by Peleg » Sun 01 Jun 2008, 17:15:55
$this->bbcode_second_pass_quote('Drifter', 'I')'m guessing that the product manufacturers who buy from Dow Chemical will have to pass this price increase on to the consumer. Dow Chemical is one of the major plastic and chemical producers. This will probably affect the price of thousands of consumer items.
Perhaps. Dow has been insulating them from it for a while for fear of hurting demand. now that it is passed on the next tier in the supply chain may choose to burn through the war chest for a while rather than risk a sticker shock as well. Certainly they will have to start allowing some price rises. The consumers credit and equity may be tapped, but with the Fed willing to dump oodles of fresh cash into the banking system, are corporate subsidies far behind. Maybe the Fed will agee to buy Dow chemical. The corporate paper is something I know little about, but someone did tell me that it was a sign that things were not as bad as some claim. I'm not sure that makes sense since the driver of it all is peak oil. everything else we are seeing is a response to our failure to understand the future history of energy and it's very important relationship to money.