The good Professor still doesn't see enough inflation.*
I am beginning to suspect there is a deliberate effort to crush what's left of the middle class.
From Torque News:
Car buyers likely to pay more for new and used cars in 2012 as the economy improves.
Although most Americans are rooting for an improved economy, prospective car buyers may want to think twice. A new study conducted by the National Automobile Dealers Association predicts that the average new and used car prices will go up as the economy recovers.*See for example "The lure of inflation" from Krugman-in-Wonderland.
While the U.S. economy continues to grow at a sluggish pace, the NADA suspects that average car prices may experience a swift increase. Specifically, the NADA contends that new car prices will rise 6 percent to roughly $30,000 in 2012. Used car prices are expected to rise 1 percent for small cars to about $9,475, while the price for used pickups and SUV's may increase by upwards of 8 percent. Also worth noting, the NADA predicts that the worst time to buy a vehicle in 2012 will be in the spring; when both new and used prices peak....MORE