Can't understand why the silence on the likes of Bernanke about slide of the Dollar$. Even though it favors US export companies but US runs net deficit in export/import. So everybody is paying more for non-american products, and even domestic products are costing more because of supplier and fuel increase. Not to mention corporation profits are dented in major way at a time when we can ill afford to. How can this be good?
Also the OPEC is sounding off about finding other currency to keep their huge cash reserve in than US dollar (held as government bonds mostly). What is the impact ?
Posts: 130 | Registered: Jul 2005
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The silence is because there is nothing we can do about it other then wait it out for it to turn around eventually... so stop *****ing lol one thing this weakened dollar helps is retailers... Europeans etc. are coming to the U.S. where they can buy likewise products cheaper then in their own countries... I know this because I work in jewelry and that is a trend i have been noticing as well as this (believe it or not it can help our economy in that sector and related sectors such as suppliers, transportation etc.):
TOURISTS SHOW SAKS HOLIDAY $PIRIT By PAUL THARP Click to enlargeNovember 21, 2007 -- Saks is single-handedly boosting New York's holiday shopping spirits - thanks to foreign tourists cramming the landmark store with wallets full of cheap dollars.
The luxury retailer yesterday said third-quarter profit more than tripled due to tourist spending, aided by a sudden shopping rush at Saks' impressive new shoe salon.
Analysts say the boom - which came in summer and early autumn months - is on track to last through the Christmas season, giving the Big Apple its biggest lift in an otherwise grim season, already dampened by Broadway's shutdown in a stagehands strike.
Driving Saks' shopping frenzy is the weak greenback, which gives Europeans and Asians as much as 30 percent more buying power.
"The wave of tourist traffic at Saks is tremendous," said retail analyst Stevan Buxbaum of Buxbaum Group.
"The weak dollar makes almost everything incredibly inexpensive compared to their prices back home."
Profit at Saks rose to $21.6 million, or 14 cents a share - up from $6.18 million, or 5 cents a share a year earlier - beating Wall Street's expectations.
The flagship Fifth Avenue store rings up about 20 percent of the chain's business. Total sales rose 14 percent to $796.1 million.
"The Fifth Avenue store alone store helped the company ride the wave of foreign shoppers here," said Buxbaum.
However, Saks CEO Stephen Sadove said some customers, who can afford only an item or two of its status goods, aren't making their usual visits to Saks.
These customers, analysts say, are turning to cheaper stores such as Target or even discounter Dollar General.
"Target is the biggest beneficiary of this trading-down from the luxury stores and department stores," said Buxbaum.
Regardless, Target yesterday posted a surprise 4.4 percent drop in third-quarter profit to $483 million, or 56 cents a share. Other chains serving Middle America also are hurting. Dillard's, Office Depot and Zale Corp posted wider net losses or narrower profits.
The Limited said third-quarter profit fell by half due to a sharp decrease in sales at its Victoria's Secret lingerie chain. Profit fell to $12.1 million, or 3 cents a share, from $23.5 million, or 6 cents a share, a year earlier.
-------------------- Let the world change you... And you can change the world.
I am not talking about a few specialty retailers but the retail industry in general. I have had alot of years experience in sales so I have a little more perspective on it. That article was merely a example and just happened to focus on specialty retailers. But I have read similar articles for all aspects of the retail industry. I would recommend you look into trading retail stocks the month of December till about when they report their earnings for the holidays. You might be surprised and convinced that I am right on this issue. But I could be wrong. We shall see. <shrugs>. I am just saying that more and more tourists are buying here because of the weakened dollar.
As for something can be done. We'll I wasn't talking about the Government. I was talking about us regular folks/citizens.WE can't do anything personally. That the Gov't, Central Bank etc. can do something goes without saying. We elected some of these people after all.
And you shouldn't worry so much about the Saudis and Japanese as much as you should about China who owns a large quantity of T Bills etc. They could devastate us if they wanted to even if they say they won't.
Despite Economy, Malls and Stores Jammed AP Posted: 2007-11-24 03:30:21 NEW YORK (AP) - Malls and stores were jammed for pre-dawn discounts on everything from TVs to toys on the official start of Christmas shopping as consumers shrugged off worries about rising gas prices and falling home values.
The aggressive tactics - bigger discounts and expanded hours like midnight openings - apparently worked Friday. Based on early reports, Macy's Inc., Toys "R" Us, K-B Toys Inc. and others that pushed big price cuts, reported bigger crowds for the early morning bargains than a year ago. Target Corp. and Wal-Mart Stores Inc., said they were also pleased with the shopper turnout.
Electronic gadgets, particularly the hard-to-find Nintendo Wii, topped shoppers' wish lists, though frustrations were high among consumers who couldn't get their hands on the limited bargains.
With the economy relying heavily on the consumer, however, it's crucial that the Black Friday euphoria lasts throughout the season, expected to be the weakest in five years.
"I'm really looking for the bargains this year because I'm losing my job; they're moving our plant to Mexico after the first of the year, so I have to be careful," said Tina Dillow of New Richmond, Ohio, who camped out at a Best Buy store near Cincinnati at 3 a.m. because of a great deal on a laptop.
Louise Jackson of Chesapeake, Va., arrived at the MacArthur Center, a mall in downtown Norfolk, Va., at 7:30 a.m., a half hour before it opened.
"We're just browsing, to see what's out here, to see if there's anything that would be worth it," she said. By 9:30 a.m., she hadn't bought anything, although she did place a pair of pants for herself on hold at Nordstrom . Her only shopping strategy was to keep an eye out for good deals.
"The tougher economic conditions are driving more shoppers to take advantage of early bird specials," said C. Britt Beemer, chairman of America's Research Group.
Marshal Cohen, chief analyst at NPD Group Inc. agreed, but he noted shoppers were buying selectively. Overall, the biggest draws were consumer electronics, including flat-screen TVs, digital cameras, digital frames, and laptops. In toys, which have been battered by recalls of a slew of lead tainted Chinese toys, there were plenty of hits, including video games such as Activision Inc.'s "Guitar Hero III," toys related to Walt Disney Co.'s "Hannah Montana" and Smart Cycle from Mattel Inc.'s Fisher-Price, toy executives said.
Janet Hoffman, managing partner of the North American retail division of the consulting firm Accenture, believes that some parents, concerned about toy safety, may shift their purchases away from toys to video games and children's clothing. She added that sales of children's clothing fared unusually well Friday.
And while mainstream department stores such as Macy's and J.C. Penney Co., which hammered shoppers with big discounts Friday, seemed to pull in the crowds, traffic at mall-based apparel stores was disappointing, according to Wachovia Capital Markets LLC analyst John D. Morris. One problem is that there aren't a lot of must-have fashions.
Macy's chief executive, Terry Lundgren, said that 3,000 people started lining up at the Herald Square store at 5 a.m, forcing the store to open at 5:30 a.m., half hour earlier. That was up from about 2,500 people a year ago. Among some of the most popular early morning deals were Martha Stewart faux holiday trees, that were 50 percent off, and outerwear and sweaters, which were marked down by 40 percent to 50 percent.
"We all know that September and October were not great months, so there is some pent-up demand," Lundgren said. "We feel encouraged by the early signs."
Jerry Storch, chairman and CEO of Toys "R" Us Inc., which unveiled 101 early morning bargains, four times the number last year, reported 1,000 people waiting in line for the 5 a.m. opening at the Manhattan store, double the number a year ago.
Macy's, Toys "R" Us and others with locations in big cities also enjoyed increased business from foreign shoppers reveling in exchange rates that made discounts even deeper.
Melissa O'Brien, spokeswoman at Wal-Mart , which offered such specials as a Polaroid 42-inch LCD HDTV for $798 and a $79.87 Sony digital camera, only said "we are excited about today." Among the most popular items were flat-panel TVs, and various toys, particularly from the "Transformers" line. Special offers on GPS units and digital frames were selling "very fast," she said.
Target's spokeswoman Lena Michaud said traffic was strong based on a spot-check of stores. Gail Lavielle, spokeswoman at Sears Holdings Inc., which operates Sears, Roebuck and Co. and Kmart stores, reported traffic increases from a year ago.
Best Buy Co. drew more than a thousand shoppers to West Paterson, N.J. and to its Manhattan store for early morning bargains on Sony laptop computers, cut to $399.99 from $749.99, and GPS devices from TomTom for $119.99, from the normal $249.99, according to store managers.
Associated Press writers Mike Baker in Raleigh, N.C.,Sonja Barisic, in Norfolk, Va., Chris Kahn in Phoenix, Ariz., and Lisa Cornwell in Cincinatti, Ohio contributed to this report.
-------------------- Let the world change you... And you can change the world.