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To: notorious vrc
Please interpret what this means.

The 'producers' (companies and industries that make the stuff listed on the left), are being paid less for what they sell...their prices have fallen.

Their prices have fallen, ostensibly because their customers won't pay more, ostensibly because their customers can get as good or better deals from other suppliers.

Generally, there is an excess of supply because there is an overcapacity of production in the world and US, and slack demand because not enough producers' customers need or want what is being sold, because in turn consumers are spending less and need less...etc.

So when consumers demand/buy less it trickles back down the food chain and producers are forced to lower prices to sell what they already have made.

Essentially supply exceeds demand and prices fall.

4 posted on 12/12/2003 7:23:38 AM PST by Starwind (The Gospel of Jesus Christ is the only true good news)
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To: Starwind
Essentially supply exceeds demand and prices fall.

And then you see that ol' lagging indicator - higher unemployement. Oh wait, we're already seeing that.

5 posted on 12/12/2003 7:28:05 AM PST by Jim Cane
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