Re: Various CL Pickings

Posted by Tim Cole On 2021/12/27 18:30:25

As regards the number of cars for sale, I think it is a reflection of the crackpot pricing inducing more listings.

The central bankers have destroyed national currencies by giving handouts to crooks like on Wall Street. So paper asset prices are unhinged from the fundamentals. Corporations get handouts and use it to buy back stock which also props up prices. If that money was being used for investment the picture would be different. And incidentally, the last stock offering I can think of that was issued for plant and equipment capital was 1906 Pennsylvania Railroad New York City Tunnel and Station project. It never paid for itself either.

This situation creates an emotional state of unrealistic expectations. When the cost of capital is zero then investing in junk cars is technically correct, but realistically foolish. Now that inflation is picking up investing in canned goods or raw materials is probably a better bet. That will cause painful adjustments as is being witnessed right now in certain inflated areas.

As for prewar cars being harder to find, there are more cars for sale now then ever. I remember when people paid thousands of dollars for first refusal options contracts on cars. Today if you want a Duesy - take your pick. Caddy V-16; sedan or phaeton? Packard Speedster? No problem.

Real estate is curious. Rents are skyrocketing and qualified tenants are in short supply. Those rotten renters are also lousy credit risks which creates a shortage of qualified buyers. You can demand any price you want and get it after twenty years of inflation.