Going back to previous prices is never the goal - neither now nor in prior periods of inflation. In the early 1980s the fed raises rates to stop inflation. In say, 1985 no one was calling for prolonged deflation to bring prices back to 1975 levels. Once you bring inflation under control prices stabilize around the new equilibrium.
We never rolled back the 100% inflation that occurred between 1975 and 1985. But things didn’t keep sucking, the economy adjusted to the new normal.
Yeah and the result was all areas in the manufacturing/industrial areas turning to drugs to deal with their destitute existence if they didn’t have the means to leave. With new legalization policies this will prob intensify in a level we have never seen before. Grim forcast. Sure there will be people that endure and overcome but plenty won’t and we don’t have the resources to support those that can’t support themselves at current price levels.
Yes I’m a libertarian but don’t agree with legalization of everything for everyone. One policy of libertarianism that doesn’t make sense to me. Education is the key still, not the drug war. Tough decisions will need to be made
lower labor costs = higher future profits.
The cracks are forming….can’t wait for this hustle to go up in flames. Was a great idea to rent out your house when you’re not using it, or turning an in-law suite into a rental, but it went too far and now the market is over saturated.
Love the one comment, “never had a hotel greet me with a chores list, then charge me $300 for cleaning” so true!
As soon as this mass movement started it was destined to end. And all these people flaunting their net income from their Airbnb properties…reminds me of the crypto bros during their infancy.
Unless traveling with a large group, I would take a hotel over an Airbnb 9 times out of 10.
Some Airbnb hosts just got too greedy. Do I feel sorry for folks with multiple properties who over leveraged themselves in the hopes of making lots of $$$? Nope.
Great topic for discussion as it is interesting how Airbnb has evolved over the years. As for the success/failure, I would say that I think it is still market specific. I had just booked our annual February “winter escape” trip, and we had chosen to return to Maui. The hotel/motel/resorts rates are sky HIGH, as are the vehicle rentals, unsurprisingly. In a market like that, the private rentals are still very much in demand. Obviously much of the pricing can be attributed to the China-flu recovery (staff shortages, travel demand is increasing, products/services are more expensive, etc.). It will be interesting to see how those healthy markets (in terms of private rentals, anyway) do once the dust settles.
I bought a small amount of CVNA today just for fun. I really dont care what happens with it (thats only a small lie…LOL), but it will provide some entertainment to watch the dumpster fire either burn itself out, or catch the building the dumpster is parked behind on fire too.
Where oh where on this historical curve might it end…
Many people are transitioning back to hotels. Airbnb’s complete lack of customer service is the main driver behind why people stopped using it. They’ve had limited hiring since Covid layoffs. Unlikely this stock/company will recover
Not to mention all the zoning laws they violated. Again changing the goalposts for corporations with endless venture capital funding. Just like Uber and Lyft, which I live by the way, but that wasn’t fair to taxis the way it was implemented.
I think they just had their most profitable quarter ever. They’re just down with the rest of the tech space. There’s more listing then ever so even if people limit spending they should still be printing money for the properties in markets that are still booming. One issue is a lot of cities are banning them which is ultimately a good thing for quality of life. I wouldn’t want to live next to airbnbs, but I would like the appreciation they bring to the neighborhood, double edged sword.
They really provide nothing but a website platform so overhead should be extremely low. But like all these tech giants they waste investor money on rediculousness
I believe we have 57 states, sir.
How true is this? I know its bad out there but I didnt think it was this bad. If its already this bad, the next rate hikes between now and spring 2023 will really hurt
Yeah when you have headlines without context it does sound bad.
Mass layoffs… yeah but in a labor market where those people will find work pretty quick, as opposed to past recessions. Many companies are still desperate for workers.
Used car prices are still at historic highs.
Re: credit cards: Average Credit Card Debt Statistics, Historical Balances & More Charts are pretty flat overtime. No big spike.
Understandable but a sign that higher rates are doing what we expected them to do. Housing sector may have real pain for a bit but it’s one that always bounces back.
and as for Crypto. You know what happens to speculative bubbles historically…
If it’s “bad” then there will be less hikes if any. The market had a great day when they saw that there may be moderation. No doubt there could be some pain but there are some positive differences this time around vs. 2008-9 as an example.
Everything there looks accurate to me
That black background makes it really scarier than the same text on green.
Just announced Amazon is now planning to layoff 10,000 employees starting this week. This time of year Amazon normally would be gearing up for Holiday season sales.
Largest cuts in companies history. Kinda odd all these layoff announcements are happening after the midterms.
I haven’t seen which teams are getting cut yet, but keep in mind that these are going to hit corp more than the warehouses. Also take into perspective that Amazon employs around 1M people. Granted, most of those are warehouse workers.
Won’t go too deep down the rabbit hole, but I think the 10k number was just a token gesture to appease the markets. Amazon has forced attrition numbers for corp, whether they’re hiring or not, a certain percentage is shown the door. I suspect they’ll freeze hiring and dial up the attrition goal a bit and squeeze more people out without needing to pay much severance. Lots of random divisions inside Amazon don’t make any money and haven’t made money for years.
I wish I could make literally no money for years while destroying all my competitors only to raise pricing once there’s no competition. quite the playbook. Disgusting business model…
Oh and have the taxpayer subsidize all my logistics.
Worked for the Waltons, didn’t it?
You telling me my tulip retirement plan isn’t gonna work out?
It’s almost like we have seen this story before. Yes, when the economy cools the cuts stop.
