|
||||||
|
|
....................................... Abnormal Characters, end of day, Tuesday, October 21.
.......... Stephen Roach explains that labor costs trump commodity prices when it comes to inflation, and that "a dramatic reversal of inflationary expectations could be in the offing."
"Notwithstanding ... highly visible moves in commodity prices and shipping activity, they pale in comparison to the importance
of labor costs in driving the ups and downs of US inflation. This should hardly be surprising. For US corporations, worker
compensation currently accounts for close to 80% of total production expenses -- around seven times the weight of raw
materials inputs."
"Like all dramatic economic development stories, China's transformation and concomitant urbanization is a very commodity-intensive activity. Add to that China's increasingly important role as the world's outsourcer, and a rebound in commodity prices and a related increase in shipping activity should not come as a shock." .......... .......... The Chairman takes yet another short position (three in the last three days) in today's Trading for Dummies lesson. Don't forget to click on an ad there to give me a nickel. I'm happy to report that last week my faithful readers pushed me over the 50 cent per week mark! .......... Check out the typeface changes at the New York Times. .......... There's a new Blogger from Baghdad: "zeyad." -- via Dynamist -- Previous Entry >>> Random Thoughts -- October 20 |
|
© 2000 - 2003
Chairman MaoXian |
|
||
|
|
||||||
