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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: mt_mike who wrote (51489)5/15/2002 1:55:09 PM
From: Jim Willie CB  Read Replies (8) of 65232
 
I think higher costs will end up eating profits
I see it coming on a widespread systemic basis
but margins can be improved by new rounds of layoffs
rather than price hikes just yet
when the economy really improves, then price hikes
like selling into strength
but until that elusive recovery, shed costs

many jobs were held by firms last year with expectation of 2ndHalf Recovery
which never happened
now more jobs are held with the same expectation
this time, I think we recover slightly, but without earnings

the final conclusion by many firms who see that the economy is stuck in a malaise could be to layoff bigtime
they must restore profits, or face a languished future
they know they must continue to invest in equipmt eventually
layoff savings may likely provide the main source of investmt capital
my 2c, JW
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