Bloomberg article: A $4,749 Bike Hints at Inflation Peril Looming for U.S. Economy

Katzenjammer

Member
Region
USA
A lot of money for a bike, for sure. But I do believe big-time inflation is coming soon. Buy any big ticket items you are thinking about before it hits if you can.
 

PatriciaK

Well-Known Member
Region
USA
City
Pacific Northwest and Piedmont Triad
I'm not worried at this point. So much was affected by the pandemic, including supply lines, that I don't think anyone can tell right now what's going to happen. People want quick answers, but this is one of those situations (much like the pandemic itself) where there just aren't any, and we have to wait and see. I suspect, though, that as things continue to return to normal, supply chains work out their temporary kinks, and people get back to work and out and about again, we're going to be ok.

There have been very expensive toys as long as there have been toys, electric, or otherwise 😉.
 

Deacon Blues

Well-Known Member
I'm not worried at this point. So much was affected by the pandemic, including supply lines, that I don't think anyone can tell right now what's going to happen. People want quick answers, but this is one of those situations (much like the pandemic itself) where there just aren't any, and we have to wait and see. I suspect, though, that as things continue to return to normal, supply chains work out their temporary kinks, and people get back to work and out and about again, we're going to be ok.

There have been very expensive toys as long as there have been toys, electric, or otherwise 😉.
It's like the world's economy is in 'wild-west' mode. No one, including all the so-called financial experts, seems to know what's going to happen.
 

Ebiker01

Well-Known Member
I think everyone raised their prices because they know that the Fed threw a lot of money out of thin air into the US economy. Same for most western countries and ECB (Eu central bank).
Nobody is buying a 5k bike in India... They will milk the right customers for as long as they can.
 

PatriciaK

Well-Known Member
Region
USA
City
Pacific Northwest and Piedmont Triad
There are plenty of ebikes out there that do NOT cost nearly as much. Not everyone wants or needs the kind of bike described in this article. Just because a few things cost a ton of money doesn't mean the entire economy is going to tank. I'm very happy with both of my sub $2000 bikes, thanks!
 

Westlafadeaway

Active Member
Region
USA
There are plenty of ebikes out there that do NOT cost nearly as much. Not everyone wants or needs the kind of bike described in this article. Just because a few things cost a ton of money doesn't mean the entire economy is going to tank. I'm very happy with both of my sub $2000 bikes, thanks!
The article is talking about "hints of the future" and is making a prediction that all bikes might get more expensive due to scarcity. Whether that holds over several years is the question.

So if the typical person can't get their $5 grand bike they are going to get the $2 grand and under bike, which then means scarcity for those people who have no need for the $5 grand bike because the $2 grand bike sold out too, so next year the $2 grand bike is now a nearly $3 grand bike.

It's the same with housing. If we only build a few housing units, the people who want the extremely expensive housing will bid top dollar to get the cheaper house because that's all there is, pushing out everyone else.

"The only way things [prices] would go down is if there’s a glut of supply,” said Joe Graney, chief executive officer of California-based Santa Cruz Bicycles. “That doesn’t seem like it’s going to be an issue.”"
 

PedalUma

Well-Known Member
Region
USA
A ten-grand Turbo Levo passed me on the gravel yesterday. Then I raced him and won with a lugged steel three-speed that has a three-pound battery. It depends on what people value, what their values are.
 

Stefan Mikes

Well-Known Member
Region
Europe
City
Brwinów (PL)
So what does a $10,000 dollar bike hint at? I saw at least one that price when I first started looked for an Ebike well over a year ago.
I was shocked enough to find out a carbon-fibre Specialized Diverge gravel bike cost the same as Turbo Vado 5.0. Now, look to performance road bikes with prices well over ten grands. There have always been expensive toys...