Replies to post #87279 on Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

"Here might be the reason for the rally"
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brightness...

I assume you were being sarcastic.

"Slow demand, combined with the increasing cost of making chips, is forcing Philips Electronics to shed workers and manufacturing plants in its chip division."

Headlines like that are anything but good news for the sector and most certainly was not behind the rally in the chips and equipments. I expect you will be seeing a number of similar announcements as we go forward - virtually all the news in both sectors has been bad, with more to come.

Down the road when more capacity has been taken out and demand begins to strengthen, it will be time to look at the chips and equipments again - but not before.

Just my opinion, though.

mlsoft

[federal reserves]

Brightness> Good point. Shuttering factories

is actually inflationary, stagflationary. Nothing says that
supply cannot be reduced to increase inflation. What did OPEC
do in 98 when they had the glut and $8oil? Cutback. Now look they have $30/oil.

Sometimes I wonder, who is going to farm the land in 10 years, the average farmer is close to 55, and the younger ones don't
like the life. Without farms and manufacturing what would
inflation be like. How long can we make a living doing laundry and delivering product to stores made in China.

Similar I read because of pollution controls Gold mines are being shuttered in CA.