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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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March 14, 2013

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RUNNING OUT OF MONEY
By Michael Snyder

Is “discretionary income” rapidly becoming a thing of the past for most American families?  Right now, there are a lot of signs that we are on the verge of a nightmarish consumer spending drought.  Incomes are down, taxes are up.  Many large retail chains are deeply struggling because of the lack of customers, and at this point nearly a quarter of all Americans have more credit card debt than money in the bank.  Considering the fact that consumer spending is such a large percentage of the U.S. economy, that is very bad news.  How will we ever have a sustained economic recovery if consumers don’t have much money to spend?  Well, the truth is that we aren’t ever going to have a sustained economic recovery.  In fact, this debt-fueled bubble of false hope that we are experiencing right now is as good as things are going to get.  Things are going to go downhill from here, and if you think that consumer spending is bad now, wait until you see what happens over the next several years.

A recent quote from CPA Howard Dvorkin kind of summarizes our current state of affairs very nicely… “The fact of the matter is that America is broke – whether it’s mortgages, student loans or credit cards, we are broke.  The old rule of thumb is that people should have six months’ of savings,” Dvorkin says.  “If you talk to people, most don’t have two pennies.”  These days most Americans are living from paycheck to paycheck, and thanks to rising prices and rising taxes, those paychecks are getting squeezed tighter and tighter.

The middle class is rapidly running out of money.  The following is a list of projected store closings for 2013:
Best Buy – forecast store closings: 200 to 250
Kmart – forecast store closings: 175 to 225
Sears – forecast store closings: 100 to 125
J.C. Penny – forecast store closings: 300 to 350
Office Depot – forecast store closings: 125 to 150
Barnes & Noble – forecast store closings: 190 to 240, per company comments
Gamestop – forecast store closings: 500 to 600
OfficeMax – forecast store closings: 150 to 175
RadioShack – forecast store closings: 450 to 550

Are you starting to get the picture?  Retailers are desperate for sales, but you can’t squeeze blood out of a rock.

Don’t be caught living paycheck to paycheck and totally unprepared when the next wave of the economic collapse strikes.  Anyone that believes that this debt-fueled bubble of false hope can last indefinitely is just being delusional.