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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (3585)	4/5/2004 12:40:19 PM
From: russwinter	Respond to of 116555

Yes, the way they offset higher costs is by substituting inferior metals and plastics, then leave the price the same, and call it good. The final touch to this mud pie: have the BLS rework the new mix for hedonistic improvements, and say "productivity gains" have created a superior product made from crap. Then when it falls apart three years earlier than the last model, they can marvel at how vigorous the US consumer is when he has to go back to replace it (using a Lowes credit card). Might be some good shorts on those who have warranties on garbage products I suppose, but somehow I think that too will be part of the cost cutting. BTW, I've always maintained that not producing at all (in fact, that IS the Train Wreck) might be a "cost cutting" option, the old disappearing, scarcity trick.