Krugman-Stock Market & Economy are Unrelated

(insert rant about Cathie Wood hype here)

Don’t tell Ford Motor there is a limit to price increases. Ford, and several other automakers are basing their business models on ever bigger, ever more expensive, products. There was a thread about pushing ATP and GP to infinity nearly a year ago. This thread also has data showing that, wile Ford keeps jacking up prices, it’s cars are some of the most troublesome on the road, because quality and customer service hurt profits.

Auto lots these days are far from sold out. No one expects auto production to hit 18mm units this year. Best guess is 16mm. Inventories have recovered from the chip shortage. Ford pricing strategy doesn’t fit with current economy discussion.

Edit: Google sources rate Daily Beast bias as left to strongly left.

What is the bias of The Daily Beast?


Could have fooled me.

As Cathie noted companies like P&G report they are reaching the limits of price increases.

Big surprise. They jacked prices in the past three years under cover of pandemic. The record profits were a clear indication that the price increases were extraordinary and not as everyone was told, because raw materials prices were increasing or transport costs or labor costs or whatever other excuses they threw out there. You don’t get record profits from the same product line without: decreased expenses or increased prices or substantially higher volumes. Which do you think it was?