The following are excerpts from a recent Yahoo Finance article regarding WalMart and the difficulties the company is seeing in the US economy today. As I predicted almost 6 months ago, QE is creating nothing more than a great margin squeeze on US consumers. It’s not stimulative in any sort of way. If anything, it’s proving to be an anti-stimulus. You can thank the Federal Reserve in large part for this economic sluggishness and the commodity market income reallocation. The following comments are via Yahoo Finance:
“Meanwhile, rising gas prices and other household costs are squeezing shoppers’ budgets and making it tougher to stretch their remaining dollars to the next payday. Shoppers are focusing on groceries and little else, said Bill Simon, president and CEO of its U.S. namesake business….
“Customers are struggling,” he said.
Rising costs in commodities are also putting more pressure on Wal-Mart, which can’t pass big price increases along to its already-stressed shoppers.”
Despite this, there is still chatter about QE3…..All because our leaders continue to misinterpret the actual workings of the US monetary system and how a program such as this impacts it….Unbelievable.
Source: Yahoo Finance