At first things went well, very well. In March sales of Lutheran gasoline (mocha) were up 229 percent over pre-price cut. Melissa Allison, who covers coffee for the Seattle Times (that’s gotta be like having the philosophy beat in ancient Athens), says cheap joe may not be enough. Turns out people weren’t buying the baked goods needed.
Today Gerard Centioli, CEO of Icon LLC in Seattle, which co-owns (with Krispy Kreme) 12 stores in the Northwest and Hawaii, tells Allison (does she ever get confused about which of her names goes first?) that two of the stores now require you buy something baked in order to get the coffee deal.
Which is worse – losing a lawsuit or needing around-the-clock security for all your senior executives? I’m pretty sure the phrase “hanging is too good for them” is echoing around a lot of people’s minds right now.
BTW, the $165M in bonuses is in addition to a previously scheduled $121M:
What that actually means is Hyundai is offering to cover up to $7.5K of the debt on a new car in case of
Loss of driver’s license due to medical impairment
International employment transfer
Self-employed personal bankruptcy
Details: You have to have made at least two payments; you are still on the hook for everything over $7.5K and; they get the car back. Which means if you bought the bottom line Accent with nothing added to it (MSRP $9.9K) and make just the two payments you are only on the cuff for about two grand. Not great but so far it’s better than anything else out there. (What dumbass wrote that? Truth is below)
You are on the hook for only the depreciation OVER $7500. Example: if the car had an msrp of around 25 grand and you were on the peverbial hook for the whole magilla and the depreciation over the first 10 months was 30% ( 7.5 large ) you would owe nada.
The deal looks even better when you consider that none of your tax dollars have gone into propping the company up.
So the new motto is, “Hyundai — the car to buy if you think you’re going to get canned.”
BTW, now that the extension of unemployment benefits has passed the Senate expect to see a sharp increase in the unemployment rate — which only counts people who are collecting unemployment insurance. You are no longer officially counted as unemployed if you are not collecting insurance. A lot of people who used up their benefits but aren’t employed will now re-appear magically on the roles. They will just as magically disappear in seven weeks when their benefits are used up and the rate will go down again. However, those people won’t be any more employed.
Many people are concerned this will mean a continuation of the Paulson strategy of throwing good money after bad. (”Am I the only one worried that by the time Obama is sworn in on January 20th, the Paulson Treasury will have run through almost a trillion dollars to little or no effect?“) Currently there are attempts to qualify GM as a bank so it can get a cut of the bailout money (LOL!!!). A similar request by GE makes more sense to me because GE is a well-run company. Several large cities are also making requests for funds. Personally, I’d give funds to Wasilla before I’d hand a dime to GM.
I’d love to file this under “You know it’s gotten bad when …” but we’re too far past that. Wonder who will be the first retailer to plug this into its ads? “The latest in worry-free shopping: You can put up to $250K on a gift card! Guaranteed by the FDIC even if we bite the dust!”
Before the fiddlers have fled
Before they ask us to pay the bill
And while we still
Have the chance
Let’s face the music and dance
Last March, the BBC ran a story about shanty towns springing up in the US.
At the time BoingBoing and those few others who saw it asked why we were learning about this from the UK media and not from the US media. Now, a scant six months later, the US press has paused from parsing porcine lipstick and noticed.
Today the early headlines say Stocks soar at opening after gov’t rescue plan. Forgive me for thinking the markets are indulging in some irrational exuberance. We’ve seen this sort of response before. This is from the Wall Street Journal on March 19:
At some point we are going to see a huge impact from the Fed’s determination to once again deal with another issue by printing more money. Some commentators say this will simply mean an explosion in the size of the national debt. I wish that was all. The current crisis was created by pumping increasing amounts of money and credit into the economy, it is beyond me to understand why doing more of this will help fix it. You know what they call it when you keep repeating the same behavior and expect different results, right?
I am not smart enough to determine if we are about to hit a period of inflation or deflation but I know something is going to happen and will keep happening until all the difference between the amount loaned and the actual value of assets comes into balance. (If you’re a debtor start rooting for deflation — it means any money you do use to pay off a debt will be worth less than the money you originally borrowed. A net gain, if not a happy one.)
As the year has gone along, I’ve tagged a number of items under Recession? What Recession? I can’t say they make for happy reading:
No matter how many times it bounces, the cat isn’t getting any less dead March 20, 2008 · 2 CommentsHas anyone else noted that we are no longer trying to avert a recession? Now the news stories all say that various actions are being taken in order to avert either a “deep” or “prolonged” recession. Expect to soon read about the steps being taken to end the recession without any formal announcement of its actually having begun. Of course, as M Horn likes to point out, the word recession has been redefined to a point of uselessness. Where it once meant “a decline in GDP for two or more consecutive quarters,” it now is a synonym for “the current mess.”
In March, when the BBC ran that shanty town story, it still seemed possible to have a reasonable disagreement over whether or not we were in a recession. Now the D word is in play. Soon we will be hearing that we are not in a depression and that we are trying to avert one. That is becoming the economic equivalent of promising to have the troops home by Christmas. As soon as you hear it, you know it’s a lot worse than anyone is willing to say.
Someone once asked Tom Lehrer why he stopped writing those wonderful, witty songs about the news. Having turned out anthems on topics from pollution to nuclear proliferation, Lehrer said he had begun to feel like a citizen of Pompeii being asked to say funny things about lava. Without having matched Mr. Lehrer’s accomplishments, I can certainly empathize. I have been saying for the last seven years that the real problem with the Bush administration is that it took all the fun out of being able to say “I told you so.” Unlike Mr. L, I refuse to leave the scene — especially when we are in such a target rich environment.
There may be trouble ahead
But while there’s moonlight and music
And love and romance
Let’s face the music and dance
While many people have recorded this song — but not Roxxy Music, for some reason — I still prefer the original by Fred Astaire. It’s on the soundtrack to Follow The Fleet. A happy little musical by Irving Berlin that was made into a movie in 1936.