Posts tagged: Financial
Good morning, Netizens…
All the doctors of the world have gathered together and using the most-modern technology available have examined the patient, the world’s economic health, drawing nearly the same conclusions. The patient is dreadfully sick, and it all began here, with the United States of America banking industry. It is a particularly ugly, dangerous cancer, and now it has spread throughout the entire world, affecting the world economy.
Today the Seattle Post-Intelligencer’s David Horsey introduces us to a portion of the banking industry where the cancer began, and one hopes, ultimately ends. When banks were failing, when they first approached the federal government asking for bail outs, ostensibly too broke to continue business without additional revenue, the high-flying CEO’s of these same banks were paying themselves huge bonuses and salaries despite the wretched fiscal conditions their banks were facing.
When our government magnanimously handed out what is essentially free money, over which there were few restrictions and no visible schema by which these “loans” would ever be paid back to the American taxpayers, they were hiring foreign workers while they laid off American employees.
While it is perhaps easy to paint these bankers, as David Horsey aptly has done in this cartoon, as uncaring, greedy and self-serving individuals, the ultimate question still remains—how do we cure the patient? The real backbone of the American economy has always and perhaps will always be the middle-class and small business owners of American society, who pay a disproportionate share of the taxes, provide the bulk of jobs to American wage-earners and give our economy long-term stability.
I submit that the first real test of President Barack Obama’s first term of office, nay even his first 100 days, will be how and when he excises the cancer that is threatening the global economy and has reduced the net worth of our entire nation. Without pointing the finger of retribution or blame, he must heal the patient. Fail at that, the only persons who seem certain to survive the economic chaos are those who got rich while the rest of us watched our savings and investments dissipate, while Rome is burning Nero is playing.
I feel trepidations. Do you?
Good morning, Netizens…
It was so shocking to some that Circuit City, a major purveyor of high-tech gadgets in Spokane has fallen from bankruptcy to liquidation. Circuit City became the largest retailer to fall victim to the expanding financial crisis Friday, announcing it will shut down its remaining 567 U.S. stores at the cost of 34,000 more jobs after failing to sell the business. What is the impact on Spokane?
The stores will close, and all merchandise that was originally slated to be sold will be handed off to a variety of liquidation companies beginning perhaps as early as today.. According to the AP news wire, Circuit City said in court papers it has appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators. What this means is that products which you could have purchased last month for a given price will be available next month at substantially-discounted prices.
This is, according to most analysts, the fallout from one of the worst Christmas shopping seasons in recent American history. This is yet another in a long string of high-profile bankruptcies including Mervyns, Linens and Things and Gottschalks Inc., not to mention various other national chains that have shuttered their doors.
There is a lot of information about the Circuit City liquidation at http://www.circuitcity.com/closed.html including advance notice of sales which are due to take place as early as today.
It is a sad, sad time for our national economy when one of the largest chains have closed. It does not bode well for the others.