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Price squeeze ahead

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posted on Oct, 18 2005 @ 07:44 PM
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Latest inflation readings suggest higher prices or thinner profits ahead as business costs rise.

Christmas or not Christmas splurging this year. It seems that the Christmas blues will be a hard pill to swallow in the coming year for middle class consumers around America.



A price squeeze is coming to America. The question is who gets squeezed ... Corporate America or the consumer?


So far profit margins for big corporations has keep business from passing increased prices at the check out to the consumer.

But for how long? We know that this winter it will be a squeezed on the prices of heating oil, gas prices are still high.

How long will companies will allowed a squeeze in profit margin before passing it to the consumer.

How much more interest raices Will be justifying their interest rates.

Because the squeeze we may see less economic activity during Christmas, but for those that have the cash it will be a big spending holiday due to the competition and big discounts to attract consumers.

Personally I am in the group that will prefer to cut on everything this Christmas because I don’t know what the new year will bring.

www.cnn.com...


[edit on 18-10-2005 by marg6043]




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