Phoenix Topping the List in Inflation (apartments, renters, to live)

[KurtAZ]

Originally Posted by Williamhbonney

You basically prove my point. If it wouldn't pass emissions again today I'd say so. I've got better things to do than waste my time and someone else's with deceptive bs. Maybe that's why I haven't sold it, I'm not on the same level of thinking as the Craigslist crackheads.

Glad you found a car and know how to work on it. Most don't know how anymore.

Oh believe me...there are some...shady folks out there. Looked at one vehicle that had 140k miles on it (supposedly). Wouldn't send me the VIN, wouldn't set up an appointment to look at it so my wife tried contacting him. Boom, appt in an hour to look at it. Got to the guys house and this vehicle had obviously had a hard 140k miles. Ran a CarFax while we were standing there and it came back with a bonded title and at last inspection...280k miles. So there is some hesitancy with sub $3k vehicles but maybe try OfferUp? I have had better luck there than Craigslist.

There are too many illegal dealer folks out there running around.

[Ponderosa]

We did it again! Phoenix again had the highest rate in the US for inflation in today's report coming in at 12.3% year over year. Finally "The Valley" is in first in something. People are paying a premium to live here. Hard to figure.

https://www.azcentral.com/story/mone...n/10046785002/

[singlegirlinaz]

Many people who yell the loudest about inflation are good at spending, horrible at saving.

Their driving habits tell a big part of the story. They won't slow down to save gas, won't ride a bus, won't trade their guzzler for a fuel-efficient car, won't drive less.

They blame the president, gas stations and everyone else on earth other than themselves. If they refuse to conserve or downsize they have no business complaining about the cost of things.

Gas prices are still a bargain in America compared to other countries.

[Williamhbonney]

Originally Posted by singlegirlinaz

Many people who yell the loudest about inflation are good at spending, horrible at saving.

Their driving habits tell a big part of the story. They won't slow down to save gas, won't ride a bus, won't trade their guzzler for a fuel-efficient car, won't drive less.

They blame the president, gas stations and everyone else on earth other than themselves. If they refuse to conserve or downsize they have no business complaining about the cost of things.

Gas prices are still a bargain in America compared to other countries.

Newsflash: you're the same exact version of that person, just from 180 degrees to the other extreme.

[DetroitN8V]

Originally Posted by Williamhbonney

Newsflash: you're the same exact version of that person, just from 180 degrees to the other extreme.

Oh so it’s now extreme to be frugal and spend and save within one’s means? What exactly about her comment do you disagree with? It seems like a weird post.

[MN-Born-n-Raised]

Originally Posted by singlegirlinaz

Many people who yell the loudest about inflation are good at spending, horrible at saving.

Their driving habits tell a big part of the story. They won't slow down to save gas, won't ride a bus, won't trade their guzzler for a fuel-efficient car, won't drive less.

They blame the president, gas stations and everyone else on earth other than themselves. If they refuse to conserve or downsize they have no business complaining about the cost of things.

Gas prices are still a bargain in America compared to other countries.

Most European countries tack on $4 a gallon in tax. In AZ (fed and local taxes), it's $0.37 cents total gas tax. If I was at the helm, I would tack on a massive surcharge like Europe. Whatever additional $'s are collected I could drop income taxes. So our out-of-pocket is the same. The ONLY way most people conserve is with their pocketbooks. I'm no different.

Anecdotally speaking, yes, people bitching about gas prices the loudest are using the most gas. The last time gas spiked to over $4 a gallon (2008 era if I remember), people were waiting in line for a Prius and refusing to buy gas guzzlers. Big SUVs and pickups were sitting on dealer lots. I remember staring at my local MN Costco gas line and barely seeing a truck around 2008. Normally, 80% were guzzlers. So people assume gas is going to come back down to "normal". So they are buying more guzzlers. Plus, because of the chip shortages, manufacturers are only producing higher profit vehicles which normally mean guzzlers.

Personally, I want metal wrapped around me and therefore, I buy a safer vehicle. I'm not driving a Prius. My next purchase will be a big redesigned Lexus hybrid rated at 30 MPG city. And no, I won't drive less, I won't slow down, and certainly, I won't take the bus. But I will buy a more efficient vehicle.

There are two ways to look at budgets. I frame your concern differently. My problem isn't inflation or that I'm spending too much. Rather in a financial crunch, my problem is that I am not making enough money so I work harder and smarter. Those who only focus on frugality and how to stretch out the same amount of bean$ they make are missing out on the big picture. Redirect your energies to make more $. Normally, that means having your own business or even a side gig. Personally, I enjoy the game of saving money. But it's much better math to learn how to earn more than worrying about saving every nickel. And therefore, while I don't like $5/ gallon gas, it hasn't affected me other than inflation which is eroding my net worth. Solution: go make some more money to offset the 9% annual loss. But someone's net worth loss is harder to get back (you need to gamble called the stock market to win it back). YMMV.

[Potential_Landlord]

I feel like inflation is going to turn into deflation and recession very fast. Already our RE market is turning faster than I have ever seen.

[MN-Born-n-Raised]

Originally Posted by Potential_Landlord

I feel like inflation is going to turn into deflation and recession very fast. Already our RE market is turning faster than I have ever seen.

The "mood" for everything other than RE changed back. People were shocked by the stock market, bad news, and the war. Now, they acclimated. The new norm is the Dow of around 31K. Job security is stable too. After a 6 weeks worth of pause, people are back to buying like drunken sailors. Call a car dealership, boat dealership, etc. Sure, everyone is forecasting lower margins and lower sales. But the consumer isn't listening. Which means, expect another rate hike soon!

[Ponderosa]

Originally Posted by Potential_Landlord

I feel like inflation is going to turn into deflation and recession very fast. Already our RE market is turning faster than I have ever seen.

Ditto. The PPI today gave a real indication that we are headed that way. Although it was high 90% of it was energy which is rapidly falling but not reflected. The core month over month increase was only about half of what analysts predicted and if you look at the carnage in commodity prices in the last two weeks along with expected rate increases, it is hard to ignore the possibility of a serious recession on the horizon. It is already underway in the Phoenix housing market. But the real estate people will be the last to admit it.

[Potential_Landlord]

Originally Posted by Ponderosa

Ditto. The PPI today gave a real indication that we are headed that way. Although it was high 90% of it was energy which is rapidly falling but not reflected. The core month over month increase was only about half of what analysts predicted and if you look at the carnage in commodity prices in the last two weeks along with expected rate increases, it is hard to ignore the possibility of a serious recession on the horizon. It is already underway in the Phoenix housing market. But the real estate people will be the last to admit it.

Yeah the inflation shock of the last year totally tanked consumer confidence and spending to a degree that we haven't seen in decades (velocity of change). Now we will get reverse wealth-effect from declining asset prices (stocks, RE, 401k, ...) on top and we have a toxic brew at hand. I think we are currently seeing a historic turn, historic velocity from boom to bust. Will it be a new GFC like 2008? No, I don't think so. It's mostly the velocity of the turn that's so extraordinary. I completely understand though that hardly anyone remembers 9% inflation and that's quite a shock to economic confidence (or 12.3% in Phoenix I understand). I know everyone's favorite culprit is the FED, but IMO it's more the psychology of the inflation shock that tanks consumer spending and pulls us into recession. Kind of like a self-fulfilling prophecy. And here in Phoenix above all other places, who isn't shocked by rent and house price inflation over the last few years?