Economics/Geekonomics

Economic Misery News!

by

Well time for me to be bearer of bad economic tidings again.  So here's what's in the headlines today.

Kodak stock falls on rumors of bankrupcy.  It sounds like they don't need rumors – the company seems to be in trouble and is trying to stay afloat selling assets.

Takeaways:

  • They don't sound long for this world, frankly – so if you're there, consider getting out.
  • If they do go bankrupt/out of business, it'll have some impact psychologically, but frankly no one will be that surprised.
  • If they get bought out/broken up there may be some opportuities.

American Economic Mobility is kinda bad.  This is not news to anyone who's been paying attention, but the fact it's getting this much discussion is important – and this article takes a look at some fine details that take it out of the "oh, yeah" class of writing.  Lots to chew on here, and a few surprises (I wasn't aware of some of the family demographic details, for instance).

– Steven Savage

 

Harper’s Article on “Stopping Payment” on Homes and More

by

Worth Reading: Harpers look at movements to take on banks over MERS and stop payments on loans. It's hefty reading, so it may only be for the dedicated, but I'd take a gander.

Essentially between the MERS mess people can take on the banks, it's got a bit of a movement behind it. This is reminiscent of other movements dealing with financial law, and might just combine with similar movements (anti-tax, state sovereignty, local control, etc.). It also has potential to combine with Occupy Wall Street.

It also means that the anger with the housing mess has a chance to mutate into something else, and banks have to keep up  . . . which they're not to good at.

– Steven Savage

Eco/Geekonomics – Sears and Kmart stores to close

by

Not a happy holiday season apparently.

I had been hearing about trouble at Sears, but not the Kmart part of Sears Holdings.  There's a hefty amount of stores closing, about 100-120.  I'm sure the lousy economy is an obvious part of it – as is the move to online (and man, judging by the scene out here during shopping time, online is a good bet).

They're also not alone – Wal-Mart is hurting.  They just have presence, gobs of cash, and stranglehold on their side.

So why is this here, in our Sanctum Geektorum?  Because this is big news:

  • Those quick retail jobs people rely on for cash are going to be affected by lack of opportunity.
  • If there is more of a move online that may change opportunities – and bring some for you.  As I've noted many times I still think Wal-Mart is going to try and build an online presence.
  • Amazon is more likely to be further in the crosshairs after this because, well, e-commerce and such.  This is going to further negative attention on Amazon – though it may result in a can't-beat-em-join-em approach.
  • These closings could affect communities severely depending on where they are.  It may affecy yours.
  • It's a reminder many brands are not "sacred" in this economy.  Your name will not necessarily save you today.

– Steven Savage