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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Mike M2 who wrote (225143)3/4/2003 9:35:04 AM
From: Joan Osland Graffius  Read Replies (2) of 436258
 
Mike,

The discussion here on the price of goods in the US will deflate as demand decreases even if the US dollar goes down relative to other currencies is interesting. People should start reading what happened during other depressionary environments. People quit buying during these periods. They will spend money on goods that are necessary for survival and start contributing their own labor to these survival goods. More than likely people will buy cars when it costs more to maintain than replace. In this product area the cost of labor would depreciate and the replacement cycle should be longer. I would think buying up for technology changes would slow down considerably.

Also we should see these companies that produce products that are not required for survival should have a period of consolidation or go bankrupt.

The wild care in all this is will China and southeast Asia pick up the slack from an economic down turn in the US.
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