Hi Ike,..Re:.AG looks at productivity gains but completely misses the fact that huge number of global experts are immigrating to SV and the size of expert pool is increasing,he also fails to note that Bangalore's of the world are taking a lot of high cost entry level work away from US,
Excellent point. Work is constantly shifting to most efficient centers. This shifting seems to have the effect of opening up new areas for high tech while still benefiting from the lowest cost manufacture. It is amazing.
Also, while the smokestack industry in the US is still important, it is apparently becoming a smaller and smaller portion of overall GDP as time progresses. So again we have a shaky equilibrium as quiet shifts occur.<g>
In case you're interested in some anecdotal type industry news, it shows regional strength and maybe why some of the Fed guys are still stuck on costs and price stability.<g>
REALITY CHECK: CHICAGO PURCHASERS SAY ACTIVITY SURGED IN JULY
economeister.com
Michelini noted that most raw materials costs remain muted except for copper
"Labor is in very short supply," he said.
He does worry about wage inflation, noting that "local McDonald's are paying $7 to start -- we've never seen that before."
Also, apparently Germany (Otmar Issing) is becoming worried as well.<g>
GERMAN PRESS: ECB'S ISSING: 'HEIGHTENED VIGILANCE' ON PRICES
economeister.com
"The situation has changed" since the ECB lowered key interest rates in early April, he said. "The euro-area economy is improving, we have strong money supply growth and private credit growth over 10%. And the effect of the weak euro on import prices has to
be watched."
Recent data indicate that euro-zone economy is seeing a "broad-based rebound," Issing said. "We have been waiting for this for a long time."
So, I think you have a very good idea about having some cash ready to put to work and I'm doing the same.
Thanks for all your thoughtful comments.
Lee |
