Global Economic Crisis

Business Money
21

It’s funny. I had a similar experience with M&S in the UK.

I was shopping in the summer with the wife, it was close to closing time so we grabbed a bunch of stuff that we were needing - food, shoes, clothes, etc. … it totalled more than $200 with ten minutes to go … Woops Cash not enough~! OK, let’s get out the credit cards… Woops!~ No, they only took M&S cards at the time… Ok! Run upstairs to the ms bank … oh, sorry they’d just cashed up and were closed.

And no one cared. I found a floor manager and complained loudly. But she was useless. The company just didn’t care a toss about its customers, weren’t prepared to help out in a situation of their own making, …

BTW, I forgot to say: this was a major London high street outlet with a decent amount of foreign customers coming through; it was the height of summer;…

Anyway, I had to leave the items at the checkout; and while we didn’t get what we wanted that day, it signified much worse times ahead for M&S because they were going through some very tough times in the British market and have only recently made any headway.

But it’s amazing how often a company can shoot itself in the foot: remember that!

Kenneth

22

Just remember the Roman Empire,my friend…

23

Just received this email from a viable source:A list of stores that are closing.

Circuit City (filed Chapter 11)
Ann Taylor 117 stores nationwide closing
Lane Bryant, Fashion Bug ,and Catherine’s to close 150 stores nationwide
Eddie Bauer to close stores 27 stores and more after January
Cache will close all stores
Talbots closing down specialty stores
Jill closing all stores (owned by Talbots)
Pacific Sunwear (also owned by Talbots)
GAP closing 85 stores
Footlocker closing 140 stores more to close after January
Wickes Furniture closing down
Levitz closing down remaining stores
Bombay closing remaining stores
Zales closing down 82 stores and 105 after January
Whitehall closing all stores
Piercing Pagoda closing all stores
Disney closing 98 stores and will close more after January
Home Depot closing 15 stores
Macys to close 9 stores after January
Linens and Things closing all stores
Movie Galley Closing all stores
Pep Boys Closing 33 stores
Sprint/Nextel closing 133 stores
JC Penney closing a number of stores after January
Ethan Allen closing down 12 stores
Wilson Leather closing down all stores
Sharper Image closing down all stores
K B Toys closing 356 stores
Dillard’s to close some stores

Of course, you think, this doesn’t apply since I’m in XYZ, but this is the sign of the times in the US. Stores close, lack of purchasing choice, lack of jobs, etc. I suspect 2009 is going to be a rough ride…

24

Back from Vegas. Virgin America was a great and at half the price of Southwest. The Phantom of the Opera was fantastic (place was only 3/4 full). The O at the Bellagio was incredible and full house. Vegas gaming tables were pretty full. No sign of the recession there. The shows are still expensive and the meals are still expensive, but the hotels are great values due to low season.

I dont gamble so I didnt give the casinos a dime (other then staying at the NYNY hotel , which was very good).

Theres your update on the scene at vegas, in short “recession? what recession” (in vegas anyway).

25

tommy, I’m glad you had a good time, and I’m glad thing appeared reasonably well there, but I believe you were greatly deceived, the gaming industry, like the hospitality industry in general, and like all discretionary spending, is suffering greatly and they were only putting on a good face for you, and you apparently bought it.

Did you know Las Vegas Sands Corp, one of the founders of Las Vegas and owner of many casinos around the world has lost 97% of their value in the past year? One year ago their stock was trading at $118/share. Today it’s at $3.23.

What about their competitors?

MGM Mirage is down 89% for the year.

Wynn Resorts is down 76% for the year.

Century Casinos is down 85%

Monarch Casino and Resort Inc is down 74%

Riviera Holding Corp is down 87%

My brother has been in the hospitality industry for over 20 years (buying, selling and managing hotels) and we had a very somber talk the other day. His company is devastated. The whole industry is devastated. The whole global economy is being devastated.

People continue trying to put on a good face, hoping maybe it won’t hit them, maybe it’s bottoming out, maybe it’s turning around, but they’re wrong. This is a major crisis that will hit virtually everyone around the world, except for subsistence farmers and the like who are not tied to the global economic network, as all of us are, including you.

Namahottie, thanks for posting that list. Impressive. But it ain’t over yet. Not even close.

26

I believe by 2010 we’ll see a nice upswing. And it will be interesting to study which companies and why, were able to sustain,even grow, themselves during the economic crisis.

But I’m not too happy with O’s cabinet picks. Let’s see where their interests lie…

27

[quote=“Mother Theresa”]tommy, I’m glad you had a good time, and I’m glad thing appeared reasonably well there, but I believe you were greatly deceived, the gaming industry, like the hospitality industry in general, and like all discretionary spending, is suffering greatly and they were only putting on a good face for you, and you apparently bought it.

Did you know Las Vegas Sands Corp, one of the founders of Las Vegas and owner of many casinos around the world has lost 97% of their value in the past year? One year ago their stock was trading at $118/share. Today it’s at $3.23.

What about their competitors?

MGM Mirage is down 89% for the year.

Wynn Resorts is down 76% for the year.

Century Casinos is down 85%

Monarch Casino and Resort Inc is down 74%

Riviera Holding Corp is down 87%

My brother has been in the hospitality industry for over 20 years (buying, selling and managing hotels) and we had a very somber talk the other day. His company is devastated. The whole industry is devastated. The whole global economy is being devastated.

People continue trying to put on a good face, hoping maybe it won’t hit them, maybe it’s bottoming out, maybe it’s turning around, but they’re wrong. This is a major crisis that will hit virtually everyone around the world, except for subsistence farmers and the like who are not tied to the global economic network, as all of us are, including you.

Namahottie, thanks for posting that list. Impressive. But it ain’t over yet. Not even close.[/quote]

Zowee and Holy Cow. I did buy it as you said, with cold hard cash. 1500 bucks worth (yes , I am not a high roller) ! No doubt the behind the scenes is different but the O show was packed…not one single seat and theres a long long line for standby tickets, people just hoping for someone to NO SHOW. The Phantom was not sold out though.

And the Wynn is building their “six star” , all suite compliment to the Wynn called ENCORE, opening in December I believe. People are crawling all over las vegas, restaurants are PACKED and the Casino floor is PACKED in the evenings. Prices are HIGH and not a whole lot of comp going on unless you were a high roller.

But then , this is the first time iv been there in awhile (like over 20 years) so perhaps this IS las vegas Lite after-all.

But , yes its scary, these are troubled times and everyones scared.

28

[quote=“Namahottie”]Just received this email from a viable source:A list of stores that are closing.

Circuit City (filed Chapter 11)
Ann Taylor 117 stores nationwide closing
Lane Bryant, Fashion Bug ,and Catherine’s to close 150 stores nationwide
Eddie Bauer to close stores 27 stores and more after January
Cache will close all stores
Talbots closing down specialty stores
Jill closing all stores (owned by Talbots)
Pacific Sunwear (also owned by Talbots)
GAP closing 85 stores
Footlocker closing 140 stores more to close after January
Wickes Furniture closing down
Levitz closing down remaining stores
Bombay closing remaining stores
Zales closing down 82 stores and 105 after January
Whitehall closing all stores
Piercing Pagoda closing all stores
Disney closing 98 stores and will close more after January
Home Depot closing 15 stores
Macys to close 9 stores after January
Linens and Things closing all stores
Movie Galley Closing all stores
Pep Boys Closing 33 stores
Sprint/Nextel closing 133 stores
JC Penney closing a number of stores after January
Ethan Allen closing down 12 stores
Wilson Leather closing down all stores
Sharper Image closing down all stores
K B Toys closing 356 stores
Dillard’s to close some stores

Of course, you think, this doesn’t apply since I’m in XYZ, but this is the sign of the times in the US. Stores close, lack of purchasing choice, lack of jobs, etc. I suspect 2009 is going to be a rough ride…[/quote]

urbanlegends.about.com/od/busine … osings.htm

29

Guess that source wasn’t so “viable”.

30

The answer to all three questions is the same: I have no f*cking idea. :smiley:

31

Told ya so. :smiley:

32

[quote=“Namahottie”]I believe by 2010 we’ll see a nice upswing. And it will be interesting to study which companies and why, were able to sustain,even grow, themselves during the economic crisis.

But I’m not too happy with O’s cabinet picks. Let’s see where their interests lie…[/quote]
I was, very briefly, hopeful when the rumors went out that Obama was going to pick Volcker for SecTreas. Instead, he picked another shitweasel in the Paulson model.

We’re f*cked. Game over, man. Game over.

“Hoping for spare change.”

33

[quote=“MaPoSquid”][quote=“Namahottie”]I believe by 2010 we’ll see a nice upswing. And it will be interesting to study which companies and why, were able to sustain,even grow, themselves during the economic crisis.

But I’m not too happy with O’s cabinet picks. Let’s see where their interests lie…[/quote]
I was, very briefly, hopeful when the rumors went out that Obama was going to pick Volcker for SecTreas. Instead, he picked another shitweasel in the Paulson model.

We’re f*cked. Game over, man. Game over.

“Hoping for spare change.”[/quote]

I was talking to a relative about this and he said the same. He related the whole thing to this parallel processing idea that is a common term among physiologists. (He’s one). So, anyway, the bottom line of the conversation was, America’s days of living high off the hog is over,we have to learn how to live in a global economy and O’s administration will probably be asking, well they are, asking Americans to reduce their living standards. Therefore if the gov asks us to do it, then they should do it.

34

What me worry?

[quote]Hon Hai Group (鴻海集團) chairman Terry Gou (郭台銘) said yesterday the [color=#FF0000]economic downturn was three times worse than expected[/color]. . .

Gou’s remark came amid mounting speculation that the world’s largest contract maker of electronics, along with its wireless networking equipment affiliate Cybertan Technology Inc (建漢科技), [color=#FF0000]will both trim between 10 percent and 15 percent of their workforces.[/color]

The report said Hon Hai’s Hong Kong-traded unit Foxconn International Holdings Ltd’s (富士康國際) planned to axe 1,500 staff at its Hungarian plant, and reduce its workforce at its Chinese operations by 5 percent, or between 30,000 and 40,000 people. . .

Shares of Hon Hai have plunged 64.78 percent so far this year [/quote]
taipeitimes.com/News/worldbi … 2003431627

[quote]Taiwan’s Hon Hai group plans to reduce its global workforce by 3-5 percent as the economic slowdown worsens more than expected, the group’s chairman said on Friday.

“[color=#FF0000]The worst has not come yet[/color],” Terry Gou, chairman of Hon Hai (2317.TW), Taiwan’s top electronics parts maker, told reporters [/quote]
uk.reuters.com/article/governmen … 6120081219

In other news, Polaroid just filed bankruptcy . . . again.

[quote]Polaroid, the company that created the instant camera just after the Second World War, yesterday filed for bankruptcy protection for the second time in less than a decade.

The company, which now makes digital cameras, printers and photo frames, said that it had filed for Chapter 11 bankruptcy protection after admitting that a continuing fraud investigation into its parent had damaged its own credibility. [/quote]
business.timesonline.co.uk/tol/b … 372117.ece

Too bad. Seems like their management must have really screwed up badly over the decades. Their basic product (instant photos) seems so cool, even in this modern, digital age, that it’s hard not to imagine that under better leadership (product development and marketing) they SHOULD have been a great success. Hush Puppies came back. Why not Polaroid?

35

I don’t think that instant printed photos have that much appeal, at least not to the masses and now with the digital cameras around; those are a kind of instant, too, not on paper but on a screen, and you can easily share them via email and websites.
Used to have a Polaroid long before digital cameras become available and I recall that the film wasn’t cheap, so replaced it with a compact camera and later moved on to a SLR (recently DSLR).

Anyway, back to the actual topic a friend of mine working for Foxconn has told me they are also laying off, including at their mainland factories.

36

Lots of top economists don’t believe the situation will turn around in 2009.

[quote]At annual meeting, economists see little chance recession will end in `09

. . . Some argue that the recession has just begun, despite the formal ruling by the business-cycle-dating committee that it began in December 2007.

Alan Blinder, a [color=#FF0000]former vice chairman of the Federal Reserve[/color], said the recession began only in mid-September when Lehman Brothers collapsed.

“We are in a horrible mess. [color=#FF0000]I believe it is very young and it is going to be long and deep[/color],” he said.
[color=#FF0000]Even in the first quarter of 2010, the economy will likely be weak enough to need macro stimulus[/color], he said.

Martin Feldstein, the [color=#FF0000]prominent Harvard University economist[/color], said there was no longer any basis for believing the recovery could start in the third quarter.

“I think [color=#FF0000]we’ll be lucky if by this time next year we see the economy hit the bottom [/color]and start turning up,” Feldstein said.

“In terms of the level of activity, the [color=#FF0000]end of 2009 is going to look lower than it is today[/color],” he said.

[color=#FF0000]Former Clinton economic adviser Laura Tyson said it is too speculative to predict a turnaround[/color].

“The slide may stop, but coming out [of the downturn] will not come until later,” she said. . . .

Rogoff, the [color=#FF0000]former IMF chief economist[/color], said . . . the U.S. [color=#FF0000]housing-market collapse and stock-market weakness should continue until 2010[/color]. . .

The U.S. unemployment rate should spike to 12% and those elevated levels should last until 2011, he said. . .

The root of the crisis remains the financial sector, Rogoff said. “We’re going to be seeing second and third bailouts of the big banks,” he said. . . But Rogoff said he was worried that these programs were simply keeping the financial sector on life support and did not seem to curing the underlying problems.

The Fed programs seem to amount to “temporizing,” he said.

In 2009, commercial real estate, private equity and hedge funds will suffer, he said. [/quote]
marketwatch.com/news/story/a … TNMostRead

Happy New Year.

37

Ring in the New Year!

Out with the old.

[quote]Vehicle sales in the United States tumbled more than 35 percent in December, dragging the Detroit automakers’ full-year totals down to their lowest levels in nearly half a century. . .

Sales plunged 53 percent last month at Chrysler. . . Sales fell 37 percent at Toyota, 35 percent at Honda and 32 percent at the Ford Motor Company. G.M. and Nissan reported 31 percent declines. . .

For all of 2008, Ford’s sales fell 21 percent, a difference of more than 500,000 vehicles, while G.M.’s sales were down 23 percent, a drop of nearly 900,000. The totals were the lowest f0r those companies since 1961 and 1959. . .

Plummeting demand for vehicles caused Toyota last month to project its first full-year operating loss in 70 years[/quote]
nytimes.com/2009/01/06/busin … to.html?hp

And in with the new.

[quote]Vacancy rates in office buildings exceed 10 percent in virtually every major city in the country and are rising rapidly, a sign of economic distress that could lead to yet another wave of problems for troubled lenders.

With job cuts rampant and businesses retrenching, more empty space is expected from New York to Chicago to Los Angeles in the coming year. . .

Stock analysts say commercial real estate is the next ticking time bomb for banks. . . Big banks — like Bank of America, JPMorgan Chase and Morgan Stanley — each hold tens of billions of dollars in commercial real estate securities. The banks also invested directly in properties.
[/quote]
nytimes.com/2009/01/05/business/05real.html

38

I don’t think that instant printed photos have that much appeal, at least not to the masses and now with the digital cameras around; those are a kind of instant, too, not on paper but on a screen, and you can easily share them via email and websites.
Used to have a Polaroid long before digital cameras become available and I recall that the film wasn’t cheap, so replaced it with a compact camera and later moved on to a SLR (recently DSLR).

Anyway, back to the actual topic a friend of mine working for Foxconn has told me they are also laying off, including at their mainland factories.[/quote]

I agree Mother Theresa, Polaroid still has a great niche, it’s great to be able to take pictures and give them to your friends and associates immediately. IMO they should reduce the price of the film and make everything cheaper.

39

You don’t make money / a profit by selling cheap in a niche market.

40

Haha, that’s funny… you make a profit when your income is more that outgoings. A niche global market is really a very large market indeed. People don’t want a Polaroid to replace their digital camera, they want it for fun! If it is cheap enough many people would buy it especially females.