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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (19569)10/7/2004 2:27:15 PM
From: russwinter  Respond to of 110194
 
<FINALLY going to TRY and raise prices just as housing is stalling in the US.>

Either that or start going out of business, as it sounds like they've gone through reserves (or done their crony borrowing to stay afloat), and old inventory (FIFO, old inflation trick in the 70's for us oldtimers).

Now we have almost cleaned inventories and have therefore to reflect the increased cost on the price of newly manufactured products," Chen noted.

I think many will start doing the later (fail and go out of business), it's the definition of the Train Wreck. Fortunately for the Wizards, they can call all the shuttered up businesses, "output gap" or "excess capacity". I also wonder how they maintain depleted inventories with only 136,000 MT of copper inventory, etc, etc, left on the planet?