New Tractor Sales Are Declining

[turbo36]

Looks like this has changed in the past quarter. Might be worth checking out. My local credit union is below 4%.

There's another good site to track CD/savings rates.

https://www.depositaccounts.com/

 

[rScotty]

Looks like this has changed in the past quarter. Might be worth checking out. My local credit union is below 4%.

In that case you might want to talk to your banker. My experience is that they offer higher rates that they don't advertise - especially online.
rScotty

 

[Cahaba Valley Farm]

In that case you might want to talk to your banker. My experience is that they offer higher rates that they don't advertise - especially online.
rScotty

Why would they do that?

 

[Torvy]

Why would they do that?

Same reason your tractor dealers do it.

 

[Torvy]

Maybe this isn't the thread for it (feel free to moderate this message if it's not), but I don't believe this to be true.

With fractional reserve lending, every loan creates new money. And the reserve requirements were reduced (to zero, i believe) during COVID, so it's been really easy to create new money.

Yes, the government can do it too by issuing debt that is bought by the central bank with newly printed dollars (monetizing the debt), but at least some of the issued debt is bought with already existing currency, so doesn't actually increase the amount of "money" out there.

While I'm not a fan of zero reserve, the move to zero reserves is inconsequential to the money supply compared to deficit spending. Deficit spending absolutely increases the money supply.

 

[Cahaba Valley Farm]

Same reason your tractor dealers do it.

I'm not catching your drift.

 

[2manyrocks]

They probably have their best deals for the customers that come in person to ask for them instead of putting it out on the internet for everybody to see.

 

[Hay Dude]

I remember walking into my bank, kind of disgusted with my money market int rate. I let my asst manager know that and he adjusted the rate upwards considerably.
All I had to do is ask.

 

[Cahaba Valley Farm]

That has not been my experience with either banks or tractors.

 

[Hay Dude]

That has not been my experience with either banks or tractors.

You need to have a high level of customer value to them. Not implying you don’t.
It’s like a business relationship where you have been there a while, they take you for granted and stop giving you their best deals. Then you make a little noise. Sensing you may take your business elsewhere, they give you a better rate or deal.

 

[Cahaba Valley Farm]

I went to Kubota's website tonight to check prices and it looks like they have raised prices again but lowered the financing costs. They're apparently just playing the shuffle game right now.

 

[rScotty]

Why would they do that?

Same reason your tractor dealers do it.

I remember walking into my bank, kind of disgusted with my money market int rate. I let my asst manager know that and he adjusted the rate upwards considerably.
All I had to do is ask.

That has not been my experience with either banks or tractors.

Apparently not. If you have the time, I'd be curious about your thoughts.
rScotty

 

[Torvy]

In addition to what Hey Dude said, part of it is personality.

My dad is one of those who could sell ice to Eskimos in the wintertime. I couldn't give it away for free in the desert midsummer. Fortunately for me, my wife is a shrewd negotiator.

Banks are businesses. They compete with other banks for deposits which they use to make loans (read profits). If they want your business, they will negotiate, a bit.

I suppose another potential problem is your choice of brands/banks. If you don't feel respected, take your money elsewhere.

 

[drumminj]

While I'm not a fan of zero reserve, the move to zero reserves is inconsequential to the money supply compared to deficit spending. Deficit spending absolutely increases the money supply.

Please explain?

Deficit spending by local governments is done via bond issues, yes? Which the bonds are bought by..investors, using money that already exists.

Deficit spending by the federal goverment is done via...treasury/bond issues, which similarly are bought by investors, but also by the federal reserve via quantitative easing. I agree quantitative easing is basically printing money from thin air..but QE is the issue, not deficit spending there, as the treasuries that fund the spending (not via QE) are bought using existing US dollars, no?

I fail to see how deficit spending increases the money supply more than fractional reserve lending, where each loan made can be 100% newly magic'ed money due to zero serves, or 90% new money (assuming 10% fractional reserve).

IMO, this is an important topic as most people (and perhaps I'm one of them) don't understand our monetary system, how money is created, or what is actually causing inflation (increase in money supply, not increase in prices).

 

[Torvy]

Please explain?

Deficit spending by local governments is done via bond issues, yes? Which the bonds are bought by..investors, using money that already exists.

Deficit spending by the federal goverment is done via...treasury/bond issues, which similarly are bought by investors, but also by the federal reserve via quantitative easing. I agree quantitative easing is basically printing money from thin air..but QE is the issue, not deficit spending there, as the treasuries that fund the spending (not via QE) are bought using existing US dollars, no?

I fail to see how deficit spending increases the money supply more than fractional reserve lending, where each loan made can be 100% newly magiced money due to zero serves, or 90% new money (assuming 10% fractional reserve).

IMO, this is an important topic as most people (and perhaps I'm one of them) don't understand our monetary system, how money is created, or what is actually causing inflation (increase in money supply, not increase in prices).

So stop quoting people who do not understand Economics and take a few classes. There is much here you have wrong and I don't have the time or inclination to devote the background instruction it would take to help you understand. Not trying to be mean here, but it is rather like asking an attorney to give you free advice on legal matters and being frustrated when his advice does not match what Wikipedia said.

 

[drumminj]

So stop quoting people who do not understand Economics and take a few classes. There is much here you have wrong and I don't have the time or inclination to devote the background instruction it would take to help you understand. Not trying to be mean here, but it is rather like asking an attorney to give you free advice on legal matters and being frustrated when his advice does not match what Wikipedia said.

Clearly this isn't worth continuing to pursue, but I'll at least point out your flawed assumptions on me quoting anyone else vs sharing my own thinking, as well as not being educated on economics. I've explained and backed up my thinking, and here you're just making an ad-hominem and positioning yourself as a expert/professional that can't be bothered to engage in discussion and debate.

Obviously you "win". Yay?

 

[turbo36]

Clearly this isn't worth continuing to pursue, but I'll at least point out your flawed assumptions on me quoting anyone else vs sharing my own thinking, as well as not being educated on economics. I've explained and backed up my thinking, and here you're just making an ad-hominem and positioning yourself as a expert/professional that can't be bothered to engage in discussion and debate.

Obviously you "win". Yay?

Arguing on the internet is like competing in the Special Olympics,,, even if you win you are still just "Special" Ha Ha

 

[Torvy]

Clearly this isn't worth continuing to pursue, but I'll at least point out your flawed assumptions on me quoting anyone else vs sharing my own thinking, as well as not being educated on economics. I've explained and backed up my thinking, and here you're just making an ad-hominem and positioning yourself as a expert/professional that can't be bothered to engage in discussion and debate.

Obviously you "win". Yay?

No, I'm an Economics teacher who gets paid to do this all day with 17 year olds. In order to debate, you need the background understanding. I'm no expert. There are experts and my recommendation that you learn from them rather than 'debate' here on a topic with which you admittedly have no knowledge. Not looking to win anything. Just not a fan of people repeating incomplete and incorrect information to others who may think it is true. To be fair AOC is theoretically an expert as she has a degree in Economics, but her professors should have their credentials revoked.

 

[turbo36]

No, I'm an Economics teacher who gets paid to do this all day with 17 year olds. In order to debate, you need the background understanding. I'm no expert. There are experts and my recommendation that you learn from them rather than 'debate' here on a topic with which you admittedly have no knowledge. Not looking to win anything. Just not a fan of people repeating incomplete and incorrect information to others who may think it is true. To be fair AOC is theoretically an expert as she has a degree in Economics, but her professors should have their credentials revoked.

So not all economists agree, right?

 

[Cahaba Valley Farm]

Banks are businesses. They compete with other banks for deposits which they use to make loans (read profits). If they want your business, they will negotiate, a bit.

The key here is the word "compete". If there is a better offer somewhere else and the bank needs the deposits then they will compromise. I don't see that as being about negotiation as I see it being about awareness of the market conditions. In your scenario the customer has leverage which incentivizes the bank administrators to adjust their rates to keep your money there if they actually want it.

The tractor market was a sellers market for the first 2 years of covid and during that time you couldn't even get a call back from the dealerships. Now they are advertising on every radio station and TV channel. Maybe they are starting to rethink their bullish stance on price...we'll see.