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| The price of steel goes up a little, a few fewer buildings built, a few fewer roofs replaced, a fewer bins put up. Oil goes up 50 cents, people start making a little less money, consumers buy a little less. The interest rate goes up a few percent, a few fewer loans are made, the cost of debt goes up a few percent, businesses don't make quite as much, profits go down, spending gets cut.
It starts slow, this recession thing, but grows. The business cycle is inevitable.
Myself and bunch of my neighbors all sold timber this past few months ( on the stump, to be cut). We didn't talk to each other about it before, didn't even know the others sold. Why? Because prices are the strongest they've been now in long time and it's better to let the lumber mill at the risk. Let's hope the mills are smart enough to hedge it because they didn't last time and some of them were badly hurt. | |
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Steel prices
