BaT - Sy Ty sold
- Thread starter gmemony2
- Start date
Thunder_Lloyd
Active member
Crazy that that Ty went for more than the Sy
DaveP's Ghost
Well-known member
This is madness. I used to spend time and comment on BaT. My interest waned after the sale to Hearst Publications. I don't know exactly what the fuck is going on over there now, but I have an idea. Even the town drunk can tell that we are in an Everything Bubble of proportions never seen before. (2006-2007 was childs-play compared to 2022). What can't go on forever WON'T.
When money can be borrowed at 3% with inflation running at 10+%, the Fed is going to have NO choice but to step on the brake by raising rates Paul Volker style (1980-1982) to stop the inflation before it causes civil unrest when the lower 50% of the country can't afford to buy gas to get to work and afford to buy food to feed his family.
People with huge run-ups in their equities such as stocks, crypto, etc are rushing for the exit by transferring some of their recent gains into something tangible. There is going to be significant reductions in valuations on everything. The guy that just bought that Ty on margin knows it isn't going to be able to be sold for that in 12 months, perhaps even 12 weeks. He knows his equity account could go to zero, but he'll still have a cool car that will be worth more than zero.
BaT is an easy venue to find cool cars on. The competition is fierce, lots of buyers with big margin accounts, looking for a hedge against the Big Zero that pretty much everyone now admits is coming. They don't care what they pay because they're using Monopoly Money to buy it. Monopoly Money isn't real, it doesn't have any value. But that Ty, Sy, and most of the other cars on BaT always will be worth real money to someone, somewhere.
I'm pretty sure that's what we're seeing on BaT.
When money can be borrowed at 3% with inflation running at 10+%, the Fed is going to have NO choice but to step on the brake by raising rates Paul Volker style (1980-1982) to stop the inflation before it causes civil unrest when the lower 50% of the country can't afford to buy gas to get to work and afford to buy food to feed his family.
People with huge run-ups in their equities such as stocks, crypto, etc are rushing for the exit by transferring some of their recent gains into something tangible. There is going to be significant reductions in valuations on everything. The guy that just bought that Ty on margin knows it isn't going to be able to be sold for that in 12 months, perhaps even 12 weeks. He knows his equity account could go to zero, but he'll still have a cool car that will be worth more than zero.
BaT is an easy venue to find cool cars on. The competition is fierce, lots of buyers with big margin accounts, looking for a hedge against the Big Zero that pretty much everyone now admits is coming. They don't care what they pay because they're using Monopoly Money to buy it. Monopoly Money isn't real, it doesn't have any value. But that Ty, Sy, and most of the other cars on BaT always will be worth real money to someone, somewhere.
I'm pretty sure that's what we're seeing on BaT.
Last edited:
RealFastV6
@jb_and_his_coffee
Can’t disagree Dave. You can see it in the Rolex market too.
DaveP's Ghost
Well-known member
FJB
Here's another part of the problem. The national debt is about 30T. At the current interest rate, service on that debt is about 350B per year. That's peanuts, and a big part of the inflation problem: "Borrowing money" doesn't "cost enough". When the rates go high enough to get this inflation wave under control, the cost of the Debt Service is going to be in the Trillions. That will put a dent in expenditures in other areas of what .gov spends money on. Some of those expenditures are useless, and won't be missed. But there are other areas where cuts will cause pain for everyone. Buckle-up.
Again, FJB
Here's another part of the problem. The national debt is about 30T. At the current interest rate, service on that debt is about 350B per year. That's peanuts, and a big part of the inflation problem: "Borrowing money" doesn't "cost enough". When the rates go high enough to get this inflation wave under control, the cost of the Debt Service is going to be in the Trillions. That will put a dent in expenditures in other areas of what .gov spends money on. Some of those expenditures are useless, and won't be missed. But there are other areas where cuts will cause pain for everyone. Buckle-up.
Again, FJB
QWERTYphoon
Motley Driver Award 2009
About 20 per cent of all US dollars were created this year.
The Federal Reserve has printed unprecedented amounts of money to support the coronavirus-stricken economy.
Data from the Fed shows that a broad measure of the stock of dollars, known as M2, rose from $15.34 trillion at the start of the year to $18.72 trillion in September. The huge growth in the stock of dollars reflects the massive interventions in the economy by the Fed, which is in control of the US’s money supply. Banks also create money to lend. Most money in the economy is created this way. Only about 2 trillion are in circulation as physical currency. “In order to offset a contraction in credit, the central bank has to create a lot of money… to make sure the economy keeps functioning.” Like DaveP says "Buckle UP!"
The Federal Reserve has printed unprecedented amounts of money to support the coronavirus-stricken economy.
Data from the Fed shows that a broad measure of the stock of dollars, known as M2, rose from $15.34 trillion at the start of the year to $18.72 trillion in September. The huge growth in the stock of dollars reflects the massive interventions in the economy by the Fed, which is in control of the US’s money supply. Banks also create money to lend. Most money in the economy is created this way. Only about 2 trillion are in circulation as physical currency. “In order to offset a contraction in credit, the central bank has to create a lot of money… to make sure the economy keeps functioning.” Like DaveP says "Buckle UP!"
QWERTYphoon
Motley Driver Award 2009
It is wisest to invest cash to where there is a return equal to or above inflation, instead of leaving it sitting idle. Cash is king is the phrase is often used when prices in the securities market are high, and investors decide to save their cash for when prices are cheaper. Right now, nothing is getting cheaper and probably won't. If employing a strategy of holding a lot of cash, You should estimate future cash needs and rates of inflation.
I see it as someone paid top dollar for a future ( current) collector truck in museum quality condition. Now we know what the market will bear for the best. Let’s enjoy our projects/ drivers/ show quality trucks knowing they all got bumped up a few thousand dollars. My Sy won’t net me 100k but it just got some well earned respect as a low production, high performance collector vehicle. I’m ok with that.
corsair231
Active member
Holy chit!
Hell, mine ought to be worth at least $1,500.00 now.
Hell, mine ought to be worth at least $1,500.00 now.
