Ford hikes prices on Mexico-produced models, citing tariffs

[Guss-E 2021]

It shows “US household checkable deposits.” It’s what American families have in bank accounts. And the number went up 400% since 2019.

That’s what happens when you shut everything down and at the same time print 6 trillion dollars.

So while we (as a whole) complain about prices. We rich. ?

JHC (400%), I did not know the percentage, but yah. My company and job relates to facilitating SBA 504 and 7a financing for small businesses. We had an amusing conversation about all the PPP fraud. I look at business and personal financial statements and credit reports weekly. It was amusing watching S-Corp distributions jump from $50K to $500K (pulling PPP money out). I think a large number of folks are still riding the tip of that wave.

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[Jimrpa]

They call it the "resort fee".

Oh, they’ve done better than that - they have “destination fees” now. You know, for that Townplace suites in some random industrial park ???

 

[Jimrpa]

As a result of government policies during Covid there actually ARE tons of people with extra cash that can “shrug it off.”

It pretty much explains the economy for the last few years: prices went WAY up, people complained…….but still bought everything.

Why? Because of the few trillion EXTRA dollars in bank accounts.

This chart pretty much explains it:
https://fred.stlouisfed.org/series/BOGZ1FL193020005Q

It shows “US household checkable deposits.” It’s what American families have in bank accounts. And the number went up 400% since 2019.

That’s what happens when you shut everything down and at the same time print 6 trillion dollars.

So while we (as a whole) complain about prices. We rich. ?

Which, by the way, introduces inflation. Shrinking the money supply without breaking the economy is very difficult.
(and not everyone got “rich” off PPP and other programs during the pandemic. Those programs were intended to be sincere attempts to help the marginalized edges of society .)

 

[Sikkun]

Shocked, shocked a tell you!

But arguing economics with a person that bankrupted casinos seems pointless.

You support this crap? Cool. Stop bitching about prices. Pay more and like it. Last I heard you can live with 5 pencils and 1 doll.

 

[Mach1E]

Yea, nope.

Wrong chart. I think you are thinking about personal savings, not deposits.

Try this one.
https://fred.stlouisfed.org/series/PSAVERT

Personal savings is cratering!

You have the wrong chart for the point I made.

My chart (checkable deposits) is how much money people have in the bank.

Your chart (personal savings) is how much extra cash people are putting away now.

Personal savings going down is actually the current GOAL of the government for the last few years. It’s the only way to get inflation down and keep it down.

We have (strange to say) too much money in the US. This combined with supply chain shortages created high inflation and worker shortages of the last few years.

We (as a whole) don’t need even more savings increasing those bank account values, we actually need that money spent off.

If not? Sustained high inflation and a serious problem for low income or fixed income (retired) individuals.

 

[Mach1E]

Which, by the way, introduces inflation. Shrinking the money supply without breaking the economy is very difficult.
(and not everyone got “rich” off PPP and other programs during the pandemic. Those programs were intended to be sincere attempts to help the marginalized edges of society .)

Yeah, it’s a big mess we got into and are still feeling the effects of it.

Economists still aren’t quite sure the best way to dig us out of this hole. That’s why in 2022 “most experts” were certain we would have a recession by early 2023.

As long as there is money and lots of jobs, it has kept us afloat.

But you’re absolutely correct. Not everyone got rich on PPP and the like.

But as a whole? We quadrupled our bank accounts.

Shouldn’t be surprised when everyone got checks in the mail combined with not going on vacation and not eating out because everything was closed.

You can’t flood 6 trillion dollars into the economy when there’s “nothing to buy” while suspending loans etc and not expect a lot of that extra cash to end up in banks accounts.

Now how do we fix it from here? Glad I’m not in charge because it won’t be easy.?

 

[zvez]

Yah not much talk about the parts industry (not in the headlines at least). Everything is all about how the cost of new cars will go up. So yah that new car you can't buy and the old car ya gonna keep and just fix? Yah, that's gonna cost you more too. Good times.

yeah used car prices are already jumping up according to Mannheim index. https://www.cnbc.com/2025/05/07/used-vehicle-prices-auto-tariffs.html

 

[MonkeyNutz]

Already seeing new dealer-ordered Mach-E's pop up in the system reflecting the pricing changes. MSRP on ours we ordered back in December was a fuzz over $52K MSRP. Saw a window sticker just issued for one with identical configuration at $55.2K. A $3,150 increase. The biggest changes were the base price along with an increase to the extended range battery.

 

[Jimrpa]

Yeah, it’s a big mess we got into and are still feeling the effects of it.

Economists still aren’t quite sure the best way to dig us out of this hole. That’s why in 2022 “most experts” were certain we would have a recession by early 2023.

As long as there is money and lots of jobs, it has kept us afloat.

But you’re absolutely correct. Not everyone got rich on PPP and the like.

But as a whole? We quadrupled our bank accounts.

Shouldn’t be surprised when everyone got checks in the mail combined with not going on vacation and not eating out because everything was closed.

You can’t flood 6 trillion dollars into the economy when there’s “nothing to buy” while suspending loans etc and not expect a lot of that extra cash to end up in banks accounts.

Now how do we fix it from here? Glad I’m not in charge because it won’t be easy.?

Frankly, the only known way to “sop up” the excess money is price inflation, which disproportionally hurts those living on the margins. It also pisses off the “middle class” who remember that a dozen eggs cost $3 last year and now cost $6 (or whatever - I don’t buy eggs).
This is why the Fed does not want to reduce interest rates. All that does is dump MORE money into the economy (I know, sounds counterintuitive, but it’s true). You have large institutions then taking all that “cheap” money and competing with individuals in select markets (like residential real estate), pissing off the “middle class” even more because they can no longer “afford” houses when they’re trying to compete against cash purchases by institutions.

 

[Sikkun]

Average debt is 40k, 60%+ live paycheck to paycheck, only 40% have anything saved for retirement. And a trip to the hospital can bankrupt most people.

Yet the problem is average people have too much money!!! Amazing how all those companies made record profits while “being shut down and no one spending money”.

What a joke. No wonder we are being ran by idiots.

Thank God we will give Elon more money this year, man is really hurting. Cant have the plebes having savings, make sure they buy their Trump coins and suck it all to the top.

 

[voxel]

As a result of government policies during Covid there actually ARE tons of people with extra cash that can “shrug it off.”

It pretty much explains the economy for the last few years: prices went WAY up, people complained…….but still bought everything.

Why? Because of the few trillion EXTRA dollars in bank accounts.

This chart pretty much explains it:
https://fred.stlouisfed.org/series/BOGZ1FL193020005Q

It shows “US household checkable deposits.” It’s what American families have in bank accounts. And the number went up 400% since 2019.

That’s what happens when you shut everything down and at the same time print 6 trillion dollars.

So while we (as a whole) complain about prices. We rich. ?

M2 money supply created the asset (housing + stock) inflation. Your chart shows deposits + assets.

Once the housing drops a little (or a lot) that chart will fall off.

I've always said Powell did a great job dealing with the mess of money inflation from 2020-2022. with his QT. He just needs to keep interest rates high for another 2-3 years IMO.

https://wolfstreet.com/2025/05/01/f...eak-to-6-71-trillion-lowest-since-april-2020/

 

[voxel]

Frankly, the only known way to “sop up” the excess money is price inflation, which disproportionally hurts those living on the margins. It also pisses off the “middle class” who remember that a dozen eggs cost $3 last year and now cost $6 (or whatever - I don’t buy eggs).
This is why the Fed does not want to reduce interest rates. All that does is dump MORE money into the economy (I know, sounds counterintuitive, but it’s true). You have large institutions then taking all that “cheap” money and competing with individuals in select markets (like residential real estate), pissing off the “middle class” even more because they can no longer “afford” houses when they’re trying to compete against cash purchases by institutions.

No. The monetarist policy has been high interest rates to kill asset inflation and soak up excess fiat money supply. The Fed can stop buying T-bills (aka government debt) as that lowers interest rates and basically increases fiat money supply (which leads to inflation).

Yet the problem is average people have too much money!!! Amazing how all those companies made record profits while “being shut down and no one spending money”.

Carmakers learnt that lower volume and higher margins = higher profits. There is no need to oversupply the market anymore so they will keep prices high. Capitalism has been optimized.

 

[cmdmonkey]

I dunno. I paid $36K for my 2022 GTPE, but I usually look to buy cars at three years old. I’ve only bought new twice in my life (and I’m in my 50s).

was it $36k out the door with tax and all fees?

 

[Jimrpa]

No. The monetarist policy has been high interest rates to kill asset inflation and soak up excess fiat money supply. The Fed can stop buying T-bills (aka government debt) as that lowers interest rates and basically increases fiat money supply (which leads to inflation).

I think we are both getting to the same answer (keep interest rates high to ultimately reduce money in circulation). We just took slightly different routes ?

 

[ChasingCoral]

Shocked, shocked a tell you!

But arguing economics with a person that bankrupted casinos seems pointless.

You support this crap? Cool. Stop bitching about prices. Pay more and like it. Last I heard you can live with 5 pencils and 1 doll.

Get your facts right. He said 2 dolls.

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