Construction costs are currently skyrocketing

  • Erstellt am 2021-04-23 10:46:58

mayglow

2022-06-28 11:07:11
  • #1

Why? And why are "saving" and "investing" equated here? (Isn't it actually a problem in Japan, for example, that little is invested?) And why does this lead to low interest rates? And why is "the situation in the USA different"? Well, to some extent I do have thoughts on why some things could be this way, others are really more like "huh?". Overall, this is too much "That's obviously how it is. That's how it relates. Period." I can't necessarily disagree, I simply lack knowledge here, but I also have the feeling that in some cases too strong causal relationships are assumed when there are actually some other factors involved. (Or at least it seems that way in the explanation.)

It has already been established many times that other things (war, supply bottlenecks, etc.) currently have a much stronger influence (and yes, I have noticed that, and I am not disputing it here either) – but suddenly we are no longer at "because we have A, B will happen" but rather at "because we have A, and I assume that X and Y will pass, and Z will remain, B will tend to happen in the long term."
 

In der Ruine

2022-06-28 11:27:58
  • #2

Small materials for €250 and additionally measuring 8 cents for ferrules. Just my humor.
 

Tamstar

2022-06-28 11:30:39
  • #3
That was the quoted item, as you can see in the total, it has not been invoiced.
 

In der Ruine

2022-06-28 12:31:49
  • #4
True, now that you mention it. I should have read properly first and then posted. I didn't see everything clearly on my phone.
 

chand1986

2022-06-28 12:43:22
  • #5
The central bank sets the interest rate as an investment incentive. The lower it is, the higher the incentive. In Japan, relatively little is invested BECAUSE saving takes place. Investments are made at the macroeconomic level through loans and run ahead of savings in money. That’s how our system is structured. Banks don’t lend the money of their savers.

America has a super-flexible labor market (hire & fire, extremely mobile population) and is therefore already at the beginning of a wage-price spiral, since there is now almost full employment. The government’s growth impulses in response to Corona really generated momentum. The FED not only has additional mandates compared to the ECB but also faces a different task. So it must act differently in comparison -> more interest rate hikes.

This leads to an appreciation of the dollar against the euro, which makes our energy purchases even more expensive – a dilemma. If the ECB follows with interest rates to dampen this, it risks a recession. Now there are camps that oppose each other: a recession is to be preferred over inflation or exactly the opposite. However, this always assumes inflation from the self-reinforcing wage-price spiral, not from external supply shocks.

At the moment, building is quite problematic from every perspective – little material, expensive, interest rates are rising. This will balance out when demand collapses – but then the recessive character becomes apparent.
 

i_b_n_a_n

2022-06-28 12:51:04
  • #6

a very nicely succinctly formulated sentence that in my opinion sums up many things correctly ... unfortunately :eek:
But what is the outlook of your crystal ball for example for 2027 (with the ECB continuing to act chaotically)?
 

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