The crumbling economic landscape of America

Greetings,

reta3If you want to know the state or condition of the American economy all one has to do is ask Joe Blow on the streets how far is his money stretching today. Then look at the purchasing power of the currency, the dollar. Also look at how investors are dumping US debt(treasuries).

These things can show you insight into the crumbling economic landscape of America. Without a doubt America is in total decline and utter decay. The environment has become so chaotic and critical as more businesses stumble and go belly up.

reta2 …”Here in America, Almighty Allah (God) wants to make himself known with both the punishment and the destruction of this mighty, powerful, and rich people.”–pg.83(tfoa)

The above quote can be seen in every aspect of American society today. If you are still in doubt as to the validity of this quote, all one has to do is look here!

What NCR just Said about the American Retail Quagmire

reta
by Wolf Richter

Source: http://wolfstreet.com

When NCR announced its preliminary and disappointing third quarter results today, it lowered its guidance for the rest of 2014. Its stock got knocked into a breathtaking 21% plunge. While at it, NCR revealed to just what extent brick-and-mortar retailers were sinking into a quagmire.

The maker of, among other things, point-of-sale devices for the retail industry should know: It is, as it says, “the global leader in consumer transaction technologies.”

It blamed “global macroeconomic conditions” such as “foreign currency headwinds.” The dollar had surged recently to regain some of the value it had lost before – very unwelcome news for Corporate America. And NCR blamed particularly the “challenging retail market” for its debacle. CEO Bill Nuti explained it this way:

Market conditions within the retail industry worsened in the third quarter, as evidenced by weak same store sales comparisons and financial results. This resulted in our retail customers spending more cautiously than anticipated and further delaying solution rollouts. Contributing further are ongoing data security concerns, which were heightened in the third quarter. This is causing retailers to shift IT priorities, resources, and capital spending. Additionally, ongoing retail consolidation continues to be a factor impacting our performance.

So, while NCR will “continue to be faced with challenging and uncertain market dynamics,” it remains, obviously, “confident in the actions we are taking to address these challenges, including strengthening our Retail Solutions team and talent….”

NCR, a thermometer into the retail industry beyond the latest sales statistics, has noticed that brick-and-mortar retailers are cutting back. And they’re not just cutting back buying point-of-sale devices; they’re cutting back, period. “Ongoing retail consolidation,” Nuti called it. And some are using bankruptcy courts to do it.

These structural problems in the brick-and-mortar retail industry include Sears Holding with its moribund Sears and Kmart stores. They excel only in two things: shrinking sales and losing money. This year, the company promised to close 300 Sears stores and 80 Kmart stores. Some of us wonder why anyone is still buying there.

A week ago, discount retailer Alco, with 198 stores in 23 states, filed for Chapter 11 bankruptcy protection. In September, after never-ending and wild speculations that electronics retailer Radio Shack might also head into bankruptcy, the company suddenly supported these wild speculations in an SEC filing:

Given our negative cash flows from operations and in order to meet our expected cash needs for the next twelve months and over the longer term, we will be required to obtain additional liquidity sources, consolidate our store base and possibly restructure our debt and other obligations. We are exploring alternatives…. Alternatives include the sale of the company, partnership through a recapitalization and investment agreement, as well as both in and out-of-court restructuring….MORE HERE

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