Dearwin
The Scope
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Posted - 2008.03.28 07:34:00 -
[1]
 Originally by: Impotent Man
Of course many of you are going to attempt to point to the Patch as the cause of the increase, yet the patch wasn't released until the end of November 2007, and previous t2 ship releases did not cause such dramtic rises to dysprosium costs. So what is the cause then?
As I remember it, the second half of 2007 seemed to be full of attrition, both of end goods and the infrastructure for base good production. So a matching drop in Aggregate Supply of T2 goods and a similar rise in Aggregate Demand over a period of time is going to push Price Equilibrium up. This is a standard Negative Supply Shock matched with rising AD, anyone in the US remember going to the gas station in 1973?
Market expectation probably also had a good deal to do with it. People trying to get ahead of the game my buy up extra Dysp or hold reserves of Dysp in expectation of market demand. Remember when they announced the end of the BPO lottery in favor of invention? The BPO market very quickly shot up, and then slowly cooled as Invention began to competitively price itself with BPOs. You can also see this in real life when even ahead of the formal current sub prime crisis, investment capitol began flooding commodity markets. In the last week or so, we've begun to see that retract as the old markets for liquid capital return (Bernanke++).
The increased AD for the new T2 end goods has kept those prices up, meaning the Price Equilibrium was not out of wack, just that AD/AS fluctuated in cooperative ways to maintain PE.
Originally by: Impotent Man
Minerals can be to some extent, and this does happen as it once did with the trit shortage, however this is a difficult thing to do...
I remember ASCN used to hold on selling minerals waiting for the market to turn favorably. The reason for mineral price (relative) stability isnt so much because the market is constant AD/AS, but rather because AS/AD can move so quickly to compensate for moves on the other. This and as you mention NPC traded items represent artificial automatic stabilizers on the rest of the markets, which is part of the reason why prices on end goods have not gotten that out of wack.
Originally by: Sleyn Peade
...Down with inflation!
What you just wanted to happen is the definition of inflation. Things getting more expensive relative to the money supply at the time.
Because of increased productivity and availability of capital, market prices have had a low growth rate in spite of a booming growth of money supply. Once again this would suggest PE is sustained by fluctuating AS/AD.
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So what's my point? The markets are working, nothing going on is artificial, and there is nothing to whine about.
We can all go back to our chicken, beer and ****.
Beagle Corp Fun
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