Thursday, October 11, 2007

Let Them Eat...Whatever

This will be a very short post.

WalMart announced today that it will do slightly better earnings-wise despite mediocre sales (+1.4% for same stores) because it was able to cut costs. Other stores are not doing so well. Ho-hum.

But what about Wall Street? How does it see these news? My award for this week's crassest statement in the face of human misery goes to a Mr. David Abella, an analyst with Rochdale Investment Management LLC which manages $2.5 billion in assets, including WalMart shares.

``People still have to live their lives. It's not like somebody forecloses on their house, and then they just decide they're not going to eat that month.''

He really said that, look it up in Bloomberg - I am too sickened to provide a link. He doesn't care if people have no place to live, they STILL have to shop at WalMart where he is a shareholder.

For his children's sake - assuming that such a heartless man could attract a female long enough to procreate - I hope he never has to face the sheriff's deputies come to evict him.

My God... Has Wall Street sunk so low?

37 comments:

  1. When was Wall St. not that low?

    ReplyDelete
  2. OT, but

    You care to comment about the new commodity linked and emerging market linked CDO?

    Story here

    Will it be enough to push inflate another bubble?

    ReplyDelete
  3. There is a difference between Wall Street being low (always) and appearing in public to be low (only rarely). The latter shows an increasing lack of sound judgement, typical of triumphalism...i.e. a bubble (Masters of The Universe version).
    --------
    re: commodity linked CDO.

    Next is a DBO: birthrate debt obligation. It will be lots of fun to hold the equity tranche and push it to make extra returns.

    ReplyDelete
  4. The lowest thing I ever heard about Wall Street types was a comment in a Alan Abelson's column from about 35-40 years ago. A newspaper article was about the increase in heroin users and one of Wall Street's finest commented " Who makes the needles" I've never forgotten that whenever dealing with anybody from wall street.

    ReplyDelete
  5. Dear "Hellasious",

    > Which takes us back to the
    > "bubble" theme. So far China's
    > authorities have not been
    > effective in popping its asset
    > bubble through half measures. I
    > fully expect the next step is
    > going to come soon and it WILL
    > be effective.

    I don't believe that this is possible at all.

    The Chinese Communist Party (CCP) worries constantly that they'll be kicked out, just like the Russian Communist party was in 1991. They study the Russian example all the time to the point of paranoia. And with tens of thousands of regional rebellions occurring in China each year, they're not going to take any radical steps that will risk a larger rebellion or social instability that they can't control, which is why they won't do anything that might harm exports.

    I foresee something quite different. Nothing will happen until a major financial crisis occurs -- probably beginning with a stock market crash in New York, Hong Kong, or Shanghai. Within a few weeks, both the American and Chinese economies will be in desperate shape. At that point, China will actually do everything it can to save the American economy. They'll lend us money, forgive all previous debts, even announce that they won't redeem all the Treasuries in their portfolio, in order to save the Chinese economy, and save the CCP. This will fail, because there's not enough money in the universe to support a worldwide bubble of $750 trillion (notional value) of credit derivatives.

    Take a look at the new article that I just posted, comparing what's happening today to what happened in the 1920s: "The Bubble That Broke The World," based on a book, published in 1932 with that title. I was able to make some specific new predictions about the scenario that I expect to unfold in the next couple of years, especially in our relationship with China.

    Sincerely,

    John

    John J. Xenakis
    E-mail: john@GenerationalDynamics.com
    Web site: http://GenerationalDynamics.com

    ReplyDelete
  6. Well, in that case it seems to me that you're not objecting to the sentiment, just the fact that it was expressed openly.

    Sounds kinda hypocritical.

    In the words of la Rochefoucauld, "Hypocrisy is the tribute vice pays to virtue."

    ReplyDelete
  7. I don't see anything wrong with that statement. People bought a home they could not afford or took out HELOC to buy vacations and SUVs. They lived beyond their means and were foreclosed upon. big deal. they can rent. it is not their right to own a home. And yes they still have to eat and Walmart has very affordable prices.

    ReplyDelete
  8. oh Wall street is so cruel. boo hoo. grow up babies and grow some balls. i like that statement about heroin users and needles. creative, outside the box thinking. that is how you make money in the markets. being smarter, quicker and more ruthless than the next guy trying to grind it out.

    ReplyDelete
  9. Walmart posts 1.4% sales growth. Target posts 1.2% sales growth.

    In real terms, this unmistakably shows consumer spending is falling as we speak. These are RECESSIONARY numbers.

    All the government statistics about employment, inflation and GDP growth are lies. The business reports for revenue growth cannot be manipulated the same way.

    I think foreign investors are finally realizing the charade that the government (our Ministry of Truth) is perpetrating with our economic statistics.

    Bernard

    ReplyDelete
  10. SPECTRE of DeflationOctober 11, 2007 at 1:10 PM

    Why yes, Wall Street has sunk that low. This is a completely rigged con game with the middle and lower classes having their wealth stolen by the elites of the world. One thing they may have forgotten is that the French Aristocracy said, "let them eat cake". The sheeple did a bit more than that then, and I'm thinking people will be looking for well heeled thieves when this all implodes.

    ReplyDelete
  11. people will be looking for well heeled thieves when this all implodes.

    Dream on. As long as they have their sports contests and "American Idol" to watch, they're not going to do a thing.

    ReplyDelete
  12. Well, nobody here is really focusing on the big story, which is that Wal-Mart's formula is breaking down and its days are numbered.

    Wal-Mart's profit machine depends on low wages and ridiculous benefits, which will be addressed by the next administration and universal health care.

    It also depends on cheap Chinese crap, and the coming wave of protectionism will squash that.

    Towns all over America have stopped giving away the store to get a Wal-Mart. In fact, a lot of towns have effectively banned Wal-Marts.

    Wal-Mart is on the road to becoming just another big chain with way too much floor space for a shrinking economy. Their shareholders will get theirs.

    ReplyDelete
  13. Look at the Baltic Dry Freight index, it's now at 10,000. It used to be at 1,000 in 2002.

    http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/11/cnchina111.xml

    The Shanghai stock index is now at almost 6000.

    Up, up and away for the global economy?

    Bernard

    ReplyDelete
  14. On the topic of Wal-Mart. Sure some of their success is "cheap Chinese crap" but so are most other retailers.

    Wal-Mart may go through some tough times, but they still get product to their stores more quickly and for less money than their competitors. They also have faster and better information to run their business from.

    Will they exist and dominate in 20 years like they do today, who knows, but they will still be around.

    I find the most interesting thing is in the face of large downward revisions from discretionary retailers Wal-Mart said they will come in a bit better than they thought last month. Lowest price wins, especially in tough times. The firm with the lowest costs survives the price war.

    ReplyDelete
  15. I thought Costco announced better numbers earlier in the week? It's kind of interesting to look at the Wal-Mart business plan versus the Costco business plan. Costco actually pays their employees decently -- and that has been one of Wall Streets complaints.

    ReplyDelete
  16. Has Wall Street sunk so low?

    That's nothing:

    But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good...The difference between the bond and the bill is that the bond lets the money brokers collect twice the amount of the bond and an additional 20 per cent, whereas the currency pays nobody but those who directly contribute...in some useful way...if the Government issues currency, it provides itself with enough money to increase the national wealth...without disturbing the business of the rest of the country. And in doing this it increases its income without adding a penny to its debt...It is absurd to say that our country can issue $30,000,000 in bonds and not $30,000,000 in currency. Both are promises to pay; but one promise fattens the usurer, and the other helps the people.

    The biggest scam of all is a central bank/fiat money system where the only way money itself can be created is by the creation of debt.

    eh

    ReplyDelete
  17. "`People still have to live their lives. It's not like somebody forecloses on their house, and then they just decide they're not going to eat that month.''

    If he had instead said:

    "Walmart sells essential consumption items and is therefore a good defensive stock, especially during tough times like the subprime crisis"

    you'd feel better, I suppose, but it is essentially the same point.

    ReplyDelete
  18. Come on, most of the people who get evicted these days lived shamlessly beyond their means. I want everything and I want it now, screw tomorrow. Well, tomorrow has arrived and now there's hell to pay. Such is life.
    Now they have to shop at Wal*Mart instead of some designer outfit. Real heartbreaker.
    Granted there are some real hardships due to job loss or disease, but I am talking about big spenders here. They deserve everything that's coming their way.

    ReplyDelete
  19. What did you expect?

    Hugs and cuddles all around? Warm fuzzy cuddlies?

    These lowlifes lived outside their mean; they deserve every freakin' crap that's coming to them.

    The lenders do too!

    And if they can't eat, yeah, they should freakin' starve. That's how it should work.

    You want warm fuzzy cuddlies, go found a church group!

    ReplyDelete
  20. Hellasious asserts the difference now is that Wall Street is public in their inhumanity. I don't know about that. And I'd like to think that apropos of that view, the street scum are about to get their comeuppance, but I'm not prepared to make such a bet. Suffice it to sat capitalism and its facilitators are unerringly ghastly, as Marx knew too well.

    ReplyDelete
  21. <a href="http://medonlineshops.com" rel="nofollow">OnlinePharmacy</a>October 26, 2007 at 4:20 AM

    tUH2K9 Your blog is great. Articles is interesting!

    ReplyDelete
  22. <a href="http://m1.aol.com/CoryDyer55/index5.html" rel="nofollow">directory of phentermine on the net</a>October 26, 2007 at 2:03 PM

    m0qgpQ Nice Article.

    ReplyDelete
  23. <a href="http://m1.aol.com/IvySalas33/60_261007.html" rel="nofollow">meridia bikes</a>October 26, 2007 at 3:16 PM

    actually, that's brilliant. Thank you. I'm going to pass that on to a couple of people.

    ReplyDelete
  24. <a href="http://members.ospa.us/portal_memberdata/portraits/tmkeqhjef" rel="nofollow">christi corpus hotel motel</a>October 26, 2007 at 3:37 PM

    Wonderful blog.

    ReplyDelete
  25. <a href="http://galopa.t35.com/index4.html" rel="nofollow">carriage horse tours</a>October 27, 2007 at 4:04 PM

    Wonderful blog.

    ReplyDelete
  26. <a href="http://merikop.110mb.com/index2.html" rel="nofollow">anastacia 2005 tour</a>October 28, 2007 at 10:43 AM

    actually, that's brilliant. Thank you. I'm going to pass that on to a couple of people.

    ReplyDelete
  27. <a href="http://www.optimising.biz/portal_memberdata/portraits/tlvyihsxl" rel="nofollow">nh life insurance broker e</a>October 30, 2007 at 2:15 AM

    Magnific!

    ReplyDelete
  28. <a href="http://learning.hsc.hccs.edu/portal_memberdata/portraits/tnglpmobm" rel="nofollow">ringtones</a>October 30, 2007 at 5:28 AM

    Hello all!

    ReplyDelete
  29. <a href="http://www.bcrobotics.org/portal_memberdata/portraits/tunaqpwhm" rel="nofollow"></a>October 30, 2007 at 9:20 AM

    actually, that's brilliant. Thank you. I'm going to pass that on to a couple of people.

    ReplyDelete
  30. <a href="http://m1.aol.com/EloyRowe59/28-291007.html" rel="nofollow">buy cialis line</a>October 31, 2007 at 2:32 PM

    i7Begp Good job!

    ReplyDelete
  31. Shanghai Fashionorganic makes
    Bamboo Clothing,Bamboo fabric ,
    Hemp clothing,Organic Cotton,
    Organic cotton clothing,Hemp Sandal
    Soybean clothingVinyl Bag
    Vinyl Packaging
    laser engraver which is also the perfect choice for stamp making.cnc router
    Super file encryption,folder encryption,A powerful and easy-to-use program for encrypting and protecting your data
    iVANTEE is a professional outsourcing consulting and management company which focuses on outmanaging service
    include software outsourcing.website development outsourcing
    webサイト 開発ソフトウェア 開発

    ReplyDelete
  32. We review the bestonline poker bonus
    online poker rooms
    online poker guide
    poker room reviews
    poker sites
    and so on.
    We offer the highest quality flowers melbourne from around Australia at excellent prices
    onlinecasino.com - online casino reviews
    with best online casino,
    usa online casino, strategy, news!

    ReplyDelete