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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: ggersh who wrote (87882)10/23/2007 2:48:27 PM
From: bart13  Respond to of 110194
 
True - they do get passed on, but there's always a time lag.

I estimate that the lag to affect financial assets is currently about 8 weeks, and to actually show up in prices I estimate the lag to be at least 6 months and probably more. Plus, freight is not a high percentage of the average product... in other words, it's only one factor of many.

The actual pattern sure looks like a blow off to me but I have little clue how long it will go on.