Can we got some detailed explanations from economists WTH is going on with the economy?! I do NOT understand why all of these companies from Circuit City to Yahoo to the friggin' Postal Service are reporting millions - and billions - in losses! What have they been doing the past 8 years? This isn't all about bad mortgages and bank mergers either. I suspect this is the result of rampant greed that went unchecked and false religiosity cloaked in ideology by a lot of dishonest people.
It's no coincidence these companies are hitting the bricks right at the beginning of the new Democratic Administration. You know #43 and his cronies and lapdogs have been hiding all the crap under the floorboards, way back in the closet and the levees are about the break (again). Why should #44 be considered a failure for not being able to waive a magic wand over all of this?! It's a no-brainer that infrastructure should be part of the economic relief package because it's BROKEN! You can't build on quicksand.
Tax breaks for the wealthy will do nothing for those of us on Main Street....or the Alley. This is so far from over it's down right frightening. I sincerely hope all those blocking solutions because of partisan politricks get voted out of office. **Ah-nold still hasn't managed to get his Rethug legislators in line to agree on a budget for California either. No state grants for school or tax refunds. It must be nice to be really wealthy but so divested from concern about the average wage-earner. Ah, but the let them eat cake motto led to a revolution.
its actually very simple.
ReplyDeleteMost retail chains and stores operate in the red for most of the year. Right after thanksgiving, they make a great portion of their revenues. In the last three years, most of the retail chains mentioned in your post and others have had tremendous losses during the Xmas season. This year most of these chains were hit hard after already cutting jobs, stores, etc.
also deflation did a number. it seems like these stores had sales each week. they continued to dropped their prices to the point where they were not making any profits.
Most of these stores have reached the point where it is not economically feasible to continue to operate. so they will liquidate or file for bankruptcy
Hey Brother Omi:
ReplyDeleteYes I know but it doesn't make any sense to me that these businesses were able to operate like this for years. That's building on a stack of cards that one good wind could blow away. What about all the other companies? The Postal Service wants to cut back mail delivery now. That just seems insane to me! Where was the basic math and common sense? If individuals are behaving the same way as companies isn't this indicative of no checks and balances, rampant greed and zero leadership?! I mean the entire country of Iceland is bankrupt!!
Where was the basic math and common sense?
ReplyDeleteI had a job a few years ago in an independent bookstore and the owners kept complaining that they didn't have enough income coming in compared to expenses.
I knew there were loans and all, but something didn't connect in my brain. And here's why: at some very basic level, I was thinking: "well, the lights are on, the books are coming in, we have this place to rent, how bad could it be?"
The store went under.
There are so many reasons why the store went under, I am not blaming the owners (independent bookstore, small business etc).
But. The experience taught me that I have difficulty thinking in terms of debt. Which isn't surprising, since I have what could probably be accurately named a phobia of debt. I have had this for as long as I can remember.
/rambling