by ReverseEngineer » Wed 22 Oct 2008, 05:39:42
$this->bbcode_second_pass_quote('tex123', 'H')as anyone else noticed the price of laundry detergent and cat food lately? I was astounded a couple of weeks ago when a woman at Walmart said "has the price of laundry detergent gone up lately?" .
Most of the prices around here for staple goods have remained static. Food prices mainly, canned goods and fresh produce and meat alike. Goods up here however are bought and shipped quite far in advance, and also stored up before the winter really sets in.
However, I did notice the price spike in Laundry Detergent. Not sure yet why this one would be such a Leading Indicator. I do not buy Pet Food so I am clueless about these prices.
I am going to take something of a flyer here, I think there is market isolation going on. I think systems in some areas for distribution and production are still holding up, and I think part of what is going on macroscopically in the Gooberment and in the Banks is defining "Good Assets" and "Bad Assets", as in areas that still have functioning economies versus those that do not. There may be a flight of capital toward any locale that still has a functioning economy, further enriching that area while other areas are stripped of capital and a means to keep the economy running.
If this hypothesis is correct, then what you should see are some areas of the country suffering VERY badly, while others feel like Happy Days are Here Again. Consolidation of wealth around given regions, depending on the current health of the economy there and the perceptions that it can be maintained sustainably; contrasted by anondonment of marginal areas and any area really hurting right now.
I think based on this you see a vast dichotomy between those areas hit hard and those areas which seem to be progressing normally.
I will definitely stock up on Laundry Detergent though. Only have enough of that for a few more loads.
Reverse Engineer