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More Proof that All is Well



May 31, 2008 – Comments (5)

Rising Costs Spur Kodak
To Increase Some Prices

May 31, 2008; Page A3

Eastman Kodak Co. said it will increase its prices on certain consumer products by as much as 20%, citing the soaring prices of raw materials and the rising cost of petroleum. Kodak became the latest company to boost prices, following moves earlier this past week by chemical companies Huntsman Corp. and Dow Chemical Co., which are raising prices as much as 25% and 20%, respectively.

Thanks so much, Bennie and the Inkjets.

5 Comments – Post Your Own

#1) On May 31, 2008 at 3:44 PM, dwot (28.99) wrote:

Yup, it is bad...

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#2) On May 31, 2008 at 4:13 PM, alstry (< 20) wrote:

I don't think people have a clue how bad things may get. 

The problem is that revenues are shrinking everywhere.  Revenues were so strong in recent years because borrowing supported spending and rising costs.  But now credit is being cut off everywhere.  Fewer are able to borrow and those that can don't need to. 

But costs are skyrocketing as your post demonstrates.  Plus the debt that accumulated over the years must be serviced and rates are now rising.  Debt is sucking a HUGE percentage of revenues.   As revenues shrink, that percentage is increasing daily leaving less and less money to spend on other things.  Couple that with rising costs and the result is toxic as heck.

We have never faced anything like this in American history.  In the Great Depression, debt was at relatively lower levels than they are now.  Back then, incomes dropped because banks cut off credit.  Now, incomes can't support debt and the banks are cutting off credit AFTER the debt has been accumulated.

It is an absolute mess.

More and more defaults are around the corner.  Defaults create distressed assets lowering the value of assets around it.  Defaults will occur at every level including municpalities, business, and individuals.  Revenues are shrinking for all.  Just take a look at the rise in tax delinquencies and falling property and sales taxes.

Do you think municipalities debt levels and expenses are falling?

Shrinking revenues and rising costs......much harder access to credit......a new month is starting so we should seem some more carnage as those that can't meet end of month obligations fail.

At the end of June it should be a lot worse as end of quarter obligations come due.

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#3) On May 31, 2008 at 4:57 PM, bingobum (70.79) wrote:

Income after taxes must of been quite different in 1920's. What if we can ever go back in time to fix all the regulations or do we need the regulations?

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#4) On May 31, 2008 at 5:54 PM, wolfhounds (58.93) wrote:

Nobody even mentions the service sector. Rising costs will hit the consumer as many of these services do have pricing power.

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#5) On June 01, 2008 at 8:48 AM, XMFHelical (< 20) wrote:

I'm currently out of SIAL partly based on concerns of raw material costs for their chemical business.  But long term its a good company that I hope to get back into later.


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