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To: Bid Buster who wrote (207786)	12/3/2002 8:05:48 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 436258

I could give you a fair amount of anecdotal evidence where computer networking equipment has been steadily decreasing in price for some time. It was a necessity on two fronts. 1. end users simply didn't have the money to buy at full price, so margins have been getting squeezed relentlessly 2. to gain market share, competitors have been waging a price war that further erodes price. (of course, this too can be a function of item #1) And if the finished goods producers are getting squeezed, you can assume that the component vendors are getting squeezed too. And if component vendors get squeezed, then they are going to squeeze raw material vendors. etc.... I am not necessarily arguing the deflation/inflation question, but I am aware of price erosion in quite a few areas. And where some may dismiss it as "well, that's tech, that's different". I think it is clear that, if a big enough sector is getting price erosion, that the trickle down theory can be applied.