This site explores
economic changes over recent decades &
anticipated inflation, deflation, supply,
demand, availability of products & services.
Globalization is bringing
new opportunities in new markets
for existing & new products & services.
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Perspective |
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If you
think the decline
in the DJIA
from the October, 2007
all-time high was severe,
consider the following
quantitative history of human
psychology. |
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The DJIA's all-time
high reached in October, 2007, faded
throughout 2008 to
the low
reached in
March, 2009. |
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September
3, 1929: The DJIA reached
381.17, the
closing peak for the bull market of the
1920's. |
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October
28, 1929: The DJIA lost 38.33 points to
close at 260.64, losing 12.8% of it
value. |
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October
29, 1929: The DJIA lost 30.57 points to
close at 230.07 losing 11.7%. |
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Over the
two days October 28 and 29, the total
DJIA loss was 24.5%. |
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October
30, 1929: The DJIA rose 28.40
points to close at 258.47.
That was
12.34%, the second largest
percentage gain of the DJIA. |
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October
6, 1931: The DJIA rose 12.86 points to
close at 99.34, largest percentage gain
of the DJIA, 14.87%. |
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July 8,
1932: The DJIA fell .59 to close at
41.22. The decline from September 3,
1929 to July 8, 1932 totaled 339.95 points, 89.19%. |
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It
was not until 1954 that the DJIA
returned to the all-time high it had
reached on September 3, 1929. |
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Beware of
false valuations that have been created
through arrogant and ignorant
market participants
groping
for bottoms. |
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Pumpkin Stuff
Shortage |
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The Nestle company
manufacturers most
of the canned
pumpkin product sold
in America. It
markets these
products under the
brand name Libby. |
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Nestle's Libby
announced that there
may not be an
adequate supply of
canned pumpkin
product for the 2009
holiday season.
Libby stated that
its production of
canned pumpkin
products may be sold
out before the end
of the holiday
season. |
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This is one of the
first shortages in
food products to hit
the United States
since World War
II. It will not be
an anomaly. |
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Americans should
expect more
shortages because
manufacturers are
conserving resources
-- that is, cutting
back on production. |
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Americans should
expect additional
shortages in
many product
lines and in various
other manufactured
and processed goods. |
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Manufacturers will
continue to scale
back production,
consumers will
continue to buy
less, and the
downward
economic
spiral will proceed. |
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This sort of
downward spiral in
production is a
result of increased
taxation
on businesses
during today's
recessionary that
forces businesses to
reduce labor costs
which results in
people losing jobs
which results in
people having
lowered or no income
which results in
consumers' growing
inability to
buy products and
services which
results in
businesses laying
off additional
workers who
produce products and
services that
consumers are not
buying. |
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Amidst the coming
shortages, people
will long for the
gasoline lines of
1973. |
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Where Have
The Men Gone? |
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Many businessmen have experienced cash
shortfalls and operating difficulties. Those men worthy of
managing businesses find creative ways to maneuver their company
out of financial and operating difficulties. Even owners of
service businesses can successfully maneuver, avoid bankruptcy,
and grow their company into prosperity. |
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General Motors celebrated its 100th
anniversary in September, 2008. |
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Men starting with William C. Durant, GM's founder,
overcame bigger problems than those facing GM today. |
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Please
identify any concerns you have regarding
the globalizing economy. |
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Relaxing Toward Deflation |
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Economic
indicators go up and down. The only certainty is that they will
fluctuate. Fears of inflation returning in its 1970 through 1982
mode should abate.
Read the
story. |
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