Chico's FAS, Inc. (CHS)

The economy is heading towards a deep recession if not a shallow depression. Why?





1. Budget Deficits are growing and will grow even larger as we attempt to pour more good money after bad to artificially rescue it, and the wars will continue overseas with Pakistan, Afganistan, Iraq and Iran continuing to drain our resources.





2. Trade Deficits will grow as the improvement in exports due to the lower dollar will not offset the high oil imports, and the growth in chinese and indian imports.





3. Social Security and Medicare problems have not been resolved, and will continue to drain the country as the pharmaceutical companies continue to be supported by the administration and congress and drain the country.





4. Real Estate values will continue to dwindle, foreclosures will climb to record highs, unemployment will grow rampant, which will put pressure on the budget deficit further.





5. Families will not be able to afford higher education and those coming out of college will have a high student loan balances which will leave them with very little if any disposable income.





These are just a few things which will put pressure on companies like Chico's and other high priced apparel companies for lower priced products from big boxes.