As I read this thread I see alot of people talking about deflation. My question is how do those of you who foresee deflation continuing also think the US Dollar will decline during a period like that, or Gold will rise?
It could happen but neither of these scenarios has never happened before.
As to the original post, I agree with most of you, this is just the result of a down business cycle. Everyone has to lower their prices to sell products during a recession. I have a specific example of price quotes I got for clearing and mulching a bunch of brush on my ranch last year. Daveys ( a national company quoted my $5500 and said it might take them two day. I then went to a local landscaping place who quoted $875 and got it done in 6 hours. When the Daveys guy called to follow up, I told him I had already had the work done, and what I paid for it. He went on to explain why his overhead does not allow him to be that cheap. I have also battled with the Propane suppliers who clearly have collusion on pricing going on. Unfortunately for the manager of the propane company he did not realize I am a commodities trader and I emailed him a chart of the spot price crushing his bullshit argument. Ever since then I have looked at what some people charge for certain things and almost hoped for a recession. This country has just become rich ripping each other off. This cycle will clear out all of this crap or itleast most of it. The spirit of let’s just charge as much as we can get away with has got to go.
Bailouts are something entirely different. They actually are a means of people like auto workers not having to lower their price (wages) to get paid.
I want to start a new cable talk show called Liar Liar. I will parade one politician after another also CEO’s and the minute they start lying, I will play a “Liar Liar” song out loud. When someone tells the truth which will be rare, I will play a celebration song and have balloons rise in the air.
