"How Corporate Greed Led to Inflation" <----- search that title on YouTube and watch how corporate greed and insanely high profits are all part of "riding the inflation train" and causing inflation to be worse than it should be. Everyone is money greedy and just can't get enough profits it seems while the "gettin' is good". This has to end if inflation is going to stop.
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- Thread starter Warstud
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I got a little money trading inverse ETFs, I’m up nicely YTD.
I believe we need another 30% downturn by next year.
Lots of companies like Tesla still overpriced…..
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While I don't disagree - its a free market. People are willing to pay, so why shouldn't companies profit?
It will end like it always does, slowly at first, then all of the sudden.
Basic economics teaches us that prices will rise until consumption is reduced to an unacceptable limit. This includes cutting production (supply) to increase scarcity, which makes the product more valuable as long as there is strong demand.
It very well may require a pretty good recession to stop the greed. At some point people will get tired or paying more than they really should, and the greedy companies will feel the effect of the lash back. Some may even be eventually ruined from their profit greed.
https://nypost.com/2022/10/19/tesla-shares-tumble-after-missing-revenue-forecasts/
I like Tesla innovation and technology but it’s stock is way overpriced.
We will see what happens over the next year and how this recession affects Tesla.
The better answer is competition. A viable alternative which costs less.
Yes, part of the equation. But a recession will force companies to cut prices and give up some profit greed. It may also really hurt thier bottom line, or even put some out of business. Hopefully being less greedy over the option of cutting production to keep prices high. The "euphoria of big profits" can make people evil, but it can also backfire on them too, which would be totally justified IMO.
Recessions hurt everyday people as well. Inflation is a product of low unemployment.
A good example here is Beyond Meat. Consumers are not paying higher prices for their products. Sales are down drastically. This was a $70 stock near the beginning of the year but now it’s $12 and change.
This is just one example.
Yes Dave I like those ETF's myself as a matter of fact.
I'm not sure I follow your logic. What is this an example of? Sales of plant-based meat have been poor for 2 years; demand tanked.
I see Beyond Meat (and other like products) as a failing product. Not sure what I am missing...
Greed?
Who is to dictate how much money/profit someone or a company can make?
Supply and demand rules, its not greed and does not have to end, if I have a product people want I will charge whatever the public will pay or I’ll invest in that company that has the product. So will the fund managers of everyones 401k plan.
Historical low interest rates and this is the main cause of inflation, https://www.usdebtclock.org/
Search anything on YouTube and you will find someone who shares your point of view/thoughts. It’s all meaningless.
(Just a friendly discussion)
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GON
$150 Site Donor 2025
AG,
You are spot on- with the caveat that the government is not causing barriers to entry/market- specifically government policies and regulations. If the market is truly free- let the market determine the profitability of an enterprise.
Yes, it is capitalism and "free enterprise", but a high degree of greed for money and profits are definately in play on this inflation train ride. People are already getting sick of paying way more, and it's already showing. The greedy are not doing our economy any good in the long run. If we get pushed into a full blown recession they won't be laughing all the way to the bank anymore. And the people investing in them will be crying the blues too. The bubble is building.
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Going to be fascinating to see how Twitter unfolds with Musk at the helm and if there will be further TESLA turmoil in the stock price if to much attention to Twitter in the press.
I assume somehow what takes place will still make it into the press even though it’s going private. With Musk saying up to 75% of Twitters staff is going to be fired this is really going to be interesting.
Forgetting the above I’m getting antsy to buy something maybe short term speculative in my trading account which I just found out Ameritrade closed do to being inactive. I’m really out of the speculative stage of my life, now it’s preserve and grow. More of a tiny scale fun thing to experiment on an idea.
I couldn’t get into my IRA because I always logged into my trading account and clicked into my IRA from there. So I call and the service department had to have me set up a login for the IRA and was very apologetic to an extreme which surprised me and said “believe me your not the only one” She went on to say since Ameritrade is merging with Schwab the good people at Schwab decided to wipe out accounts that were not being used and seems like did not properly notify everyone. Ummmm yeah me included I was shocked at the candor of the employee she was not happy explaining this should not have happened like this.
I’m still long term in WMT, TMUS, WFC in an IRA. Sure I wish I got out 11 months ago (I almost did) but I’m not really bothered those 3 really are not doing bad compared to what I paid, it would have been nice to lock some profits but this account is not for trading and speculating which way the market will go, it would have been a great move because it was on my mind but in my life there would have been times were it would not have been a good move so overall Im happy.
I’m seriously watching GM as maybe a value. could the coming 2 years be the ones out of the last 5 decades that Lucy doesn’t pull the football away from Charle Brown?
I assume somehow what takes place will still make it into the press even though it’s going private. With Musk saying up to 75% of Twitters staff is going to be fired this is really going to be interesting.
Forgetting the above I’m getting antsy to buy something maybe short term speculative in my trading account which I just found out Ameritrade closed do to being inactive. I’m really out of the speculative stage of my life, now it’s preserve and grow. More of a tiny scale fun thing to experiment on an idea.
I couldn’t get into my IRA because I always logged into my trading account and clicked into my IRA from there. So I call and the service department had to have me set up a login for the IRA and was very apologetic to an extreme which surprised me and said “believe me your not the only one” She went on to say since Ameritrade is merging with Schwab the good people at Schwab decided to wipe out accounts that were not being used and seems like did not properly notify everyone. Ummmm yeah me included I was shocked at the candor of the employee she was not happy explaining this should not have happened like this.
I’m still long term in WMT, TMUS, WFC in an IRA. Sure I wish I got out 11 months ago (I almost did) but I’m not really bothered those 3 really are not doing bad compared to what I paid, it would have been nice to lock some profits but this account is not for trading and speculating which way the market will go, it would have been a great move because it was on my mind but in my life there would have been times were it would not have been a good move so overall Im happy.
I’m seriously watching GM as maybe a value. could the coming 2 years be the ones out of the last 5 decades that Lucy doesn’t pull the football away from Charle Brown?
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The question is why are people paying? That’s the basics. All companies are greedy and all humans are as well. Would you turn down a pay increase from your employer? I highly doubt it.
Many high end goods are flying off the shelves, computer stuff like graphic cards that cost as much as an entire system used to cost, all gone the day of the launch. Cars the same. All these people working from home and not wanting to return to the office, why are they overpaying for new and used cars?
The list goes on and on. People are spending like there is no tomorrow and the recession that you think will stop corporate greed, will hurt the regular consumer far more than the corporations.
Absence of viable alternatives.
Right, but then how is the corporate greed, as @ZeeOSix alludes?
I don’t like the inflation and how much even normal things have risen in price as much as anyone else, but I do not see how corporate greed is driving the inflation.
There are some “forces” like in real estate where it’s the first time in history where private corporations are buying up single family homes, which for sure contributes to higher prices, but we cannot blame everything on corporations now can we?
"Greed", corporate or otherwise, depends on which side of the deal you are on. Why is gas in CA $6 (or more) but the national average like $3.50? I bet TX is like $3.25 or less. Follow the money, as they say. Taxes and additives do not make that much difference. We have 14 refineries in CA, but most are small. We have 1 in the Bay Area, the Richmond refinery. Refinery profits are at an all time high right now. Interestingly, CA is giving car owners a kick back, due to state law that sez if the budget surplus exeeds a certain level, the money must be returned to the tax payers.
This is one example, but a big one. The world tuns on oil, and everything we consume is delivered by truck at one point or another. There is no viable alternative.
From a more macro perspective, markets are less competitive. Many companies have merged into bigger companies over the last 10 - 20 years; a natural result as markets mature. Corporate profits have hit 70-year highs, and inflation is at 40-year highs. So is this all connected? Your call. Is this good or bad? Your call.
In Economics, there are always winners and losers. I just depends on which end of the deal you are on.
Economics teaches us, that over time, entrepaneurs will target highly profitable markets and (try to) develop alternative products. There are other major influencers, such as government fiscal policy, but this is not the place for that discussion. We can say that the US is defined as a limited market driven economy.
