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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (55515)	8/29/2006 1:28:27 AM
From: mishedlo	Read Replies (2) \| Respond to of 116555

What is it that you do not understand about the price of a 1/2 lb burger dropping $3 in price? Was catfood substituted in that Bennigan's burger? Is the portion at outback on steaks smaller? Yes, "CAKE" cut back portion size but I have never see a "CAKE" restaurant in my life. Where are they? What about nail salons dropping prices to $9 from $10. Now I can not claim that is national or even regional as I do not get my nails done ever. It was a comment from a reader. I find it odd (actually not odd since it was expecxted) that now that home prices are falling that inflationists are touting rents. I will not let people play this both ways. If rising home prices were inflation then falling home prices are deflation. If price hikes at bennigans are inflation then price drops are deflation. Personally I think it is a lot more complex than that (or a lot simpler) if one understands what inflation really is. Personally I do not think it is about prices but for those that do, I am now willing to talk prices. Prices are falling and I expect them to fall further. No one sees what is coming. Consumers do. Finally. They stopped eating out. Not totally but restaurant sales are going to hit the same brick wall as houses. Nail salons too. For that matter, I bet the cost of an education at long last starts dropping. Prices in general have nowhere to go but DOWN as the economy weakens. MIsh