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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: DukeCrow who wrote (71641)3/11/2001 11:53:12 PM
From: Estimated Prophet  Respond to of 99985
 
<<But why did the seller get excess inventory in the first place? Maybe it is because the seller anticipated marginal demand that wasn't there.>>

Yes. The seller built too much capacity, or maybe even got more productive with his capacity, and in the short term, produced more than the buyer would buy at the price that the buyer had previously signalled was in the acceptable price range.

EP