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alstry (35.02)

Retail Sales Terrible!!!!!

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June 12, 2008 – Comments (5)

From MarketWatch:

Retail sales jump 1% with boost from Uncle Sam

Sales were boosted by higher gasoline and food prices and by eye-catching gains at building materials stores and furniture stores. ....

Excluding the 2.6% rise in gas station sales, sales increased 0.8%, the biggest gain in a year.

http://www.marketwatch.com/news/story/economic-report-retail-sales-jump/story.aspx?guid=%7B09D65D52%2DB0E5%2D441C%2D9AA9%2D6709FF648D75%7D&dist=hplatest

Retail sales were up only .8% INCLUDING FOOD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Has anyone been food shopping lately?  What percentage of a consumer's retail budget is food?  WalMart, Target, Costco and even Dollar Stores are allocating a bigger and bigger percentage of floor space to food. 

Have you noticed manufacturers are putting fewer ounces in the same size bag for the same price?If food prices are up 15% and sales up only .8%, is that good after a stimulous program? 

 Heck no.  It sucks bull balogna. 

We have contraction everywhere.  Costs are skyrocketing.  Truckers in Europe are blocking boarders.  In other countries people are dying in the streets rioting over food prices. In America, in a number of new home communities, early buyers are being abandoned by developers leaving half built weed infested wastelands.

You think a 1% rise in retail sales is good after a 15% rise in food prices and a $100 billion dollar stimulous program?  Anyone see the unemployment data today???? 

No wonder Johnny can't read!!!!!

Where are the bull Chimps????  Too busy saving up to afford bananas?

5 Comments – Post Your Own

#1) On June 12, 2008 at 10:50 AM, EScroogeJr (< 20) wrote:

You're dead on on food. It's a most ordinary agflation that does not portend anything positive for the real economy. Except, the economy that is reflacted in stock market returns is bogus anyway.

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#2) On June 12, 2008 at 10:57 AM, eldemonio (98.60) wrote:

Nice work.  We have all become a little more stupid during the last few years listening to experts tell us that any increase is good. 

The only retailer gaining ground right now is Walmart, and their success lies in attracting desperate middle class families who were used to shopping at other, more expensive stores before having to "rollback" their standard of living.

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#3) On June 12, 2008 at 3:58 PM, jesusfreakinco (29.07) wrote:

Good call Al.  Thanks for the blogging :)  It helps bring perspective.

Another good source of perspective is www.jsmineset.com.  Sinclair has been spot on with macro, commodity, and financials calls. 

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#4) On June 12, 2008 at 4:06 PM, alstry (35.02) wrote:

Sinclair and I differ on where gold is going....but other than that he and I are pretty much agreeing.

 

That said I have no clue where gold may go because it is simply a perception issue.  If people still view gold as wealth, the sky is the limit...if not...it is a very heavy metal to carry around without much functional use.

Today 10 year  broke 4.20 with the dollar strengthening and oil rising.  All rules out the window now.

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#5) On June 13, 2008 at 2:40 PM, thisthatother47 (89.85) wrote:

Retail up 3.8B after 48B in stimulus checks were sent out - where'd the rest of that money go...

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