Guitar Center layoffs

[Tdipaul]

You can’t sustain the current house prices with the current rates. The fuel for the frenzy the past 2 years was historically low interest rates coupled with low inventory. Now one of those key components is missing.

Are you referring to interest rates being that key component missing?

IMO 5 - 7 is still considered low, all things considered. We got spoiled with 3

 

[Tornado]

You can’t sustain the current house prices with the current rates. The fuel for the frenzy the past 2 years was historically low interest rates coupled with low inventory. Now one of those key components is missing.

Are you referring to interest rates being that key component missing?

IMO 5 - 7 is still considered low, all things considered. We got spoiled with 3

The thing is though, home prices shot up so much that even a modest increase in interest rates comes out to a whole lot of money.

 

[lossforgain]

that's
soapbox

more like step- ladder.
only a fool (if you want to see it that way) get's taken advantage of.
ponder that

And those who are wise learn from their own mistakes and the mistake of others. Ponder away.

 

[Squirrel Man]

And those who are wise learn from their own mistakes and the mistake of others. Ponder away.

Maybe we should have taken the mortgage discussion route, might have been safer.



(shutting up now)

 

[Mcjnic]

The weirdest thing about this whole thread?
VB and I agree on something.
I'm not saying that's entirely strange ... but my toaster is speaking in tongues now.

 

[el_37]

You can’t sustain the current house prices with the current rates. The fuel for the frenzy the past 2 years was historically low interest rates coupled with low inventory. Now one of those key components is missing.

Are you referring to interest rates being that key component missing?

IMO 5 - 7 is still considered low, all things considered. We got spoiled with 3

Once again you can’t look at it in a vacuum. The rates themselves are still low compared to 1982 or 1992, but they are high compared to 2021 and are comparable with 2002.

In June 2021 you could easily get 2.8% on a 30 year if you had score above 740.

A $500k house in 2021 costs per month what a $350k house did in 2005. Now that a $500k house costs monthly what it did in 2005- it is causing the brakes to be put on.

 

[JDA]

And those who are wise learn from their own mistakes

and have at least reached age 15 and beyond
don't need to be told
any 7 years old's bringing their 1960 cob gold plated supras into GC to sell; yea;
highly recommend against it; there's good advice

 

[ARGuy]

Do any of you guys that are obsessed with talking about home prices and mortgage rates on a drum forum go to home owners forums and complain about Guitar Center? Just wondering.

 

[Commodore]

Do any of you guys that are obsessed with talking about home prices and mortgage rates on a drum forum go to home owners forums and complain about Guitar Center? Just wondering.

Well, if I have one drum and my neighbor has two drums..

 

[Beefsurgeon]

Do any of you guys that are obsessed with talking about home prices and mortgage rates on a drum forum go to home owners forums and complain about Guitar Center? Just wondering.

Heh, it's not without precedent: https://www.bogleheads.org/forum/viewtopic.php?t=265174

 

[Mapex Always]

Once again you can’t look at it in a vacuum. The rates themselves are still low compared to 1982 or 1992, but they are high compared to 2021 and are comparable with 2002.

In June 2021 you could easily get 2.8% on a 30 year if you had score above 740.

A $500k house in 2021 costs per month what a $350k house did in 2005. Now that a $500k house costs monthly what it did in 2005- it is causing the brakes to be put on.

Life was so good there for about four years in a row, if one made all the right moves at the right time, then what’s going on now would have a lesser impact …. Maintain family while helping as many as you can …. And never be happy to see anyone go under, statement isn’t towards you, just a general thought in my head

 

[Blue Zurich]

The one closest to me has 1 maybe 2 employees at any given time. On their phones, not paying attention...I could be stuffing a cuica down my pants and no one would be the wiser.

 

[Lamontsdad]

For the record: I only said that the mortgage business is as tough to stay in as working for Banjo Center. Did not mean for the derailment.

 

[TomC727]

I think the eventual demise of Guitar Center (come on already!) may actually create opportunities for the re-emergence of mom & pop shops in some cities.

I hope so.

 

[Northamusi]

Seven years ago, I bought the final inventory of a local music store at 90% off.
They depended on schools for their bread and butter.


That segment is gone now.

This is true of the few Mom and Pop Shops in my area... they maintain schools to drive their retail business.

 

[stuart s]

Well, if I have one drum and my neighbor has two drums..

I have 5 (set up), neighbors and the whole "commons"- 0 ; doing my part keeping home prices low .......

But yeah, GC does have some good employees at the Vegas stores. I think its the MGMT/CORP thats the issue here.

 

[Lamontsdad]

Do any of you guys that are obsessed with talking about home prices and mortgage rates on a drum forum go to home owners forums and complain about Guitar Center? Just wondering.

Yes.
*
*
Just kidding. I only stated it was the only other business that is laying off. My intention was to illuminate that rather than to take it COMPLETELY off topic.

IMO- Banjo Center did this to themselves 100%.

 

[DanRH]

I only order from them for the Bit O’ Honey.

Metoo!!!

 

[Lamontsdad]

Metoo!!!

Had Bit O’ Honey from both my T rod and head orders (separate orders LOL). The only junk I eat these days.

 

[pgm554]

Just talked to one of the guys at the Santa Clara store.
Lack of foot traffic and inventory is causing the cut backs.
Even the local drum stores are turning to used as they can't get product.

 

[ian.thomas]

The GC right by my house (the Farmers Branch TX location) still seems to have a more-than-expected level of product and although there are only a few employees on staff any given day, they all seem nice and working hard.