Consumer Spending Down… Unemployement on the Rise

Friday October 31st, 2008

 

Happy FRIDAY all! 

With the reports coming in for companies Q3 finishes, it is reported that this is the best looking quarter for the times to come. Of course Exxon Mobil broke a new record for the best gain in a quarter, but we all knew that the oil industry has been robbing the American people. 

If you have not started seeing the results in slowing consumer spending, you will not have to look to far in the upcoming months. Personally restaurants in my area have been closing, and small odd and end shops too. I talked to a good friend of mine, who is in the Quick Service Industry. He said, “the company is comping sales all ready this year and I have not seen a decrease yet”. “People are cutting back on their spending, but still have a busy life and need a quick meal that is easy on the wallet”. He continues, “Even though we are comping sales, the company is not quite to project goals”. For those of you who do not know what “comping sales” means, is that they are banking profit margins ahead of the previous year.

Unemployment is really going to depend on the performances of Q4 and the Q1 of 2009. Like I said earlier, this quarter was supposed to be the best looking reported from here on out. There are many companies adjusting projections, and reporting losses. Not big losses, but it is the recession. Commodity companies like; General Mills and McCormick are going to keep on the up side due to families cooking more at home. 

Now, I am not going back on my word and I am still searching for individuals to support my outlook. As for the Nation, we MUST remain positive, and I am continuing to search for opportunity in a time that looks like its going to get worse before it gets better.

“There’s a difference in Playing to Win and Playing not to lose”, America we have nothing more to lose.

 

Thank you for your time.

Joe Sobieck