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

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To: UncleBigs who wrote (52393)2/2/2006 9:30:16 AM
From: russwinter  Read Replies (3) of 110194
 
the higher incomes would tend to support housing and retail sales for a awhile longer.>

The big question though is real wage gains as opposed to nominal. There is so much inflation now in the system that almost all employers realize 2-3% wage increases to their employees is a joke, and are probably forced to increase at least that. However if they get a 4-5% increase and face 7-8% inflation in the good and services they use, then they are still under immense pressure.

So now we have a new facade of reporting 5% sales gains like it's some great number, when in reality it's nothing more than inflation. Profit margins on these sales will be more important.
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