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Since we do not have an "Economics Forum" any more [:tongueangry:] and since most economics word search came up in this forum, l am putting the SCARE here.

l have been doing some reading on US Retail failures after the dismal reports coming out from Macy's, Dillards, JCPenny and other department stores. Not good. You can do some quick reads for this past week in business sections.

BUT, what l am wondering about is WHY ?  Competition is so fierce that some store chains will fade away, yet most are suffering. And not just because the Shopping Mall Model from the 1950s has been failing since the 1980s. Nor because suddenly AMAZON is 'killing-the-competition' at half-snail-mail-pace of shipping as there were substantial catalogue sales for Sears and other companies all through the 20th Century.[Full snail-mail-pace: mail-in-order/payment, ship-back].

OPINE: It is because there is no more money in younger people's pockets. Older customers, too.  Credit cards running on 'Limit', student debt, car debt, high housing costs, rising bread prices, and so on ad nauseum.

There are two videos in this link. One is ~6 minutes and is about student debt, JPMorgan and ABSs. The other is ~42 minutes which some notes follow:

"snowball lending" at the beginning.

Real Estate Bubbles @ 11 minutes. Vacant homes in London. (DW,12Aug17 reported that Hong Kong prices went up 20% in April year-on-year )

"nothing is backed-up" 16:20 --nearly everything is computer created digits and securities-on-borrowed money.

"deposit money creation" @30' [or as l call it: "push button money] :shock:ing

Opine @ 36:15  use of the word "fair" should be "stable"

As the film says, we have impending "wealth destruction".


In Feb2009 the assessment for the end of the Great Recession was calculated to be 10-to-12 years from then. ld est, 2019-to-2021.

For another unnerving video or transcript, PBS Charlie Rose, Monday07Aug17 interview with Financial Times  editor Gillian Tett who said in the course of the session that after the 2008 Financial Crisis started, she started getting calls from bankers asking her what some financial instruments are, such as ABS, MBS, swaps and so forth.

Edited by hasanhh
Tett addition

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ln addition to the above,  DineEquity announced this week that they will be closing restaurants. One reason is they have failed to attract Millennials (born 1985-2000). http://www.chicagotribune.com/business/ct-millennials-applebees-20170811-story.html 

And it is not just the DineEquity chain. http://www.foxbusiness.com/features/2017/08/11/its-not-just-applebees-other-restaurants-are-closing-shop-too.html 

For an easy read as to their predicament, http://www.indystar.com/story/entertainment/2017/07/13/why-indianapolis-restaurants-closing/434873001/ 

Non-chain, "chef restaurants", and small chain restaurants close also. Most often this is because Public Health authority shuts their doors for "vermin infestations". Sometimes it is retirement, family issues or maintenance (example: not enough hot water).

This cycle of closings has also occurred in 2011. To summarize the Forbes article, "This Restaurant is Closed ..." which is a slide show, in 2011 these chains and their number of closed locations are:

Quiznos  --334

Starbucks --310

KFC -      --275

Arby's   --86

Sbarro --70

Baskin-Robins --43

Burger King  --33

Church's Chicken --33

Long John Silvers' --32

Dairy Queen --26

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On 8/12/2017 at 8:16 AM, hasanhh said:

Since we do not have an "Economics Forum" any more [:tongueangry:]

The description for the Science forum:

"For science, technology, economics, finance, business, medicine, engineering, and topics of professional development."

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