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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (8299)	9/6/2001 11:31:14 AM
From: Ilaine	Respond to of 74559

OK, "poor information" should include "failure of crystal ball."-g- It's also an unfortunate human trait to keep making things even though you know no one will buy them, just to keep your job. That usually occurs when you're spending other people's money. I know for a fact that this occurs at the tail end of construction booms, when the guys who are building spec properties keep building so they can draw the next tranche. I assume this happens in manufacturing, when the middle managers keep the widget-makers going, stuffing inventory, in the hope that they can keep going long enough to get their bonus or find another job, or whatever. I realize that denial is a powerful thing, but doubt that most people spend their own money making things they know that no one wants. Edit: it's rational to make things (for a short time) you can't sell at a profit, just cover your fixed costs because you're going to have fixed costs, anyway.