The Thermometer Doesn't Lie
A great article today points out some truths about the American economy today. It centers on Wal-Mart, but the same can be said of other retail stores, such as Macy’s and Target. One of the best ways to tell how the economy is doing is to look at Wal-Mart. Lots of people shop there, across a wide range of demographics. So, when the company reports declining sales, there are only one of two reasons. Either Wal-Mart has lost their mojo, or people just aren’t buying. Since nothing significant has changed with Wal-Mart’s operations, and the same story is repeated with Macy’s and Target, it must be that people aren’t buying. Thus, this is a more accurate read on the economy than unemployment or GDP.
Here’s the article:
Here’s the pull-quote:
“The economy is in collapse. That’s what’s going on. We’ve spent all the money, we’ve borrowed all the money, and we’re in the tank.”
If people aren’t shopping as much at Wal-Mart, some of those people aren’t paying their mortgage. Or they’re not buying houses-they’re renting. There will be continued opportunity for real estate investors to buy at deep discounts and to provide housing for those unable to buy or own.
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