With some key people out last week, I have been very lax with the blogging...only 3 post so far in April. I will need to step it up if this optimization thing is going to work.
Let's talk prices.....
My latest concern is prices for items you use every day. I have been reading over the past few month about prices of everyday items. The price if gas, bread, milk....everything has increased by a really fast rate. With the consumer consumption society we are living in, something is going to have to give. The Post had an article regarding this is issue on Sunday. They went on to point out some of the side effects of rising prices. They mentioned how people are starting to eat at home more. Local restaurants are seeing declines in dinner customers. Commuters are feeling the pinch....now that we all think that $2.89 is cheap for a gallon of gas. In fact my prices from my vendors have been raised over 50% in just two years. Businesses have finally started to move those increases to the end customer. Watch out more price increase coming.
Add onto that......many of the older baby boomers are now hitting an age where they are changing their portfolio mix to a more conservative approach. Moving dollars out of the market and into CD's or other fixed income assets. Well take a look at those rates....OK the fed has dropped the rates....but the banks have no yet sent them through to the consumer. Average CD is probably paying 3% down from 5% just a year ago.....higher prices...lower earnings
This is going to get worse before it gets better....time to buckle up and start to save for the winter Mr and Mrs. Grass Hopper.
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