Tuesday, September 30, 2008

Super holiday crash spectacular

I think the coming months might get pretty ugly. I also think the Senate should stop using the term "bailout". Maybe we should start calling it something else, like "the holiday fun and cheer bill". At this point, without some assurances to our flaky capital markets, we're going to see a pretty ugly holiday. Companies that are already on edge, say Sears, Kmart, Circuit City, may well be breathing their last breath this year. Without capital to stock their shelves full of new goodies, this could be a pretty lackluster holiday for them. Not a good thing when large retailers usually depend on these coming months to put them in the black. Then again, who can buy? Most banks may, in the coming weeks choose to cut your credit limits. By how much I'm not sure, but they're already starting to do this to retail businesses. With the closing of retail outlets or bankruptcies of entire chains ahead of us, how well will ouy local economy absorb this new wave of unemployed? Also, how well will we be able to absorb a potentially large wave of homeless in the coming months? This crisis couldn't have hit us at a worse time. This was a bulls-eye for the gods of peril.

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