Ummm, Price Collapse?

Anyone notice, at least in Phoenix area, people dropping the price of toys for sale?

Seen alot of sxs especially being dropped 20-30%

 

The moment we’ve all been waiting for…

 

I’m hoping for the 50% drop lol!

 

Just waiting on boats. They will likely correct after Labor day going into "winter".

 

No doubt my friend

 

I don't disagree. Everytime my wife and I have purchased a home the mortgage lenders tried to convince us we were not getting a big enough mortgage. Fuck that.

 

Well since there is no more water in the Midwest I'm sure boats will be on the cheap.

Last I saw Lake Mead was at or below 50% and the Hover Dam is close to not having the water level necessary to generate power.

 

So… we’re back to off-road toys?

 

Boat, boat, boat, boat!!!!!

 

It and Powell have both been hit hard. Latest water conservation effort has less output at Glen Canyon (unsure at Hoover). Powell has risen 5.33ft since May 21st, currently at 26.45% full pool.

Local lakes are pretty decently stocked, just dont go during the weekends.

* mead's 28.85% full pool and down 2.79ft since May21st.

 

Off and on road toys.

Shopping for an E46 M3 as well as a Yamaha 255XD.

Prices for the M3 have hit stupid money status. New boat is out of stock, basically unobtainable.

 

The banks will give you enough rope to hang yourself, that's for damn sure.

 

Got a 4 year old travel trailer that's had some upgrades done for less than half what the dealers want for a new one.

 

"Given that commuting is the single most common reason Americans drive, we would have thought gas consumption would still be showing positive comps to last year," DataTrek writes. "Office occupancy was barely 20% at this point last year and is double that now (43%). Lower gasoline consumption is therefore a troubling sign about overall consumer spending patterns."

Means no one wants to fill their boat up either nor the truck to tow their toys....

@1UP

https://finance.yahoo.com/news/gas-prices-health-of-consumers-111315404.html

 

Nope. Saw gas has hit all all time recorded of 9.60 a gallon out in CA.

That's a cool G for a 100 gallon tank.

 

Or they are forgoing work at this point, saying fkuc it, and going to just enjoy the toys while the boat sinks lol

 

That would be one way to do it.

 

I read somewhere that several large gas stations in WA state were in the process of revamping the face of their gas pumps... It is my understanding that they are adding space for another "digit" in the price column. Apparently, most pumps are designed to accommodate pricing up to 9.999/gal. So, now they are preparing to be able to accommodate pricing over $10/gal... Get ready folks, it coming!!!

 

Thats true. 15$ gas might hurt the truck market.

 

For the smarter ppl in this thread, I tried to find it online and can't source a number.

Hypothetically, how high can gas go before it is believed to be unsustainable and causes an economic collapse?

 

Try $25/gal, but at that point, we have bigger issues to worry about than just gas price.

 

As high as people are willing to pay for it?

 

Not sure their source but someone told me to expect "the poor to starve and the rich to pay more".

 

I meant it to the point that Amazon free shipping stops . But really what price point makes goods and services stop being shipped, commuting to work no longer affordable etc.

What's that theoretical number.

 

I'm fairly certain I don't qualify to answer but I'll throw my $.02 out. The first thing we'll see is demand destruction to hopefully slow the increase. People will drive less and maybe drive their more economical cars more often. I know for certain that some are already cancelling vacation travel because of cost.

Longer term maybe carpool or rideshare, use more public transportation. Even longer term start buying more efficient vehicles. As long big SUVs and trucks are flying off the lots there's still a lot of room for prices to run up.

If producers and midstream providers determine they can invest the billions in capital needed and navigate the regulatory hurdles to increase production and make a reasonable return without the rug being pulled out from under them that will eventually happen.

It's gonna be a bumpy ride.

 

I read somewhere that demand destruction has already started.

The rest of what your saying makes sense.

 

I sure don’t see folks driving less. My kids use public transportation to get from our house to the college campus 15 miles away. Blows my mind how few folks use it and how many one person vehicles I see on the road at rush hour.

Since hunting season ended in January, I’ve put all of 2000 miles on my truck. 400 of those were two bear hunting trips in April.

Folks need to evaluate their driving habits.

 

It has. But people place transportation high on their list of budget priorities. We hate the inconvenience of carpooling, public transport, etc. That makes gasoline relatively inelastic, which means that it takes a lot of price pain to make appreciable changes in consumer behavior.

 

Also, most people don't realize how complicated it's to increase production. In addition to all that goes into ramping up and producing the oil and gas, there's massive amounts of infrastructure needed for gathering, fractionation, and transportation of the products.

When Covid hit and demand plummeted, my previous employer and others cancelled billions of dollars in energy realted long term capital projects.