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alstry (35.28)

Soon You Fools Will Learn...Just the Facts

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April 09, 2009 – Comments (2)

During a decade of easy credit and loose spending, American businesses built too many cars, houses, stores and factories. It turns out the country built too many restaurants, too....

A few chains have boarded up already. Many others are going into survival mode, trying to renegotiate their loans, cutting staff, offering bargains to customers and closing less profitable restaurants. Analysts predict thousands more restaurants could close in the next year or two.

Since 1990, the number of restaurants and bars has grown to 537,000 from 361,000, a 49 percent increase, according to the National Restaurant Association. Population in the United States grew 23 percent in that period.

Amid the seeming prosperity of a credit-fueled era, people got in the habit of eating more and more of their meals out.

http://www.nytimes.com/2009/04/04/business/04restaurant.html?_r=2&pagewanted=2

Infecting consumers and chains with toxic debt drove restaurant growth to unsustainable levels.  Tens of thousands of new buildings were erected and prices went nuts because anyone and their mother could get a loan.  Consumers spending money the banks never had supported the Ponzi like scheme.  Now just like Madoff, the banks are telling you they can't lend money in the same gunslinger fashion they did before.  Everyday fewer and fewer consumers can spend and tens of thousands, maybe hundreds of thousands of restaurants and retailers will likely close over the next couple years.  We could see millions of job losses just from retailers and restaurants alone.

Nordstrom March same-store sales down 13.5%

Saks Inc. March same-store sales down 23.6%

Kohl's same-store sales down 4.3%

Target March same-store sales down 6.3%

Gap Inc. same-store sales fall 8% in March

BJ's same-store sales in March worse than seen

Abercrombie & Fitch March same-store sales down 34%

Wal-Mart same-store sales miss target

American Eagle March same-store sales down 16%

Dillard's March same-store sales down 19%

Limited Brands March same-store sales down 9%

Stage Stores March comparable sales drop 15%

Costco same-store sales fall 5%

AND NOW BoA is GOING TO RAISE INTEREST RATES ON CREDIT CARDS AS TAXPAYERS ARE FLOODING IT WITH FREE MONEY??????

That sure sounds stimulating to Alstry........just watch how many restaurants, retailers, and commercial real estate owners go bankrupt in the next year.  As those business close down....you should expect millions of job losses and revenues to state and local governments to evaporate.

Moody’s Investors Service assigned a negative outlook to the creditworthiness of all local governments in the United States, the agency said Tuesday, the first time it had ever issued such a blanket report on municipalities.

The report signaled how severely the economic downturn was affecting towns, counties and school districts across the nation.

http://www.nytimes.com/2009/04/08/business/economy/08muni.html?_r=2

Consumers, Businesses, and Municipalities owe Tens of Trillions of Dollars.  Now Interest Rates are skyrocketing as revenues and incomes are evaporating.....soon you too will learn that there is not enough money with consumers, businesses and municipalities to pay back the debt as the banks extort billions of free money from taxpayers.

Until we restructure debt...........be careful with your bet.

2 Comments – Post Your Own

#1) On April 09, 2009 at 10:17 AM, EHoyle80 (< 20) wrote:

The Stock Research Portal is mystified with the continuing economic optimism of the experts. Here’s how he sees the near future: “More Job Losses → Less Consumer Spending → No Change or Lower House Prices → Further Declining Consumer Confidence → Less Government Taxes Collected → Larger Government Deficits → Ongoing Recession (or worse).”

Via Stock Research Portal

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#2) On April 09, 2009 at 11:04 AM, alstry (35.28) wrote:

The bank stress tests currently underway are “a complete sham,” says William Black, a former senior bank regulator and S&L prosecutor, and currently an Associate Professor of Economics and Law at the University of Missouri - Kansas City. “It’s a Potemkin model. Built to fool people.” Like many others, Black believes the “worst case scenario” used in the stress test don’t go far enough.

He detailed these and related concerns in a recent interview with
Naked Capitalism. But Black, who was counsel to the Federal Home Loan Bank Board during the S&L Crisis, says the program's failings go way beyond such technical issues. “There is no real purpose [of the stress test] other than to fool us. To make us chumps,” Black says. Noting policymakers have long stated the problem is a lack of confidence, Black says Treasury Secretary Tim Geithner is now essentially saying: “’If we lie and they believe us, all will be well.’ It’s Orwellian."

The former regulator is
extremely critical of Geithner, calling him a “failed regulator” now “adding to failed policy” by not allowing “banks that really need desperately to be closed” to fail. (On Saturday, Geithner said on Face the Nation, if banks need "exceptional assistance" in the future "then we'll make sure that assistance comes with conditions," including potentially changing management and the board, but did not say they'd be shut down.)

Black says the stress test must also be viewed in the context of Geithner’s toxic debt plan, which he calls “an enormous taxpayer subsidy for people who caused the problem.” The fact bank stocks have been rising since Geithner unveiled his plan is “bad news for taxpayers,” he says. “It’s the subsidy of all history."

http://finance.yahoo.com/tech-ticker/article/225897/Geithners-Stress-Test-%22A-Complete-Sham,%22-Former-Federal-Bank-Regulator-Says

How long will Americans let themselves be forcilbly taken from behind?????

Soon you too will learn that there simply is not enough money to pay back the banks.  Citizens don't have the money.  Businesses don't have the money.  And municipalities don't have the money.

Don't you think bankers know this....why do you think they are siphoning money out of government as quickly as they can...because in the not too distant future.....as more and more fail......this will become visible for all to see.

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