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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (12704)	12/19/2006 8:54:17 PM
From: energyplay	Read Replies (1) \| Respond to of 218197

Not all stories have good guys and bad guys. If the world were simplistic black and white, then GWB would be a more effective president...;-) If inventories are dropping, the Central banks can go neutral, and there is still increasing liquidity in the economic system. If inventories reach a minimum, and stop dropping or increase slightly, that will tie up free money. Inventory to sales ratios for almost all businesses have been declining since the introduction of bar codes in the middle 1970s. Inventories were a potential source of profit while inflation was running, when inflation stopped, and interest rates went to 18%, there is a big incentive to spend money to control inventory, and a great ROI. The Japanese Just-in-time inventory has been adopted all over the world. Zero Inventory was one of the big reasons for the success of Dell Computer. Transportation problems - Panama Canal crowding, Long Beach Port being full, the old Kai Tak airport - can cause inventory to back up, resulting in lower profits and less liquidity in the financial system. Big question now - Has inventory reduction come to an effective end ? Will there be no more free cash from implementing inventory management systems ?