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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (69995)	7/22/2008 4:18:03 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 74559

Snow, the leverage is what makes the USA economically successful [among other things]. When crude oil prices rise, it has a dramatic effect at the service station. In NZ, Oz and Europe, when prices rise, nothing much happens because the percentage change is much less. Sales drop a lot quicker in the USA and people ditch their SUVs, buying better technology, while the expensive countries just carry on with the old methods. That gives the USA an advantage. SUVs must be a bargain at the moment. For low mileage heavy haulage, they must be worth buying. But as you say, the shock is more substantial in the USA due to the leverage. That's a good thing because it means price signals mean something serious and people respond. In the heavily socialist countries, whatever individuals do makes not much difference to their lives, so they don't bother, which means not much progress. Mqurice