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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: Mike Johnston who wrote (75087)12/9/2006 3:51:09 PM
From: John Vosilla  Read Replies (1) of 110194
 
'I touched on this subject a while ago: in high inflation environment a pizza or restaurant joint has only three options:
1. raise prices
2. shut down
3. lower quality of product and/or service'

Bingo. And given pass throughs of RE taxes and insurance (CAM)go through the roof and the new landlord just paid 2-3 times what the prior owner paid you can also expect costs to only rise higher and higher if you are in business. If you can't make it you just close up shop and someone else picks up the customers.. Lower prices and deflation if you are a consumer is impossible in the long run in the domestic service industry..
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