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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Kirk © who wrote (22163)6/26/2006 8:31:47 PM
From: David Bogdanoff  Read Replies (2) of 42834
 
Kirk;
I've never heard of Walmart or landowners lowering prices or rents just because the price of gasoline goes up.

That's an interesting point. I would not necessarily expect an immediate impact of increased oil/gasoline prices on consumer prices. There are just too many variables in the economy to expect that. But it seems to me that BB's reasoning on the effects of increased oil prices is wrong simply because he ignores the impact of increased oil prices in other sectors of the economy (e.g. cost of production).
He seems to have considered only an increase in demand as the sole source of inflation. Not so.
Bogtalk
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