Finance

The Rise and Fall of the Middle Class: A Retail Cancer

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Is the retail industry, and for that matter, all consumer-facing industries in denial? Actually I think they have not yet detected the real cancer, soon to metastasize. A lot of the coverup has been perpetuated by politicians and some economists who continue to declare that we've had the longest economic recovery in the history of recessions. Some would say it's the slowest recovery ever, with GDP growth wobbling around 2 to 2.5 percent annually over the ten years since the Great Recession, compared to 3 to 6 percent growth following WWII, …

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Richard Baker is my Name – Real Estate is my Game

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What does Eddie "fast buck" Lampert have to do with this? Before I get to the significance of the title of this article and HBC's "go private plan," I stated in an article way back in 2014 that Richard Baker is a brilliant real estate mogul and that Eddie "brilliant financier" Lampert should hire him. A bit of tongue-in-cheek, I said "Now that Eddie "sell the assets" Lampert is turning his dying retail business into a real estate play, he should retain Richard Baker as a consultant. If Lampert can afford him. Of course, Richard doesn't need …

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The Terror of Tariffs: Retailers See It Very Differently Than The Trump Administration

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They say there are two sides to every story and no doubt the situation with tariffs that is threatening trade between China and the United States is no different. But the contrast in how America's retailers see the problem - "catastrophic" is a word you are starting to hear more and more frequently - and how the Trump Administration portrays it - "there is absolutely no need to rush" the President said in a recent tweet - points to a disconnect that could cripple the American economy…taking down retailers with it. Ever since the …

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One More Rabbit Out of One More Hat

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Eddie "abracadabra" Lampert is like a dog with a rag in its mouth playing tug-a-war with its master. He just won't let go. When he acquired Sears and Kmart in the early 2000s, he was publicly trumpeting that he was going to return them back to their rightful positions as great iconic American brands. He did just the opposite. With not a glimmer of vision, zero knowledge about retailing, and terrible leadership, Kmart is "now you see it, now you don't" kaput. And with sleight of hand, Eddie is turning Sears' agonizingly slow and painful death …

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Today’s Retirees Face Unprecedented Challenges: Part Two

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This is part two of a two-part series that explores the unique challenges facing today's retirees that earlier retiree generations did not have to worry about. Part One delineated six new challenges: The rising numbers of retirees burdened with mortgage and rent payments The inability to earn interest on low-risk savings, such as savings accounts, CDs, and Treasury bills More dependence on Social Security as company-sponsored defined-benefit pensions become obsolete, and most 401(k) accounts fall short of financial goals Loss of …

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Today’s Retirees Face Unprecedented Challenges: Part One

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Those retiring today face many challenges that earlier retiree generations did not have to think about. While Social Security and Medicare provide some critical benefits, newly emerging financial challenges will strain retirees' budgets. As recently as the 1990s, financial advisors said that retirement savings of between $100,000 and $150,000 per couple would be sufficient to last the average retirement lifetime. Today, most financial advisors recommend minimum retirement saving for a couple in a range of just under $1 million to $1.73 …

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Buy Now, Wear Now, Pay Later!

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Layaway as we know it has changed considerably over time, and it seems antiquated when today's millennials are looking for higher levels of instant gratification than consumers of the past. As such, there has been a rise in the buy-now, wear-now, pay-later tech-enabled business model where shoppers can take home their purchases immediately, while paying in instalments. In the past, retailers would have the burden of storing layaway inventory until the customer had the funds to pay it off. Once the item was completely paid for, the customer …

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The U.S./China Trade War: Lose Face, Lose Everything

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No one can dispute that free trade should be fair to both sides. And no one can dispute that the U.S. and China trade relationship (the biggest among all nations) has been unbalanced in favor of China for several decades. But to be accusatory towards China for treating us unfairly is a bit hypocritical. Our industries were more than willing (maybe even happy) to relinquish huge chunks of our economy's manufacturing base to China's low-cost work force so that we could turn around and import lower-cost finished goods, that in turn would benefit …

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