Lemme see if I understand... Walmart is going to cut prices on stuff nobody is buying. When they can cut the price of a TV down to about the cost of a can of beans... I might be tempted to skip a meal.
Isn't the "slashing prices" just a normal, seasonal thing, to make way for Fall inventory?
In normal times, this would be normal, but not sure we are back to normal times.
It may spread to many areas. A lot of the reports we hear are generally upbeat in stronger sales, etc. but are usually not adjusted for inflationary impact. The blue dots are heading upward, yet after adjustment, the amount of goods is decreasing. At some point the bullwhip may spread, in my opinion... and then we will have that recession, maybe.
Here in Toronto on Face Book Marketplace, there are a number of ads running, offering FREE hand sanitizer by the case of 48 bottles, come and take as many as you can carry home. N95 masks are being offered 10 for $5. Disposable gowns and gloves are also being offered at bargain basement prices. On the other hand, the Bank of Canada has just raised the interest rate again, to 3.5 percent, which means that the mortgage rates here are at 5.5 percent. This rate increase has cooled the housing market by a considerable amount, with year over year sales numbers down by 24 percent across the country. The recession fears are looming. JimB.
It’s my belief that after looking at all the data and how recessions acted in the past, we “may” see the effects of a recession come the first quarter of 2023. I am not an economist or an analyst, but past recessions have been felt by the people in the second or third quarters after two consecutive quarters showed negative growth. This is just my view. I have nothing from the internet to show that I may be right.I don't buy the notion that this time it's different due to disruptions in the supply chain or that the economy is simply shifting gears to some sort of pre-pandemic normal.
I believe that we will experience some form of recession.
The question for me is when it will hit and how quickly we can expect to recover.
When the consumer loses their ability or willingness to continue spending and can no longer support their debt in the face of inflation the economy will cool and the stock market will drop.
Some pundits believe that the Dow will drop to around 27,000 points as the average investor reaches the point of capitulation and scrambles for the exits.
“The four most dangerous words in investing are: ‘this time it’s different.'” – Sir John Templeton
Some folks say 2 quarters. The pundits say the great recession started in Dec. 2007 and ended in June 2009. It wasn't until 3rd and 4th quarter 2008, we had back to back negative GDP.
That number needs perspective... https://fred.stlouisfed.org/series/U6RATE
This is not a good thing. The government blames a lot of it on the Russia-Ukraine war. Others blame it on our economic policies. Take your choice. Most economists that I have heard on CNBC and FOX Business say that with all the money handed out during the start and during Covid was also to blame. I think with all the money that we received and those with children did even better has to be included as a contributor.
Maybe it's time to get rid of your 4 X 4 with the dual tires on the rear and dragging your big boat behind with the quad behind. Time to "cut the fat" and buy a 4 cyclinder and "save on fuel."
Well sure... just as soon as you point out that 4 cyl gas saver that'll do all my chores for me.
Looks like you are the one "fueling" those profits.
Yes, and not particularly enjoying it. Not sure I should keep any more cattle as this stuff is breaking me.Looks like you are the one "fueling" those profits.
If we are using Walmart as an economic indicator, we are slipping back into the stone age. They just have to much inventory and need to move it. Now if they wanted to show us the economy is doing great, they could donate all that surplus and get a huge tax break.
Of course we are!
