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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: russwinter who wrote (6344)1/29/2004 11:56:51 AM
From: Silver Super Bull  Read Replies (2) of 110194
 
RW:

RE: "How companies deal with higher "operating costs" (translate input goods inflation)"

IMHO these layoffs could be an indication that companies can't totally pass these input cost increases on through higher prices. If this is the case, it could lead to the profit squeeze I have written about before in previous posts.

Laying off people in order to offset input cost increases is obviously an interim "solution" (if one wants to be charitable) at best.

DB
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