Saturday, October 06, 2007

Modest Retrenchments

Consumer credit rose by $12.2 billion in August, a rise of 5.9%, the article discussing the loss of home equity credit as the leading push. This remains the actual problem, as home equity credit will be slow to recover as a Purchase factor within the next few years. Measurement of actual lack of Consumer funds is difficult, but Wage factors are not expected to increase, and Consumer credit may charge in excess of 3% more for Credit; so that the shortage of Consumer liquidity will probably remain. Here lies additional hazard, whereby Consumer Credit agencies will become wary is the current expansion rates continue.

The world of Electronics is being upset by Legislative action. The lead in solder prevents whiskers, or slivers of metal, from springing from the fused material; but lead is being banned by Countries throughout the world. The whiskers are shorting out electronic equipment, and industry is scrambling to find a cheap Substitute. One of the major culprits may actually be industry philosophy with its dedication to Micro technology. Slightly larger connections would allow for a plastic coating of connections to prevent whiskers. I am not talking about the huge Boards of Old, but film-coating Soldering.

I should first say that I disagree with this article, but it must be Read under the principle of knowing your Opponent, and this is as well-written as Most. The Thomas Palley argument presents serious qualifications to the Free Exchange position, and it is extremely hard to deny the downward equalization of Income. The freed Corporate structure may be the most extreme to defend, as Corporations typically rely on nothing but Profits to determine policy. I perhaps remain the lonely element who perceives Tariff policy as the proper inducement to incite social consciousness in the Corporate community. lgl

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