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The housing-and-renovation boom drove insatiable demand for lumber, even as the pandemic idled mills that had already been slowed by an anemic construction sector since the 2008 financial crisis. Lumber futures surged to unprecedented heights, peaking at more than $1,600 per thousand board feet in early May.But since then, the prices of those same plywood sheets and pressure-treated planks have tumbled, as mills restarted or ramped up production and some customers put off their purchases until prices came down.It’s a dance of supply and demand that has reassured many experts and the Federal Reserve in their belief that painful price spikes for everything from airline tickets to used cars will abate as the economy gets back to normal.
Key paragraph:
“Many of the extreme price spikes we’ve seen in recent months are likely to reverse for Econ 101 reasons,” said Jan Hatzius, chief economist at Goldman Sachs.
Good ol' "Econ 101." The rock against which ideology and wishful thinking smashes into bits.
You forgot the linkThe housing-and-renovation boom drove insatiable demand for lumber, even as the pandemic idled mills that had already been slowed by an anemic construction sector since the 2008 financial crisis. Lumber futures surged to unprecedented heights, peaking at more than $1,600 per thousand board feet in early May.But since then, the prices of those same plywood sheets and pressure-treated planks have tumbled, as mills restarted or ramped up production and some customers put off their purchases until prices came down.It’s a dance of supply and demand that has reassured many experts and the Federal Reserve in their belief that painful price spikes for everything from airline tickets to used cars will abate as the economy gets back to normal.
Key paragraph:
“Many of the extreme price spikes we’ve seen in recent months are likely to reverse for Econ 101 reasons,” said Jan Hatzius, chief economist at Goldman Sachs.
Good ol' "Econ 101." The rock against which ideology and wishful thinking smashes into bits.
Yet I guarantee Foxnews will be moaning about “Biden’s massive inflation” for the next four years- if it exists or not.The housing-and-renovation boom drove insatiable demand for lumber, even as the pandemic idled mills that had already been slowed by an anemic construction sector since the 2008 financial crisis. Lumber futures surged to unprecedented heights, peaking at more than $1,600 per thousand board feet in early May.But since then, the prices of those same plywood sheets and pressure-treated planks have tumbled, as mills restarted or ramped up production and some customers put off their purchases until prices came down.It’s a dance of supply and demand that has reassured many experts and the Federal Reserve in their belief that painful price spikes for everything from airline tickets to used cars will abate as the economy gets back to normal.
Key paragraph:
“Many of the extreme price spikes we’ve seen in recent months are likely to reverse for Econ 101 reasons,” said Jan Hatzius, chief economist at Goldman Sachs.
Good ol' "Econ 101." The rock against which ideology and wishful thinking smashes into bits.
Where have we seen the jump in lumber prices impact the inflation numbers?The housing-and-renovation boom drove insatiable demand for lumber, even as the pandemic idled mills that had already been slowed by an anemic construction sector since the 2008 financial crisis. Lumber futures surged to unprecedented heights, peaking at more than $1,600 per thousand board feet in early May.But since then, the prices of those same plywood sheets and pressure-treated planks have tumbled, as mills restarted or ramped up production and some customers put off their purchases until prices came down.It’s a dance of supply and demand that has reassured many experts and the Federal Reserve in their belief that painful price spikes for everything from airline tickets to used cars will abate as the economy gets back to normal.
Key paragraph:
“Many of the extreme price spikes we’ve seen in recent months are likely to reverse for Econ 101 reasons,” said Jan Hatzius, chief economist at Goldman Sachs.
Good ol' "Econ 101." The rock against which ideology and wishful thinking smashes into bits.
Yet I guarantee Foxnews will be moaning about “Biden’s massive inflation” for the next four years- if it exists or not.
You believe the Fed signaled as much last week? By suggesting they may increase interest rates in...2023?Where have we seen the jump in lumber prices impact the inflation numbers?
Yes there is a jump due to the economy reopening but there are other pulls on inflation that are less "transitory". I believe the Fed signaled as much last week.
You believe the Fed signaled as much last week? By suggesting they may increase interest rates in...2023?
Wow. If that's not a sign of sheer terror, what is?
The housing-and-renovation boom drove insatiable demand for lumber, even as the pandemic idled mills that had already been slowed by an anemic construction sector since the 2008 financial crisis. Lumber futures surged to unprecedented heights, peaking at more than $1,600 per thousand board feet in early May.But since then, the prices of those same plywood sheets and pressure-treated planks have tumbled, as mills restarted or ramped up production and some customers put off their purchases until prices came down.It’s a dance of supply and demand that has reassured many experts and the Federal Reserve in their belief that painful price spikes for everything from airline tickets to used cars will abate as the economy gets back to normal.
Key paragraph:
“Many of the extreme price spikes we’ve seen in recent months are likely to reverse for Econ 101 reasons,” said Jan Hatzius, chief economist at Goldman Sachs.
Good ol' "Econ 101." The rock against which ideology and wishful thinking smashes into bits.
Biden is way ahead of you. Because, you know, tariffs that Americans pay hurts Canada... somehow.Time to put another set of tariffs on Canadian lumber (because it is "subsidized" [due to the fact that the Canadian lumber companies only have to pay for the trees that they cut {which means that they pay from now until doomsday <thereby providing a steady revenue stream to the people who own the land/trees>} and, unlike American lumber companies, don't have to buy the land that the trees grow on {which means that they only pay once <thereby providing a revenue stream that dries up almost immediately>}] in order to "stabilize the market".
No kidding. And it's in the face of this uncertainty the Fed has to make decisions, including not to overreact to temporary price increases in some areas. Those decisions is what this and similar threads are about.The reality is NO ONE KNOWS what inflation will do. That certainly includes you and I.
No kidding. And it's in the face of this uncertainty the Fed has to make decisions, including not to overreact to temporary price increases in some areas. Those decisions is what this and similar threads are about.
Jerome can't come to the phone right now, so this will have to do:Powell has not explained by what he means as temporary. Perhaps you can take a shot.
Actually, he has. At a hearing before Congress, he said these supply issues would resolve themselves in a few months.Powell has not explained by what he means as temporary.
Biden is way ahead of you. Because, you know, tariffs that Americans pay hurts Canada... somehow.
Biden administration could double Canadian lumber tariffs even as wood and construction costs soar
The U.S. Commerce Department has proposed doubling the tariff on Canadian lumber from 9% to 18%—a prospect that dismays homebuilders.fortune.com
Unsurprised, I remain.The housing-and-renovation boom drove insatiable demand for lumber, even as the pandemic idled mills that had already been slowed by an anemic construction sector since the 2008 financial crisis. Lumber futures surged to unprecedented heights, peaking at more than $1,600 per thousand board feet in early May.But since then, the prices of those same plywood sheets and pressure-treated planks have tumbled, as mills restarted or ramped up production and some customers put off their purchases until prices came down.It’s a dance of supply and demand that has reassured many experts and the Federal Reserve in their belief that painful price spikes for everything from airline tickets to used cars will abate as the economy gets back to normal.
Key paragraph:
“Many of the extreme price spikes we’ve seen in recent months are likely to reverse for Econ 101 reasons,” said Jan Hatzius, chief economist at Goldman Sachs.
Good ol' "Econ 101." The rock against which ideology and wishful thinking smashes into bits.
Your link says they are “likely” to decline. Well, duh. Of course they will decline at some point vThe housing-and-renovation boom drove insatiable demand for lumber, even as the pandemic idled mills that had already been slowed by an anemic construction sector since the 2008 financial crisis. Lumber futures surged to unprecedented heights, peaking at more than $1,600 per thousand board feet in early May.But since then, the prices of those same plywood sheets and pressure-treated planks have tumbled, as mills restarted or ramped up production and some customers put off their purchases until prices came down.It’s a dance of supply and demand that has reassured many experts and the Federal Reserve in their belief that painful price spikes for everything from airline tickets to used cars will abate as the economy gets back to normal.
Key paragraph:
“Many of the extreme price spikes we’ve seen in recent months are likely to reverse for Econ 101 reasons,” said Jan Hatzius, chief economist at Goldman Sachs.
Good ol' "Econ 101." The rock against which ideology and wishful thinking smashes into bits.
Inflation has never ever happened before ever in the history of man..The reality is NO ONE KNOWS what inflation will do. That certainly includes you and I.
Inflation has never ever happened before ever in the history of man..
What will we do
No. Eventually the supply chain will be restored and the markets will adjust to this wild spending and calm down. We can predict it will happen. We can’t predict when.The reality is NO ONE KNOWS what inflation will do. That certainly includes you and I.
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