Pint or plywood?

April 23, 2021. – On Thursday this week, the European Central Bank decided to hold the interest rates on the current level. In addition, the pandemic stimulus by bond-buying will continue. These measures shall prevent the negative growth. But how does the stimulus fit the current building material sector?

On several continents, builders complain about wood material shortages and soaring prices. Material producers are busy in producing and replying to nervous customers. Distributors get creative by offering alternative materials to fill the gap. Building contractors have orders, but they have to spend more time to find material. 

The law of demand and supply should fix the situation. When prices go up, demand goes down. People postpone their building plans after hearing the new price for the project. But what if the stimulus and cheap money keep people building anyhow? Is the economic viagra too much?

Once the restaurants are open, we could take a break and order a pint instead of 4’x8’. A short bit of mañana-strategy shouldn’t harm the market.