Do You think BP will survive

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Factors affecting the market supply Cost

Thursday, June 10, 2010

1. Technology, the tech as lowered its production lately since consumers are not going for more second hand product, we spoke to a technology market analyst and he told us that they are slowing production so that they can cover production cost without suffering too much lost until the market pick up again.

2. Input price., imputing the price is based on wages price, in a example of an automobile section, an input price will be the reduction in the wage paid to autoworkers lowers production cost and increase supply.

3. Price of related goods, for us to really understand the market function, we don't only look at one particular product, we look at all related product as they tend to affect each other, example if truck prices fall, the supply of cars will rise or vise versa.

Has the market turned more national ?

        Most of us investors are now focusing on Stock price more, so much that we distrust in the market, investors are  expressing lack of faith in the market, many analyst are saying otherwise but the fact is you see investors running to types of companies with solid balance sheets. Surprisingly some folks think BP is a buy, even with the Oil leak problem. BP's borrowing plan is now large as they hope to recover from the Oil leak damage, but there is no sign that BP will file bankrupt even though many outsider think the Oil company BP will not survive the next two year. What is your take on this topic?

Financial Reform Bill

Financial Reform Bill , it is crunch time now because financial regulatory will not have much influence on the market because of what is going on in the market world wide, it may not even affect the last hour of trading.