Stockman Scott's Political Debate Porch Message Board

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Politics : Stockman Scott's Political Debate Porch

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To: Jim Willie CB who wrote (633)	6/24/2002 11:18:58 AM
From: 2sigma	Read Replies (2) of 89467

James, ...imagine BMW, Mercedes, VW, Audi prices rise 10% what will GM, Ford, Chrysler do for car prices? raise them... Why is it a certainty (or high likelihood) that "domestic" auto manufacturers will raise their prices to match the foreign companies? Assuming the domestics are not as exposed to the foreign companies via currency risk, why not assume the domestic auto mfgers. will keep their prices lower than the domestics and assume increasing unit sales? Relative to the foreign auto mfgers... Are the costs of the domestic mfgers. rising? Do the domestics incur a currency risk? Why not let the domestics compete on a price basis and make up the difference in unit sales? I agree with the Monetary vector theory of price inflation. Appreciate all of your energy into trying to figure this spiraling down scenario the US is in. take care J, Haps.

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