Tuur Demeester
Tuur Demeester

@TuurDemeester

4 Tweets 4 reads Feb 18, 2022
1/ "Corporate greed" is a story that will grow louder as the inflationary depression unfolds, along with demands for price controls (which will make shortages worse).
youtube.com
2/ A few unanswered basic questions:
- Why would businesses get "greedier" during crises?
- Why wouldn't competitors charge less than the greedy ones & make up for it in volume?
- Where are the startups to disrupt the "old boys'" supposedly corrupt status quo?
- etc.
3/ I also noticed that interviewee Lindsay Owens omits to mention Fed QE & Stimuli in her list of what causes the current inflation. Even though the M2 money supply has more than doubled since 2013! And look at the Fed balance sheet...
4/ "Alarming" increase in profit margins is likely explained by the fact that businesses need to build buffers to sustain operations. They're facing:
- shortages in labor, parts, raw materials
- volatile input costs
- political uncertainty
- consumer demand uncertainty
- etc.

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