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Dow Jacks Prices, Blames Washington
On Wednesday, Dow Chemical (nyse: DOW - news - people ) announced it would raise product prices across the board by up to 20.0% to offset the rising costs of energy, raw materials and transportation. Chairman Andrew N. Liveris blamed the United States government’s failure to develop a sound energy policy that has led to the company’s attempt at mitigating astonishing rise in energy and raw material costs.
Clearly a 20% increase is not exactly cheaper prices I must admit. Humor me though. I'm trying to be an optimist.
The price increases will depend on each product’s exposure to the rising costs associated with it and will take effect June 1.
Since today is the 28th of May, you still have 3 days to save 17%. In other words, prices right now are 17% cheaper relative to what they'll be on June 1st. Just think of it as a sale in reverse. How big of a sale is 17%? It's a HUGE sale! Back up the truck. That's NINE full years of three month treasury bill interest (1.89%)! Woohoo!
I must apologize. I never thought we'd see 20% returns on investments again. Clearly I was wrong.
I'm really liking this whole optimist mindset. Feeling good. Feeling real good.
ICE: Mortgage Delinquency Rate Increased Year-over-year in October
-
From ICE: ICE First Look at Mortgage Performance: Serious delinquencies hit
17-month high while foreclosure activity remains historically muted
• At 3.45% ...
3 hours ago
3 comments:
Stag,
We really need a wall street metaphor to put this in perspective. Here's one: we're only in the first inning of the inflationary spiral. Whoohoo, no deflation!
I'd like to hear the fed explain to the average American with a declining real income how rising CPI prices are a benefit.
Seriously. Will inflation result in lower interest rates? If interest rates rise due to inflation will housing become more affordable? Will rising inflation cause the asset deflation in stocks & bonds that Bernanke fears?
This is a bailout of a dysfunctional banking system. GRRRRRRR!
MAB,
I'd like to hear the fed explain to the average American with a declining real income how rising CPI prices are a benefit.
You wanna know how you do it? Here's how, they pull a knife, you pull a gun. He sends one of yours to the hospital, you send one of his to the morgue. - Malone, The Untouchables, 1987
Will inflation result in lower interest rates? If interest rates rise due to inflation will housing become more affordable? Will rising inflation cause the asset deflation in stocks & bonds that Bernanke fears?
And then what are you prepared to do? If you open the can on these worms you must be prepared to go all the way because they're not gonna give up the fight until one of you is dead. - Malone, The Untouchables, 1987
This is a bailout of a dysfunctional banking system. GRRRRRRR!
People are gonna drink! You know that, I know that, we all know that, and all I do is act on that. - Capone, The Untouchables, 1987
Thank you for playing the straight man as part of my twisted gallows humor.
Napalm is a Dow Chemical product. [ducks]
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