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


To: sea_biscuit who wrote (69311)9/23/2007 3:05:31 AM
From: mishedlo  Read Replies (2) | Respond to of 116555
 
It is not that simple
1) profit margins can shrink
2) suppliers can be squeezed
3) if there is no demand at those prices, prices will drop and I do not give a damn what the input costs are.

Prices cannot rise (long term) above peoples ability to pay for them, regardless of what inputs costs are. Housing is the perfect example.

Mish