| Warren Buffett (Little Upsilon) | Saturday, December 6, 2008 - 08:54 pm 
I think recession has finally hit LU. The prices for many products are decreasing (Oil, Electricity). Even the demand for such a neccessity like electric power has worn out. If you look at the food industry, most of them are in green. Anyone know the reason why?
Buffett |
| Wendy (Little Upsilon) | Saturday, December 6, 2008 - 10:36 pm
This may be the best theory i could put out there right now. LDI is liquidating massive stores of commodities and flooding the markets of long term rl years of stockpiling, due to the astounding opposition they now face to expel them from LU. This is just sam dumping his stores in order to cash out in prep for retirement from the game.
For many real months oil was always in shortage by about 4-6 tril tons
Electricity has always been stable commodity and in shortage of around 30 million, and reversing periodically for short spans.
Overall, i think this is a great time to buy stocks and all commodities, as it is in real life. In a few real months when things turn around, you will say how you missed a great buying opportunity. Stocks for great top public corps are at lows not seen in a century. Cement is below 100 bucks, and the listt goes on. Buy it up while its cheap. |
| Orbiter (Little Upsilon) | Saturday, December 6, 2008 - 11:19 pm
the reason for the recession was the recent game changes by W3C.
they increased the number of workers, mostly high tech for various corporations. which had a 2 part result.
1. With the higher staffing, came higher production levels, which in turn lowered demand, and price.
Along with the manual lowering of the price that came with the change, some products that where main stays of the econ, like OIL and EP, mentioned above, had the their prices cut by more than half.
2. Also with the higher staffing, many countries that ran a "tight ship," of 95% or so employment where hit really hard. Countries that had been floating as few unemployed workers as possible, where now short over a million workers... Making certain products like Furniture, and House Hold Products in short supply...
I've already noticed that the "recession," is actually into recovery, I haven't checked how many corps have closed, but as they do, and new corps are build to match new areas of short supply... Its getting better every day. Already my enterprises have mostly recovered. And some of my countries are still figuring out where they can import new workers from, but for the most part, my empire has already recovered, with out loosing any corps. |
| Warren Buffett (Little Upsilon) | Sunday, December 7, 2008 - 03:45 am
My enterprise which EP is a big part of, took a big hit. For the first time ever for me, my EP corps took loans. They are still in the midst of gathering liquidity to ride out this recession.
Did the new changes really cut the prices of those industries? Is it a permenant cut or is it just temporary. |
| FarmerBob (Little Upsilon) | Sunday, December 7, 2008 - 04:50 am
Base prices may have been reset, Warren. I, too, am divesting in power corps which had been excellent performers.
Household products and luxury goods have skyrocketed, however. |
| shane vataja (Fearless Blue) | Sunday, December 7, 2008 - 04:55 am
this will help me actualy.. but for large ceo's, large countries it will hurt them hard |
| Orbiter (Little Upsilon) | Sunday, December 7, 2008 - 04:59 am
when a similar thing happened with FMU's, i cut about 50 corps, just to have the prices come back 2 weeks later... i still regret that move.
but house hold products, and other stuff that was mediocre before, is now really stong, kinda refreshing to see more variety |
| Austia (Golden Rainbow) | Sunday, December 7, 2008 - 08:38 am
It is expected of a market to boom and bust. Hence, Bull and Bear.
cut only Pork fat corps. The Steadies will remain steady. |
| Warren Buffett (Little Upsilon) | Sunday, December 7, 2008 - 09:39 am
Well on a good note, Aircraft Fuel and Gasoline looks to have gone back to normal after a abnormally long hit. |
| Bakronesia (Little Upsilon) | Sunday, December 7, 2008 - 04:53 pm
I agree with Orbiter that we're in a stage of recovery, however, im pretty sure that a LOT of countries and enterprises were affected; especially in the food sector. for example, I had a 700B$ meat corporation that started losing money very fast, but i just thought it would weather the storm and soon recover. i was wrong and it soon collapsed. |
