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alstry (35.36)

Concentric Contraction

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11

May 01, 2008 – Comments (2)

This is a theory I developed a couple of years ago.  Basically a contraction in the economy to a core or center.  By the time we are done, the American Economy could shrink by as much as 50%.  Something we have never seen in our history and its effects will be very profound.

I will elaborate on the theory and how it works in upcoming posts.

The headlines today is consumer spending up in March!!!!!  The mainstream media is screaming about how great things are heading.  If you believe that, maybe you should buy some advertising from them because their revenues are evaporating.

For a real picture of the economy, listen to Warrent Buffet who characterizes as the wings being ripped off the bird in February and March.  Office Max says April is worse.  Starbucks is begging for customers.  And here comes HomeDepot:

Home Depot Cuts Growth Plans, Will Close 15 Stores (Update1)

By Michael Nol

May 1 (Bloomberg) -- Home Depot Inc., the world's biggest home-improvement retailer, cut its growth plans and will fire workers after closing 15 stores as the U.S. housing slump erodes sales and earnings.

About 1,300 employees will be affected by the closings, Atlanta-based Home Depot said today in a statement on PR Newswire. The moves will cost Home Depot $586 million, mostly in the first quarter.

Home Depot said it's abandoning plans to build 50 stores and will reduce investments in new locations by about $1 billion over the next three years.

2 Comments – Post Your Own

#1) On May 01, 2008 at 11:09 AM, CycleFreak7 (< 20) wrote:

I have no doubt the U.S. economy will continue to contract. But 50%?! That seems a bit extreme.

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#2) On March 26, 2009 at 1:29 PM, GNUBEE (27.03) wrote:

Alstry,

Unrelated, but I think you should change your "concentric contraction", to "centripetal contraction" theory.

Just thought of it this moring as I flushed the toilet.

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