces of bullion. Does anyone have a recommendation on who has the best prices?
    Good idea..... Ignore what ever the "spot price" is going for. If you can find "junk silver" locally just suck it up and pay what ever they are asking..... #1 priority is to get it in your hand. With that said, you have world wide competition for silver as we speak. Supply and demand situation. Ignore the bench marks from the past... We are in uncharted waters for "metals"....
     
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    BuildingConceptsllc

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    Good idea..... Ignore what ever the "spot price" is going for. If you can find "junk silver" locally just suck it up and pay what ever they are asking..... #1 priority is to get it in your hand. With that said, you have world wide competition for silver as we speak. Supply and demand situation. Ignore the bench marks from the past... We are in uncharted waters for "metals"....


    When the premiums to actually get the silver in hand are this size, with a spot price that's very middle of the road, you know somethings up...
     

    W54/XM-388

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    When the premiums to actually get the silver in hand are this size, with a spot price that's very middle of the road, you know somethings up...

    a few years ago when paper silver was close to the $11 or so mark, physical pretty much was stuck at about $20 to $25 minimum.
     

    BuildingConceptsllc

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    a few years ago when paper silver was close to the $11 or so mark, physical pretty much was stuck at about $20 to $25 minimum.

    Yeah they play their games with paper, but countries around the world are. Circling their asset wagons... they can manipulate and hold it down, but they can't hold it down completely, and when a few countries start pulling in the opposite direction things will get interesting.
     
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    SilentStalkr

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    All I know is a year or so ago I found myself without a job after some layoffs at a company I had been at for a long time. Luckily I was picked up by another in a matter of weeks. Of course, when the salary thing came up I was a bit worried cause I needed the work and I actually low balled myself. Lucky for me they came back with a reasonable offer that was a wee bit more than I was expecting. However, this was on the premise that I would be working from home.

    Before then wages had been pretty stagnant and still are for the most part. I was ok with my salary while working from home or a few days a week from home but I live an hour away each way from my office. With now having to go in everyday and gas going up and the price of goods going up and so on, you can see my issue with my current salary. All was well when gas was reasonable, cars were somewhat reasonable and plentiful, bacon wasn’t $12 a pack and so on, but now we are getting into a situation where it’s just not going to work at my current pay rate.

    See everyone can adjust their pricing and so forth except the guy at the end of the line, aKA the workers/consumers. We are just left with figuring it out which generally means we either have to watch spending which ain’t going to help the economy, or we have to work more jobs which ain’t going to help the family unit, not that you can find much extra right now anyways with the supply chains being fucked up and so on. So what is going to happen? I don’t see any good way out of our situation. People are going to get where they just can’t make things work and the entire economy is going to crash at some point as a result.

    Everyone can raise their prices except the common man just earning a living. I mean if you in biz for yourself you can raise your pricing, but if you work for someone else even if they raise their pricing that rarely trickles down to the employee. Gov don’t care cause they will just raise taxes, farmers raise their price to meet their needs and then the grocery store raises theirs to offset and so on. You get the deal, but what does the regular consumer do when he doesn’t get any wage increase? There are only so many possibilities and none of them are good.
     
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