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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 (69002)8/29/2006 10:03:22 AM
From: Mike Johnston  Read Replies (2) | Respond to of 110194
 
Check out the "psychology on burgers". Prices dropped from $7.99 to $4.99.
Hmmm is that a drop of $3 or 37.54 percent?


It is way to early to talk about deflation:

1. A 4.99 hamburger , is it a permanent price cut or a temporary promotion or a loss leader ?

2. How can you call falling house prices deflation if you did not call rising prices inflation ?

3. Japanese inflation came in below, because they changed the basket, to make inflation look lower.