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MLD, the supply, whatever it may be, is always constrained. The constraints may be physical -- impossible to instantaneously truck something, slow response to discover new oil, the long lead time to build a new house -- or it may be due to regulations or political constraints -- a war interrupts oil deliveries, import constrains reduce the amount of lumber -- but in either case in "the market," the price is adjusted accordingly much more quickly than the supply. Thus the market is indeed working.

by goldfish on Dec 20, 2012 9:46 am • linkreport

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