Quote:
Originally Posted by bizaro86
If wages are keeping up it is 100% rational to do as much spending as you can as soon as you can. If that 30k car is going to be 34k next year, buying it now makes sense even if rates are high.
Once enough people start doing that it effectively increases the supply of money because the velocity of money is much higher.
|
I guess for any large purchase that requires saving vs. things bought out of a monthly paycheque that makes total sense. Buy as quick as you can, as your savings will get inflated away, even though you'll be making more in the future.
In the scenario wages aren't keeping up, doesn't affordability kick in and people just can't buy stuff anymore and you start to get supply increases and price drops?