Thursday Failure – Wal-Mart Misses, Americans Officially Out of Money

Posted on the 20 February 2014 by Phil's Stock World @philstockworld

Not a little miss, mind you – they missed BIG.  On TV, the pundits are saying it's because their product mix is stale or the competition from the Dollar Store is tough or whatever but WMT is not just SOME store, it's the biggest retailer in America, with $480 BILLION in sales last year – that is more than the GDP of all but 25 nations on the planet!  

Argentina (26) has a GDP of $477Bn, Austria (27) is $394Bn (it drops off fast), Denmark (33) has $314Bn (mostly Ikea) and Singapore (35) has 276Bn.  When one of those countries has a GDP crisis – do we excuse it because their competition had a better year or say they should change their product mix?  NO!!!  When ANYTHING that large has a problem – it's usually an indicator of much larger, systemic problems in the Global Economy.

As you can see from the above Stiglitz quote, Joe and I know exactly what the problem is.  In fact, we were just discussing income inequality this morning in our Member Chat Room as Greg Manikaw penned a dspicable apologesia for the Top 1%, which was nicely cut down by Lambert Strether and, of course, I added my own 2 cents (more like 10).  So, I'm not going to re-hash it all, I'll let you follow the links and then we can discuss the repurcussions of this looming disaster.  

All caught up?  Good, let's move on then.  

Even the most inbred of Waltons must eventually realize that, if the bottom 90% run out of money, then they can't spent it at WMT.  This is why the Billionaires who own retail operations, restaurants, service centers, even utilities, that supply the bottom 90% need to wise up and get their lobbyist to SUPPORT a higher minimum wage and SUPPORT more benefits.  Look at the above numbers, this poor woman goes to college and comes out $26,000 in debt and, like a typical mortage, she ends up paying 300% of what she borrows over time.  This is how we are making our children start their lives – buried in debt.  Only the Banksters win this game!  


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