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The Coming Economic Insolvency
Sooner or later the governement debt is weighthing on the population. In the meantime the wealth of the 10% richest has doubled since 2009 thanks to QE1, 2, 3.
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I think I mentioned somewhere that I had either heard or read of the coming hard times of major US retailers, starting in 2014. And I had gotten the impression that some of these major retailers would be going bankrupt. Sears and JC Pennys comes readily to mind here.

Well, here is another reference to this in Breitbart: THE COMING WAVE OF STORE CLOSINGS TO SWEEP U.S. RETAILERS.

Quote:CNBC recently reported that such retailers as Sears, JC Penney, and Macy's are all announcing a wave of store closings. Other retailers, like Sam's and Target, are laying off thousands.

I have mentioned this to a couple of my friends, and we agree on one thing here. There is one store that is making all the right moves to head this off at the pass. And that one is Wal-Mart. Here's why. No matter how bad the economy becomes, everyone still needs to eat, and purchase essentials. And Wal-Mart is incorporating the grocery business into their store like no tomorrow. In fact, they are also opening individual grocery stores. One of them is less than two miles from my home, right across the store from an Aldis store. Both are doing a booming business. So, if you are unable to keep up economically, if gasoline is too expensive, and you are strapped economically, you will go first to a place where you can get all in one trip.




Oh, I forgot something here. The article gives several reasons for the cause of all this cutback, and loss of thousands of jobs. And they all add to it. But here is what is almost certainly the main cause.

Quote:Another factor may be that the middle class has been hit particularly hard by all this economic distress. One report from 2012 estimated that the middle class had lost 40 percent of their worth, leaving less disposable income for impulse shopping at brick-and-mortar stores.

Whatever the causes, many retailers are contracting, not expanding, and this is an indication that this down economy is not expected to get better any time soon.

The way I see this: JC Pennys is going to bite the dust. Target is in really deep trouble. After this latest fiasco, and the fact that they have not been going full bore into the grocery business, like Wal-Mart, they are terribly vulnerable. And too, those stores that do have grocery business, they are in the back of the store. At Wal-Mart, on the main entrance nearest where cars enter the parking lot, you have to go through the grocery entrance before you can enter the retail store. This is great strategic planning. S1

Sears,..........its debatable. Sears now owns K-Mart, which has lots of grocery stores in their remaining superstores. If Sears quickly makes the adjustments, they may survive.
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Also, I find internet sales eclipsing brick and mortar stores.

You want a convection toaster oven? go to the individual stores' websites - and the models you want are only available online. They will ship it to your local store - but Amazon, QVC, or similar places will sell what you want cheaper and faster with more variety and deliver it direct to your door, usually with no shipping charges. If you go to the stores to physically inspect what is available - you are limited with price and selection. Compound that with the price of gas for mileage and the lost time out cold shopping, and the decline of the box stores is a no-brainer.

What can't be done online is to take a broken part to a store to find the exact replacement. However; since most everything has an online manual with itemized part lists, even that need is minimized.
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Quote:Scary 1929 market chart gains traction

[Image: MW-BU310_scary__20140210132547_MG.jpg?uu...212803fad6]

That at least is the conclusion reached by a frightening chart that has been making the rounds on Wall Street. The chart superimposes the market’s recent performance on top of a plot of its gyrations in 1928 and 1929.

Some positive news from the Great White North...

Quote:The $2.9-billion projected deficit could easily be eliminated this year if Mr. Flaherty had a mind to do so. But the Conservatives clearly wish to bring our official return to balanced budgets out on the campaign trail with them in 2015, and so for the sake of politics we must endure another year of official deficit — though a $3-billion built-in contingency cushion could allow for an early celebration, if all else goes to plan.
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WB Wrote:Scary parallel
Yes, but the scales are not the same.
Where in 1929 they fell 30%, from 300 to 200, here we would fall from 15600 to 13200 or 15.4%.

The difference is even bigger if you consider the fall from peak to bottom: 85 % in 1929, a projected 20% in 2014.
Analysts have talked about a possible correction of 10% at the beginning of 2014 which is no far off "the Scary Parallel".
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Finally! For the first time I have been able to see so far, the Fed is Finally beginning to worry about inflation, as shown with food prices. All the borrowing, spending, and digitizing is about to Finally begin catching up to even them.

Well congratulations, the Keynesian Superstition is just that.......Superstition and not economics. Imagine that. Meanwhile MacDaddy just keeps spending like there is no tomorrow......................................
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(03-15-2014, 09:09 PM)John L Wrote: Finally! For the first time I have been able to see so far, the Fed is Finally beginning to worry about inflation, as shown with food prices. All the borrowing, spending, and digitizing is about to Finally begin catching up to even them.

Well congratulations, the Keynesian Superstition is just that.......Superstition and not economics. Imagine that. Meanwhile MacDaddy just keeps spending like there is no tomorrow......................................

Stop growing food to be burned in automobile engines at such great cost to the environment, agriculture, economy and our sanity.
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(03-15-2014, 10:31 PM)Paul In Sweden Wrote:
(03-15-2014, 09:09 PM)John L Wrote: Finally! For the first time I have been able to see so far, the Fed is Finally beginning to worry about inflation, as shown with food prices. All the borrowing, spending, and digitizing is about to Finally begin catching up to even them.

Well congratulations, the Keynesian Superstition is just that.......Superstition and not economics. Imagine that. Meanwhile MacDaddy just keeps spending like there is no tomorrow......................................

Stop growing food to be burned in automobile engines at such great cost to the environment, agriculture, economy and our sanity.

That could be one solution. But I have another one. Why not get our fiscal and monetary house in order, and not try to do things our government has no business doing.

Oh, and finally make it official, that Keynesian economics is nothing more than a mixture of economics and voodoo. S5
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Interresting opinion about Us global currency. The US couldn't rise interrest rates because... of the debts of others!

http://www.reuters.com/article/us-global...SKCN0Y20FQ
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We can't raise them anyway, Fred. The second they inch up, we're hit with a recession, huge increases in our debt due to lower state revenues and as Trump stated recently, we're going to partially default on our debt when a recession hits.

I never heard a POTUS candidate even breathe the word default and Trump is discussing how it will happen. He honestly stated the debt holders are going to have to accept less than dollar for dollar value.

This is the USA with all our advantages we have and we're discussing a partial sovereign debt default.
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Yes, but that's why Trump is nuts with such matters as economy. The US never default: They print money or mint trillion dollar coins. Debtors get less value for their bonds, true, but the $ for $ value will be religiousely identical now and in 30 years.
I don't know if it's an advantage to have a POTUS candidate talking so much non sens... but, ok, it's the USA...

About the rates, I agree and I disagree. I agree that if they raise the rates for the sake of raising the rate and they do it right now, you get a recession.

Yet, I disagree on the relevancy of your statement: They will raise rate because and after the economy heated up to a point were you have to raise rates to avoid hyperinflation and excessive private endebtment. in other word to avoid becoming a banana republic.

Also the bond yield and the interrest rates are not forcibly linked.
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Puerto Rico, the Greece of the USA?
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(05-19-2016, 06:30 PM)Fredledingue Wrote: Puerto Rico, the Greece of the USA?

We keep trying to get them to vote for going it on their own, but they keep voting it down. As long as they can suck on Uncle Sam's public tity they will continue voting to stay. Its just like Scotland. As long as they get something for nothing from their southern neighbors, why go for independence?
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U.S. fiscal year budget deficit widens to $587 billion
That puts you at 3.2% of GDP, above the EU legal limit and above that rate which put half of the european states in near-default situations.

IMO the deficit should be zero or at least not exceed 2% in any circumstance.
But which politician would like to limit the money they can use?
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(10-16-2016, 02:35 PM)Fredledingue Wrote: U.S. fiscal year budget deficit widens to $587 billion
That puts you at 3.2% of GDP, above the EU legal limit and above that rate which put half of the european states in near-default situations.

IMO the deficit should be zero or at least not exceed 2% in any circumstance.
But which politician would like to limit the money they can use?

Too many politicians love to play that old Russian game of chance. Instead of only one round per cylinder, perhaps three out of six would change their attitude. Spiteful
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