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First retail, and now restaurant spending declines dismiss remaining Hopium for the economy

When the Federal Reserve last month tried to spin the deteriorating economic numbers as a 'transitory anomaly' in their March FOMC minutes, they blatantly ignored every real indicator which showed that not only were consumers buying less, but they were also paying more due to rising price inflation.  And this rapid decline in the most important segment of the economy appears to be getting even worse now tha ...

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Bankrupt Puerto Rico votes yes to apply for statehood

On June 11 Puerto Ricans went to the polls to decide once again whether to remain as a territory, or to apply to become the 51st American state.  And with what one could consider as an extremely uncaring record low turnout, the result was a yes vote for statehood. However voting for statehood and actually becoming a state are two different things, as the island territory has voted for, and applied for this ...

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Real indicator of lower tax receipts negates ongoing fraud that U.S. companies are achieving higher earnings

Since most U.S. corporations do not have to report real total earnings thanks to their ability to function under non-GAAP accounting, it is often amusing to see when a company reports lower revenues than the quarter before, but then goes and beats their earning 'estimates'.  And according to a study by Marketwatch last year, this is especially prevalent for the top corporations on the S&P 500. Marketwat ...

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Retail chains on the edge continues to grow as number jumps from 11 to 22 in just a week

Last week we wrote about the most recent retail/restaurant chain to announce they were preparing to file for bankruptcy protection, making the managers of Joe's Crab Shack the third store conglomerate in the past 30 days to publicly cede to default or insolvency.  And now on June 9, the list of retail chains residing very close to the edge of needing their own bankruptcy protection has doubled in just a wee ...

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Collapse of retail keeps on coming with more store closures and another retail chain bankruptcy

Just a month after Sears CEO Eddie Lampert gave an extremely animated Earnings Call in which one shareholder asked him if he was 'paranoid' and 'delusional' about his belief that the long-standing retailer would soon turn things around, the once primary anchor store of nearly every mall in America is closing down 66 more stores in what has been a hemorrhage of locations over the past several years. Less tha ...

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Seattle continues to prove their goal is to drive businesses completely out

There is a nearly flawless truth when it comes to liberal government policies... they have absolutely no idea how money and finance works.  And whether it is the implementation of Obamacare at the Federal level, which has in just a few short years destroyed affordable healthcare in America, or the implementation of higher minimum wages, which are causing restaurants and other small businesses to either have ...

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Following Friday’s jobs report fail, new factory orders come in negative for first time in over a year

Following last Friday's job report in which only 138,000 were created in the month of May, another report that acts as a signal for the strength of the economy was announced on June 5 as new factory orders in the month of April declined for the first time since February of 2016. Factory orders for durable goods represent a two-fold indicator for businesses.  First, it shows how much growth in retail may act ...

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Less than three weeks after Rue 21 files for Bankruptcy, Gymboree prepares to do the same

America is seeing the death of retail accelerate before their eyes as the second fringe clothing retailer in less than three weeks prepares to file for bankruptcy protection following their defaulting on an interest payment. Gymboree is a retail chain that currently operates 630 Gymboree Retail, 150 Gymboree Outlet, 130 Janie & Jack, and 290 Crazy 8 stores in the US.  And it has already been through a f ...

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New jobs severely decline in May despite fake unemployment rate dropping to 4.3%

On Friday June 2 the Bureau of Labor Statistics issued its latest jobs report for the month of May, only to see the number of new jobs grow by even less than the lowest analyst estimate.  And then to add humor to the equation, this same government agency reported a decline in the unemployment rate thanks to slicing off 608,000 Americans they deemed no longer worthy to be counted in the labor pool. As previe ...

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Ratings agencies downgrade the State of Illinois to virtual junk

In a place where they have the largest migration of people leaving the state, and are near the top of the list for financial insolvency in the country, on June 1 the ratings agencies of Moody's and S&P downgraded Illinois' credit rating to just one step above junk. Ever since the 2008 financial crisis the state of Illinois has seen its budget deficits go up, its crime rates skyrocket, its taxes increase ...

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Congratulations! Ratings agencies give tapped out consumers a boost to borrow more money to buy thin

It has been nine years since the crash of the last housing bubble, and the advent of millions of Americans experiencing foreclosures which crushed their credit scores below the levels in which they could borrow money at a decent rate.  And since these dings on one's credit score, along with those who also may have experienced their own hits from defaulting on miscellaneous consumer credit vehicles such as c ...

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Dollar stores usurp Walmart’s place as the bellweather of retail

For years Wall Street used Walmart as the bellweather company to determine how well retail growth was doing in the U.S. economy.  But with even Walmart now closing store locations and having declines in year over year store revenues, the moniker of bellweather may be passing on to another segment of retail. And those are the myriad of dollar stores which in 2017 are now making up 80% of all new store openin ...

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