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To: dvdw© who wrote (73252)	4/18/2011 4:12:28 PM
From: elmatador	Respond to of 217661

Does availability of plenty low price products create in people a sense they are rich? If people go to a place, see many goods and many service providers with low prices, this, I think, give in people a sense of that they are wealthy and they start buying. But in fact they are not being rational. They are still poor. Only the fact that that low price is in front of him/her must trigger in him the buying impulse. But he gets the impulse and start buying on credit. "Oh, this might pass. Let me load." But see: the creation of this whole chain of thoughts and impulses was the low price making the head of the guy stop working. Thus the Chinese must know that. They reason: "If we put in front of the consumers low priced goods they'll buy." Someone other Chinese might argue against that and say: "No, they will not. They have little money." If we make, they will buy. It is just a matter of putting in front of them. "How that?" "Well, first they will buy some. Then they want to buy more. Then those bankers, throw in a little incentive and they will load themselves up with credit. see? the bankers providing credit and the consumer taking." he gulps a little wine. That alcohol beverage made of rice and continue. "We roll that over, sending money back to provide credit, spreading capital, and this thing will get a life of its own!!!!" This Chinese was right. The race to the bottom was on.