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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 (62212)	5/30/2006 2:26:00 PM
From: I_C_Deadpeople	Respond to of 110194

"Cars and appliances are simply a basket of commodities with some labor attached. Wrong and easily proven wrong. How much have commodities risen in the past 3 years and how much has the price of cars gone up? Dishwashers? Toasters? Stoves?" Let me give yuo an example. We bought a built in oven 5 years ago for $1099. The EXACT same one now is $1499 as we just had to replace it. A lot of the commodity costs have not completely filtered through to the end user but they will as every compnay has a 'line ion the sand'. Where I work, we make industrial coatings. ALL of the oil based materials we use have risen in price, the pure oil by products like solvents have more than doubled in three years. We have passed on price increases to our customers who in turn have to do the same. As a farmer how much combines and feeders have gone up in price due to the cost of steel. My 1998 Grand Prix was just under $21,000 - same car now is almost $30,000. GM and Ford are losing money, sure they can sell for less and lose more but for how long? And certainly the imports have been making cars more efficiently and with less labor/pension/health care/retiree cost - but if the cost of steel doubles then that gets passed or the Company eats it.