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November 12, 2008

"Consumers Are Running Scared"

Now there's a bold grasp of the obvious

For now, consumers are running scared, and so no good news may be expected today when retailer Macy's (M, news, msgs) reports third-quarter earnings before the markets open today, with a conference call scheduled for 10:30 a.m. ET. Analysts expect a loss of 19 cents per share on revenue of $5.5 billion.

Department stores like Macy's, already hit by weak consumer spending, have been reducing prices drastically. But even with lower prices, same-store sales at Macy's are down 6.4% for the month of October -- same-store sales are sales at stores that have been open for at least a year. Macy's has already said that further sales deterioration can be expected in the next two quarters. Macy's began restructuring in February by slashing 2,300 management jobs.

Can someone explain to me why American Express (a company whose Travel Service I love, btw, as they arranged our fantastic trips to Scotland and Alaska) should qualify for a Government bailout?

Who the hell doesn't qualify these days?

Well, aside from us poor saps the taxpayers, obviously.

Posted by Mr. Bingley at November 12, 2008 08:35 AM

Comments

>>Who the hell doesn't qualify these days?

Me, that's who. And you. And every other taxpayer, as you say. We instead get the privilege of "buying stock" in these shite companies without a hope of ever seeing a dividend.

Every politician involved with this needs to be publicly flogged and reassigned to roadkill-picking-up duty.

Posted by: Liberty Girl at November 12, 2008 09:07 AM

AMEX is trying to qualify because they recently turned themselves in to a bank holding company but it's unclear if they got the holding company status before they requested bailout money. Go figure.

Maybe the only way we poor saps should also become banks, then we might qualify for some of this endless stream money.

Remember when the politicians were screaming that we had to 'fix' social security lest we put our childrens' future in hock??

Posted by: Retread at November 12, 2008 12:26 PM

"Maybe the only way we poor saps should also become banks, then we might qualify for some of this endless stream money."

We ARE the banks, Retread, ... cept we won't get paid back.

Posted by: Rob at November 12, 2008 01:42 PM

Hey, Rob, we're a failing bank!

We qualify!!

Posted by: Mr. Bingley at November 12, 2008 02:02 PM

Frickin' A.

"Why aren't people going out shopping? Why aren't people supporting the economy by spending?"

Because we all know that bailout-time is coming, and we're too busy bending over to kiss our assets goodbye.

Macy's can go under for all I care. So can J.C. Penneys and Sears and Kohl's and all of 'em. I sure as hell ain't "bailing out" any retailers; banks and automakers are bad enough.

And if all the clothing stores close? Well, I know how to sew, so I will be a particularly desirable person in this Brave New World...

Posted by: ricki at November 13, 2008 10:52 AM