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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 (38297)	8/10/2005 9:34:43 PM
From: Fiscally Conservative	Respond to of 110194

Overcapacity. Too many goods chasing a shrinking demand that leaves an excess balance in supply? How do co.'s deal with this? How do US co's deal with this on a global landscape? We are not the only ones producing,are we? Airlines will always have the demand for their services although that demand may hither from time to time;9-11. Jetblue comes alone and fills a void. The demand is there outside of any fear the public has of flying. Auto manufactuerers,domesticly,have much work ahead. The government allowed them a loophole right after 9-11 for funding their pensions,I think. Their intervention is certainly not a hidden quantity here and on many fronts including their fight on the inflation' front. Their last fight was fought well. But what happen to the dollar? Domestic debt. The dollar. What can we infer? The longer term chart on the Fed Funds rate tells some we may very well witness yet another intervention latter on. Maybe new lows? And then again,maybe a divergence from the last fifteen years? So does one now believe that they will continue to fight "inflation" at all costs and when its effects are felt via a recession they will once again lower rates? And where,oh where will long term rates end up in the next five years? This is what Buffet may have in mind longer term although I have no way of knowing what exactly his stance is day by day. The public will continue to buy auto's although who exactly is gaining the larger market share? Certainly not our domestic co.'s Yes the void will be filled,but by who and at what expense to our nation? And then what next,tariffs? Oh,that dirty word. God forbid that our foreign competitors may make a better product (I have never owned a foreign car-no BMW here,but two Chevy paid up Suburbans)and our compatriats buy like the dickens. Where is this all going? Overcapacity? That word,today must be used in a global conceptual theme. Anything outside this is not playing fair. Outsource? Where have I heard this and what implications is its effects having on our domestic life style? Another topic I am still grappling with. Just a bunch of pent up thoughts.