WoW another eye opener from an interview with Machinery Pete:
used auction prices soaring and Peterson
told Bloomberg that the used tractor market is the most active he’s seen in his 32-year career
Sounds like "if" you can get a new tractor it will make more sense to buy it and finance it, than bidding on used equipment.
Inflation, a labor strike, and the lack of repairability on newer models is a perfect storm that’s sent prices surging.
www.vice.com
That was a great article, but in my opinion, it seems to be a bit on the exaggerated side with the statement of “inability to repair late model tractors”.
I can’t believe that any tractor manufacturer would enter into this kind of a negative commitment relationship with it’s dealer network.
Ive been waiting on a replacement hood for my Kubota for about 6 months. Ok.. yes it’s not a priority item so I understand. But I can’t believe that if there was an issue that prevented a late model tractor from working fir someone that Kubota would put that part into a new machine over sending out a part to be used for repairs…..
I believe something is amiss in that article.
Granted that the market demand is extremely high, and prices will go up due to a higher demand and lower supply… that’s a given.
But what freaks me out is that inflation is a multiple pronged issue.
One cup of supply Vs demand increases.
Two cups of Government spending ($1.2 trillion and growing) increases
One cup of ordinary every day cost/labor pricing increases
Two heaping cups of a frothy stock market that continues to rise not based on performance… but on companies that are full speed ahead working their tails off simply to cover the demand that they weren’t able to deliver over the last 2 years due to COVID increases. Look at lumber as a perfect example. These companies aren’t “performing”… they are now creating their own price increases based on the supplier before them and the supplier before them and on and on and on … they aren’t performing, they are “recovering”, and the market is rewarding their recovery as if it were GROWTH! It’s not!!! They can barely get the past demand resolved at the prices of the stock before this all started.
Now everyone is telling us it’s a great time to buy stocks! Why? Is there more product on the shelves now than in the beginning of the supply crises? Nope.
Ok… so where is the actual growth to show that the market should be rewarded and respected as valuable as it has been the last 2 years?
And there you have it… you have a perfect storm for possibly tipping the whole batch over. The economy is top heavy.
The last thing we need to do is have the government print more money which devalues anything we might have saved in our lives. While at the same time we are at a tipping point even before we decided to spend 1.2 trillion…. (Of our money not taxpayer money. It’s not funds collected from taxpayers… This 1.2 trillion is printed $$$…)
printed money = more inflation….
I suppose many folks just don’t realize that.
Some will say it’s for infrastructure stupid!!!! We need that!!
No we don’t. We need the local and state governments to be held accountable for NOT managing those infrastructure issues over the last 30 or 40 years.
You have been paying your taxes to cover these “infrastructure” deficiencies for years….and where has all the money for Detroit’s lead water pipe infrastructure gone?
For stadiums and extra curricular activites that has nothing to do with healthy water for the citizens.
Why all of the sudden is the federal government fixing all the stuff we should have been fixing for 40 years?