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


To: bond_bubble who wrote (38074)8/8/2005 2:17:06 AM
From: mishedlo  Respond to of 110194
 
In a depression what will definetely happen is the quality of the products will go down. For example, milk will be mixed with water. Farmers cost will be high compared to selling price, mixing water will be the best option for them. This phenomenon will be seen universally across all products.

Do you have any proof of this?
Past performance?

Logic to me would dictate that with so many sellers of goods related to buyers the opposite of what you suggest will happen.
That is of course until all the marginal sellers go bankrupt.
Thus we are a long ways from that (pricing pressures). You forget the immediate affects of overcapacity in nearly everything. That is a fatal flaw in your theory.

Mish