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Copper shortages and price increases
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<blockquote data-quote="asd9055" data-source="post: 2788026" data-attributes="member: 73445"><p>I am not saying shortages are not real, nor am I accusing any company of wrong doing.</p><p>Microeconomics 101, I was young, skinny and had a full head of black hair then...but still remember the lessons:</p><p>During supply disruption, price increase is automatic, price decrease when supply returns has a hysteresis (delay)</p><p>Two forms of Collusion to raise price, both illegal. Direct (cartels such as OPEC) and indirect, one limits supply, the other follows.</p><p>We see it with trucking, trucks sit idle, drivers work half time (not by their choice) and companies say there is not enough trucking available.</p><p>Now, when things are "deemed" critical to daily life according to the ruling party of the time, the gonvernment might step in.</p><p>Is copper supply disruption real? Probably, but if supply returns, unless you have over supply, prices will not return</p><p>just my Friday morning $0.005</p></blockquote><p></p>
[QUOTE="asd9055, post: 2788026, member: 73445"] I am not saying shortages are not real, nor am I accusing any company of wrong doing. Microeconomics 101, I was young, skinny and had a full head of black hair then...but still remember the lessons: During supply disruption, price increase is automatic, price decrease when supply returns has a hysteresis (delay) Two forms of Collusion to raise price, both illegal. Direct (cartels such as OPEC) and indirect, one limits supply, the other follows. We see it with trucking, trucks sit idle, drivers work half time (not by their choice) and companies say there is not enough trucking available. Now, when things are "deemed" critical to daily life according to the ruling party of the time, the gonvernment might step in. Is copper supply disruption real? Probably, but if supply returns, unless you have over supply, prices will not return just my Friday morning $0.005 [/QUOTE]
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