SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : New US Economy Policy

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: Arthur Tang7/5/2007 9:06:49 AM
   of 435
 
The economy peaks out during the Xmas season. But the shipment from factory to warehouses are done before November 15 each year.

The productivity each year is planned in October, so that next year the manufacturers are lean and mean for more business. Restructuring therefore is done only at the end of October, making sure that last minute business surge is still done with this year's organization.

Once restructuring is planned in IT departments, the expense of the new build up is spent in the first quarter of next year, when consumers are busy paying back credit card loans. Industry is rebuilding for more capacity, which may end up in the summer months. And the cycle repeats itself.

So far so good. Reminders(restructuring) will go out in September; for durable goods sector, currently discounting 10% to clear inventory. The food industry will be busy working out new labor saving recipes in new packages, frozen, canned or sealed in plastic containers.

Fashion industry will be doing Spring fashion two seasons ahead to get inventory built. Autos will have new models ready October 1. Housing will be ready for delivery before winter comes and mortgage closing will need favorable fixed rates.

We will be busy in October? Wall street will be stabilized by large sums ready at the Feds overnight discount window in case of liquidity shortages. Currently, did the stop gap on Bear Stearns($3.2 billion loan out of $4 billion ready). Not much changes each year, from year to year; unless Alan Greenspan(he's gone) screwed up.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext