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Politics : Formerly About Applied Materials
AMAT 267.87-0.6%Dec 5 9:30 AM EST

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To: MileHigh who wrote (20639)6/22/1998 1:34:00 AM
From: Gottfried  Read Replies (1) of 70976
 
MileHigh, I eat several apples each day - really. <g>
The mechanism you described can also be observed in
crude oil. There is an oversupply right now and prices
have tumbled. Some producers are cutting production,
but traders say it's not enough. I bet it's the same in
your business. Somebody must make a start, and often
the effect is not only psychological, but leads to
imitation by competitors. I bet automobile makers
watch each others rebates closely, too. So I must
disagree with Big Bucks: a drop in the bucket can lead
to a torrent.
I bet he'll reply with a sailing ship analogy.<vbG>

Gottfried
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