Where's YOUR Bail Out?

On his blog, Robert Reich notes:

It wouldn't surprise me if many of these Americans were starting to look at the size of the bailouts of Wall Street and the bailout of the Big Three -- at the executives, well-paid professional employees, upscale creditors and shareholders, and even well-paid blue-collar workers, who are the major beneficiaries of this federal largesse -- and conclude that a fundamental principle of fairness is being violated.

These Americans aren't revolutionaries. To the contrary, they're deeply conservative. They've worked hard, but their hard work hasn't paid off. Some have tried to save, only to see their savings disappear. They're worried about the future and about their kids' futures. They never expected anything like this.

This is the angry soil in which populist backlashes can take root.

In a similar vein, the City Lakes Real Estate Blog notes:

Sadly, the expression, "you can run, but you can't hide" now describes the futility of trying to shield your wallet -- and your descendants' -- from a federal government bent on ever-more expensive and wrongheaded bailouts.

Futility leads to frustration which leads to rage. Citi may have to do more than just cancel its Holiday train display to calm the ire of the outraged citizenry.

Dec. 9 (Bloomberg) -- Citigroup Inc., (NYSE: C) the bank that’s eliminating 52,000 jobs after getting a $45 billion government bailout, canceled its sponsorship of a New York holiday toy-train exhibit visited by more than 125,000 people a year.

“The difficult decision to discontinue this sponsorship was part of Citi’s ongoing expense-reduction efforts,” Citigroup said in an e-mailed statement. Chief Executive Officer Vikram Pandit, 51, announced on Nov. 21 that he wants to cut costs by about $2 billion per quarter starting next year.

Aux armes, citoyens,
Formez vos bataillons,
Marchons, marchons !
Qu'un sang impur
Abreuve nos sillons !

iPhone Coming To WalMart. The End Of Cool?

A number of news sources report that WalMart (NYSE: WMT) has inked a deal to distribute iPhones, starting as soon as December 24.

To match WalMart's lowest-price brand positioning, those same reports speculate that iPhone will introduce at model starting at $99.00.

I assume this is the end of Mac's reputation as the super-cool tech accessory. Looks like a great opportunity for RIM to push those sexy new Blackberry touch models.

Uncle Sam's Club Bonus Points!

"More marketing, that's the answer!" So said my Uncle David when business at his auto glass company slowed down.

Now that the government has acquired major interests in many of our largest corporations, the time has come for Obama to create a new cabinet level post, the Secretary of Marketing. First order of the day will be the creation of a Taxpayer Bonus Point system, where citizens earn points good towards the purchase of any of the fine government manufactured products available from Uncle Sam's Club. Slogan: "From Autos To Condo's, Uncle Sam Has It All."

And the prices are insane!"

Off Target on Black Friday - And Death At WalMart

This reporter checked out the big Target store in the Overbrook section of Philadelphia, which borders on the tony Main Line. The crowds were non-existent. The quote of the day came from my check out clerk, who noted at 9:30 AM, "I'm bored. I've been here since 6:00 AM and there ain't no body here."

Clearly the crowds were bigger at WalMart, where at least one store associate was trampled to death by bargain hunters.

Nov. 28 (Bloomberg) -- A worker at a Wal-Mart in Long Island, New York, was killed when a throng of shoppers broke down the doors to the store early this morning and knocked him to the ground, according to local police and the company.

The event involved a temporary worker and was “a tragic situation,” Bentonville, Arkansas-based Wal-Mart Stores Inc., the world’s biggest retailer, said in a statement. “The safety and security of our customers and associates is our top priority.”

At least four other shoppers were hurt in the melee at the Valley Stream store, about 13 miles (20 kilometers) east of New York City, Nassau County Police said in a statement. The injured include a 28-year-old pregnant woman who was taken to a nearby hospital for observation and three people who suffered minor wounds, police said.

The 34-year-old worker, who wasn’t identified by police, was knocked down by the crowd shortly after 5 a.m. local time and taken to a nearby hospital, where he was pronounced dead at 6:03 a.m., the police statement said. The county medical examiner will determine the cause of death.

Merry Christmas.

Shoppers Sacrifice For Kids -- And Pets!

There's no surprise in today's NY Times report that parents--and especially mothers--are sacrificing personal expenses to afford toys for their children this recessionary holiday.

"Come Christmas, McKenna Hunt, a gregarious little girl from Safety Harbor, Fla., will receive the play kitchen and the Elmo doll she wants. But her mother, Kristen Hunt, will go without the designer jeans she covets this season.

For Ms. Hunt and for millions of mothers across the nation, this holiday season is turning into a time of sacrifice. Weathering the first severe economic downturn of their adult lives, these women are discovering that a practice they once indulged without thinking about it, shopping a bit for themselves at the holidays, has to give way to their children’s wish lists.

“I want her to be able to look back,” Ms. Hunt declared, “and say, ‘Even though they were tough times, my mom was still able to give me stuff.’ ”

But there is a bit of a double-take in the news that some families will sacrifice even kids' gifts to insure a merry holiday for the household pet.

Emilie Wilson's menagerie includes 15 ferrets, two dogs and four cats, including a hefty gray feline named Tonie Stewart who rides in style inside a pet stroller during family outings.

Wilson spent $300 on Christmas gifts for her brood last year and figures she'll exceed that sum this year. And despite the recessionlike economy, the Chicago woman has no plans to scale back pet presents anytime soon.

"I couldn't care less if there's anything under the tree for us, as long as there's something for Tonie," she said....

Market researcher Euromonitor International, which tracks sales of pet food and accessories but excludes the cost of animals, grooming, training and certain other expenses, puts this year's animal expenditures at $23.9 billion.

But the group forecasts the segment's sales are still on pace to grow more than 13 percent by 2013.

Look for Mattel (MAT: NYSE) to be offering "Barbi" chew toys soon.

As Credit Crashes, Cash Use Soars

Is the check out line at your local grocer moving more slowly these days? Look carefully, and you’ll find that more shoppers are paying with cash, and those check out cashiers are having to stop and make change.

It’s all just another sign of the (hard) times.

"Twenty-three percent (23%) of Americans reported using cash more often to pay for purchases compared to one year ago.

More Budget Conscious. Eighty-four percent (84%) of respondents who reported using cash more often than one year ago to pay for purchases said this was to help control spending and manage their budgets. Six years ago when poll respondents who used cash more often were asked the same question (Coinstar National Currency Poll Dec. 2002), only 46% said they were using cash for this same reason.”



One way to avoid those long lines is to avoid shopping near paydays. When I was a kid, we knew that the first and the 15th of the month was when most local factories paid their workers and those payroll checks got spent. Those days are coming back.

“One sign of how strapped consumers are for credit — and buying only what they have the cash for — is that for the first time in 17 years, Penney's has seen swings in spending around payday cycles over the past three months.

That's common for discounters like Wal-Mart, but a rarity for a mall-based department store — suggesting that Penney's middle-income customers are feeling the pinch as well. Penney's President and Chief Merchandising Officer Ken Hicks noted that the chain hasn't seen swings in spending around payday since about 1991, when the U.S. was entering a recession

At Wal-Mart, the volatility in spending around payday — a drop in spending in the days before, followed by spending bursts right afterward — has become even more pronounced since September. Chief Financial Officer Tom Schoewe told The Associated Press that shoppers are now unable to buy even necessities in the few days before payday.”

Sad Soup News

Despite an aggressive "soup 'n sandwich" promotion touting grilled cheese from Kraft, Campbell's (NYSE: CPB) net income has tumbled. So much for THAT strategy. Per the WSJ:

Campbell Soup Co. reported Monday a 3.7% drop in its fiscal first-quarter net income amid a commodity-hedging loss, despite strong sales gains for its condensed soups and broths business….

Gross margin fell to 38.7% from 40.8% amid the increased marketing costs…

The food company has promoted its condensed soups as a bargain buy and has teamed up with cheese giant Kraft Foods Inc. to promote meals of soup and grilled-cheese sandwiches. In the quarter, sales of Campbell's condensed soups rose 14%.

Back to Spam.