The Economy

Probably good news.

The economy is going to have to fall apart pretty fast to drop from a 4.9% growth rate into a recession by the November election. The increase in interest rates has so far not slowed down the economy.

 

I almost wonder if the naysayers on the economy are the people who typically make most of their money when interests rates are super-low, like Wall Street - and who seem to have an outsized influence on what people are supposed to think about the economy. Obviously, inflation still sucks - not going to argue - but the people who make their money of cheap Fed Rate loans seem to be moaning more about the economy than Joe Sixpack. You look at hiring sectors, hospitality, restaurants, entertainment, people are still spending on non-essentials

 

Reality vs. perception aka the Fox News effect.

https://x.com/alecstapp/status/1717874461670613453?s=46&t=wVPJyeunUA-4G1zuWq69ug

 

Our orders in medical have suddenly tanked. We went from being a year behind to full inventory. Just a snapshot of possible future problems.

It’s largely because PPP funds have finally dried up, but it went from an issue with dental to all of medical. Luckily we’re family owned and sitting on a pile of cash, so we’ll use the downtime to do maintenance projects and get a new facility built.

But things are slowing. I think the recession will come early winter, but I thought that last year, too.

 

My dad’s old dealership just posted about receiving a few 2024 Ram 1500 TRX Crew Cab 4x4s. Base price is $95,490. The one they showcased is stickered at $117,535.
That’s more than we gave for our 1,700 sq-foot house in a historic district 23 years ago.

 

Anyone else notice gas prices have taken a dive? Surprising given the tumult in the Middle East - they usually just reflexively jack it up when conflict breaks out.

 

Do your company only work with medical?

 

That's why dealers are stuck with a whole bunch of pickups they're having a hard time moving. $90k + for a pickup truck is nuts.

 

Pickups have been so hot that the Detroit Three figured they could get away with insane markups.

 

I have built and priced a 2024 Ford Ranger XLT. That's the number two of four standard packages.
Base price is $39,490.
What I've built is $42,795 minus incentives.

Of course Ford won't actually let you print and submit the build sheet yet.
Toyota basically only has a couple of press releases on the '24 Tacomas. No pricing, Nothing.

 

WeWork … somewhere else

WeWork shares sink on reports of imminent plans for bankruptcy filing