CompuServe Messages

Steven, perhaps I should say that my major field is economics with a specific focus on econometrics and historical economics <BG>. A couple of problems rear their ugly head here. As you state, the price of RAM seems to be relatively inelastic and as such, increases in the price do not seem to draw much of a decline in demand. However, the situation in Japan, which is our major source of RAM chips, is that of a downward decline. Japan, as a result of certain financial misadventures, a decline in the stockmarket, and an impending collapse of the property market, is shutting down those facilities that would answer the increased demand for those chips. If the increased demand is unanswered, we are certain to face increased RAM prices. The other problem is that we, the US, are relatively unable to answer the required increases in production on our own hook. Those firms that are still involved in this arena, such as IBM, can't ramp up their production that fast, especially given hesitation on the part of the capital markets (reasonable in my opinion) towards these firms. If the above is true, we could easily be facing a severely impacted market with respect to RAM chips. Heck, Japan is actually laying off people, which is a first in a good long while. Times are a-changin'. The question is, when, where, and why? The Four Seasons of Southern California: Fire, Flood, Earthquake, and Riot.