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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: TheStockFairy who wrote (225277)	3/4/2003 1:42:16 PM
From: Softechie	Respond to of 436258

That's making MONEY!!!

To: TheStockFairy who wrote (225277)	3/4/2003 3:12:35 PM
From: Perspective	Read Replies (1) \| Respond to of 436258

Ask me again when your customers' credit cards and home equity loans get shut down. BC

To: TheStockFairy who wrote (225277)	3/4/2003 3:37:07 PM
From: GraceZ	Respond to of 436258

I buy cherry tables from China for $12 and sell them locally to furniture stores for $50 who sell them to customers for $100. Is that inflationary or deflationary? Hey, there are a lot who would tell you the US would be better off if you were buying US manufactured tables for five times as much. You and the store make more then the basket weaver except for the fact that $12 in China buys a lot more than $12 here. This is almost always the case when US businesses import goods from overseas. In your furniture example there's little value add so it is inflationary, unlike a Dell which is worth more then the sum of it's cheap imported parts. It would be deflationary if US manufacturers felt compelled to build those tables for $12 (with the necessary wage and raw material concessions) or stores felt compelled to sell them for $12 instead of $100. Some retail has mark ups as high as 1000% (carpet for one). Which means if you buy something at a 90% discount, you are still paying twice as much as the store paid.