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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (9829)3/10/2004 10:14:20 AM
From: russwinter  Read Replies (1) of 110194
 
So today's quiz: how do they build up from record low business inventories without inexpensive and readily available input goods and raw materials? Wall Street has little clue about this Train Wreck dynamic. Economy is in a serious bind here.

Reuters
January Wholesale Stocks Below Forecast
Wednesday March 10, 10:02 am ET

WASHINGTON (Reuters) - Inventories at U.S. wholesalers rose less than expected in January, Commerce Department data showed on Wednesday, and the pace of sales more than halved as demand for cars posted the largest fall in over six years.

Commerce said wholesale stocks of goods rose 0.1 percent after a revised 0.6 percent advance in December, and below the 0.4 percent monthly gain expected by Wall Street.

Wholesale sales rose 0.6 in January after gaining a revised 1.5 percent the previous month, but car sales fell 6.6 percent in their weakest performance since December 1997.

The closely watched inventory-to-sales ratio, which measures how long it would take to run down stocks at the current sales pace, was steady at a record low of 1.17 months' worth.

The ratio indicates the leanness of inventories compared to sales and is a guide to how much wholesalers will have to ramp up sales to rebuild stocks.
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