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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: KyrosL who wrote (88056)10/28/2007 11:20:57 AM
From: I_C_Deadpeople  Read Replies (1) of 110194
 
However, commodities make only a tiny percentage of the final price of goods and services.

As a generic statement that is probably inaccurate. You have to account for the multiplier effect. A widget is produced and it will cost more when the base material of the widget goes up in price. But it will go up even more when the cost of a building to manufacture the widget goes up in cost and the cost of the utilities to run the machines goes up and so on....
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