2A. Where are my Bones?

08/21/2009

It’s the third Friday in the month -- stock OPTIONS day for those in the stock market who have the dollars to risk in Option trading. But, for me, it’s when my master goes to the local meat market for the ham bone. For just $1/lb. he can buy left over bones from beef or ham that the more financially fortunate order removed before they buy their meat. Yummy! They make soup and I get the bone. However, today when he got home my head dropped to the ground and my tail searched my stomach between the legs -- I slowly sulked back to by bed. NO BONES! As I understand it – I am a smart lab with acute senses remember – the government had a special incentive program (for the middle class and wealthy) where if they had a bone to trade in they could get a very large quarter of beef for about 20% off. So, they bought a smaller piece of meat with a bone in it, ate all the meat, they returned the bone for a larger chunk of meat. And where are the bones you ask? According to the government program, they had to be thrown away.

Could all the middle class take advantage of this program? Some still couldn’t afford the new, larger quarter of beef at 80% the cost. Plus, the wealthy could have cared less – they continued to by whole animals butchered and packaged to their desire. But a hoard of middle class people did. Their freezer is now full for a while – and my bone supply has plummeted! There were some bones explained my master, but at now $5/lb he could no longer afford any – you see, baby Flo needs her milk! So, why do they cost $5/lb now when they were $1/lb.? Good old Supply and Demand. If there is an equal or greater demand for a smaller inventory of supply, the prices will rise! Simple economics – surely you already understood this. If you didn’t realize it in economic terms, surely your Common Sense told you that.

I believe I recall a similar government program called Cash for Clunkers pertaining to cars. Good for those with an old car in hand and the money to buy new one, but bad for we poor folks (and dogs) who financially can’t take advantage of it. The double whammy for us is that we can’t even afford a used car now since the government ordered the trade in clunker to be trashed and not to be added to the used car Supply. Hence, the smaller inventory has just gone up in price. Higher Demand chasing lower Supply. Well, I sure this is helping the American Auto industry. What's that? The majority of cars being bought are foreign? Hmmm -- I mean grrrrwl!

Guess I get to lick the linoleum spots for next few days. I think I have a bone buried in the farmer’s field. Hope its still there and not too rank. Meanwhile, apply your Common Sense to the long-term impact of the Cash for Clunkers. Don't forget to consider who is actually paying for the the clunker trade in -- not me, I'm a dog. Hint -- U.