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Carvana pressured to cut costs amid waning used-car demand

• PaulHoule 4y ago
  "This time is different" around inflation because people don't believe in it yet. When inflation has gone on for many years and people see signs of a shortage or rising prices they think "I'd better buy it now because I might not be able to buy it later." Today people see high prices and they think "I can't afford that" and they do without. Thus a constriction in used-car supply leads to a constriction in used-car demand. If this holds up, instead of the pattern of "central bank raises interest rates and crashes the economy", consumers will crash the economy on their own without help from the central bank.