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renok_archnmy t1_j6jyols wrote

Reply to comment by Trpdoc in Recession concerns overtake inflation concerns by Infamous_Sympathy_91

Underwriters carry insurance against loan default. They can write off the losses, make a claim, recoup funds, hold them in suspense type GLs as various losses for accounting trickery over the years.

Having a loan go bad for a bank isn’t a black and white affair of money lost forever. They get it back.

It happens all day every day.

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Trpdoc t1_j6jz7y6 wrote

That’s what I’m saying then. Nothing is going to change, prices aren’t coming back down no fucking chance.

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renok_archnmy t1_j6k1b0l wrote

No they aren’t. I don’t get the feeling anyone thinks they are (except for some of the children on here who only started paying attention during COVID).

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MoneyForPussy t1_j6kk95j wrote

i think it's a little more complex...seems that as prices of essential goods/services continue to rise, people will tend to compensate by purchasing less non-essential stuffs (or none at all)

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renok_archnmy t1_j6km3k8 wrote

This does happen. But often the cost to produce a luxury good is not far off from a standard one. Eventually demand drives up register price of regular products too. It’s like in the 90s Airwalks were the hot shit for a minute and vans were practically knockoff. Tables can turn. My dad bought a brand spanking new bare bones f150 in the 90s for $9000. Now pickup trucks are minimum $40k and have all sorts of amenities people back then didn’t even want in a work vehicle. Coupes were once the sport cars for people who didn’t need a full fledged sports car (or couldn’t afford one). Now people are buying high horsepower sedans and treating them like sports coupes.

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Trpdoc t1_j6knbrr wrote

Airwalks and eggs/chicken are different bro.

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MoneyForPussy t1_j6kpi01 wrote

i would say prices of new cars have mostly remained fairly flat when compared to wages though, i remember my old man paid $15k for a manual trans 2000 Honda civic ex coupe brand new (which i would definitely not consider to be a sports car even though insurance classified it that way)

i saw a 2023 nissan the other day (also 5 speed manual trans) but while it was the base model sedan, i would bet the car is at least 10 times nicer than that civic was - for only $15k as well, which would probably be about 1/3 the price of that civic when adjusted for inflation

many folks would take that over a $50k camry even if it means they have to learn to drive a stick shift. but from what i understand, many car dealers are hiking prices in order to produce less cars & manage less inventory but maintain the same bottom line, and maybe that makes sense if the shift to EV accelerates, or maybe they will fall short. anyone's guess i suppose

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renok_archnmy t1_j6ktwve wrote

I was just trying to make the point that what is a luxury hood today may not be in years to come. What might be cheap basic thing today may become a luxury good tomorrow.

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MoneyForPussy t1_j6kuf6a wrote

i definitely would not have foreseen n64 games selling for $500-1k that's for sure

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renok_archnmy t1_j6kv4xw wrote

MTG cards, comic cards from the 80s, my wrecked gen 1 turbo 4g63 with no crank walk eclipse and manual 5 speed, so many things mooned after I sold them.

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