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His comments on inflation are interesting. Elon is not right about everything, but he usually gets the big picture right. Without side tracking the discussion

His comments on inflation are interesting. Elon is not right about everything, but he usually gets the big picture right. Without side tracking the discussion too much, how is everyone so sure the rise in inflation is what it is? Wouldn’t the rise in prices be more attributable to supply shocks of the last two years? We know housing is shocked due to inventory, along with cars due to semiconductors, and general electronics (still can’t click buy-it-now on a PS5 at MSRP, still near $1k). How can this be inflation? How are they sifting supply and demand out of the equation? Inequality has been so high for so long, that I can’t imagine even 10 trillion dollars of global money shifting the pendulum in the other direction like this. Most people didn’t put that stimulus money into assets, it should have technically vanished (aaaaaand it’s gone - South Park) into consumerism.

vmception 4y ago
Right, demand is a major factor. People just don't want to acknowledge that "compute time" has a market price far above MSRP. Especially GPU based compute time. People want to point at people they don't like "scalpers!" "crypto miners!" instead of attempting to quantify how much of the demand they are, while ignoring other areas where demand has grown where there is also a profit motive rationalizing paying a higher market price: multiple trillion dollar companies and several hundred billion dollar companies are building data centers everywhere for cloud gaming, cloud computing. This inherently requires buying all high end GPUs as fast as possible, and they're going to charge people monthly subscriptions to use them. and then there are the consumer and hobbyists and enthusiasts. It was a supply shock while demand has grown. People just don't want to accept that they'll never get a nice GPU at 2019 prices. That they need a new hobby if thats what they use GPUs for. Many analysts pointed out that gaming has been the most undervalued entertainment sector, because its audience is price sensitive and whiny. Well, now its less undervalued as the hardware is more expensive. Then after that there are the inputs that have increased in the number of dollars needed to get them, a major factor there being the increase in dollars existing and how it pools into certain areas of the economy (which increased demand and scarcity of those things too.)

vmception 4y ago

Right, demand is a major factor. People just don't want to acknowledge that "compute time" has a market price far above MSRP. Especially GPU based compute time. People want to point at people they don't like "scalpers!" "crypto miners!" instead of attempting to quantify how much of the demand they are, while ignoring other areas where demand has grown where there is also a profit motive rationalizing paying a higher market price: multiple trillion dollar companies and several hundred billion dollar companies are building data centers everywhere for cloud gaming, cloud computing. This inherently requires buying all high end GPUs as fast as possible, and they're going to charge people monthly subscriptions to use them. and then there are the consumer and hobbyists and enthusiasts. It was a supply shock while demand has grown. People just don't want to accept that they'll never get a nice GPU at 2019 prices. That they need a new hobby if thats what they use GPUs for. Many analysts pointed out that gaming has been the most undervalued entertainment sector, because its audience is price sensitive and whiny. Well, now its less undervalued as the hardware is more expensive. Then after that there are the inputs that have increased in the number of dollars needed to get them, a major factor there being the increase in dollars existing and how it pools into certain areas of the economy (which increased demand and scarcity of those things too.)