Just about everyone i talk to says they have no idea where all this economic doom and gloom is coming from because it hasnt affected them. I must say it hasnt affected me either!! Things are doing great where i live, in fact we just posted record shopping here as well in comparison to the last 10 years.

I agree a lot of it is played up by the media.

I think some of the big businesses and corporations are hurting, but for the most part is hasn't affected the average person. Granted there are those who have been affected, and may be struggling mightily right now.

Overall I think the majority of America is doing just fine though. The usual holiday shopping scene is evidence of that.

Let me give you people a littler lesson on economics.

Yes the profits were up, but is many factors that come into consideration and is all about the way the profits are made.

You have to take into consideration the amount of profits that were made in cash vs credit.

Cash is money at hand liquidity for the retailers vs credit that is money promised but no really pay for.

Wait about one month to see how really the profits were made, in nation in recession with so many defaults on credit how much of that purchases will be actually profits but loses.

Second thing to take into consideration

1- Profits were hurt by bargain basement prices, what this means is that while the store sold much of their merchandise how much the store lowered the prices to make the sale and how much of that can be considered profits.

2- holiday sales account for 25 to 40 percent of annual sales for retailers but this was during the holiday sales, now been the economy in recession how much of sales will be done during the rest of the year, the holiday sale can be out weight when shoppers stop purchasing after the holidays.

3- Black Friday sales increased by 3 percent over the year before. But, with prices slashed to such great extents, retailers’ profits are still behind. this means that in order to make sales stores had to lower prices more than in pass holidays that will be deducted from the profits.

4- “You’re looking at discounts of 50 to 70 percent off,” so “You have to sell two to three times as much to break even.” that is self explanatory.

5- After black Friday shopped dropped dramatically, so the weekend was not as profitable as Friday.

So at the end and with the trend due to recession is expected that shopping overall during the season will be down by 10 percent from last year.

One day of shopping doesn't account for the entire year of loses.




[edit on 1-12-2008 by marg6043]

Originally posted by marg6043
Let me give you people a littler lesson on economics.

Thanks for the "littler" lesson some of us know how it works

what I was referring to was the consumer confidence.

Consumer confidence is at all time low, and so is reflected on the markets.

Look at the markets today reaction to black Friday shopping, even with the so call good day on Friday the fact that shoppers didn't stay shopping for the entire weekend is reflected on the consumer confidence and the numbers in the markets today.

428 down the last time I looked at.

So the markets knows that things are not so good.

Yes that is true, but remember that retailers can only take so much loses before they either cut their work force or either go bankrupt.

Since last year the amount of small retail stores going out of business is staggering, this only inflates the unemployment rates.

Yes but while we are crazy for foreign goods Americas products seat on Chinese stores gathering dust.

Right now China has been hit on the retail industry as the global recession spread, they are becoming losers while American consumers hold to their pockets.

Japan is now officially on a recession also.

BTW gas prices are down but the OPEC already reduced production in October and while their "emergency" meeting this weekend they didn't came to an agreement to lower more production they are waiting for next week to do that.

This only means that gas prices will raise again as production is cut further.

Originally posted by marg6043


BTW gas prices are down but the OPEC already reduced production in October and while their "emergency" meeting this weekend they didn't came to an agreement to lower more production they are waiting for next week to do that.

This only means that gas prices will raise again as production is cut further.

true

But what is not mentioned in the press or has not gotten too much air time is the fact why prices climbed so high in the first place was a direct response to China purchasing huge amounts of oil almost in the amount that the US regularly purchases global production was not up to speed.


Cut production now and then raise it again next summer when the Chinese make another large purchase.

I work at your average run of the mill corporately owned auto shop located near a pretty big shopping mall.

All the salesmen I work with along with my boss and all the idiots at the top of the ladder were amazed Friday by the huge increase we had over last years numbers. A nearly 50% increase over last black Friday. We didn't even have any great deals or anything as we're an auto/tire shop , not a retail store. EVERYONE was buying the top of the line products and nobody was even interested in the low budget garbage like they always are every other day of the year. It was nuts and I made A LOT of money, I didn't even have to try. I've been there for four years and never seen a B.F. like this one.

BUT Its been dead dead dead since yesterday and we think that's how it's going to stay. Our theory is that a lot of people HAD to take advantage of black Friday this year just so they could afford to get gifts for everyone they wanted to. We're keeping our fingers crossed but it looks like Christmas shopping is slumping already.

My wife drug me out at 4AM to go Black Friday shopping and between trying to find parking and waiting in mega checkout lines I didn't notice a difference from any other Black Friday. I just wish the new giant Menard's complex they are building would have opened in time.

Now we are in a recesion read some of the newer posts as if we didnt know that!

Just wait a few minutes we will go to a depression and if you wait a bit longer we will be in total anarchy!