Post-Christmas: The Recovery

Well I have been through five gift openings at four locations so far and just two more to go. The last will be back home when we finally return. I do not remember all this house-to-house gift opening as a child, but, then again, I don't remember this many gifts either. Any hoot, it will be nice to get home. I enjoy seeing family, but there is a lot to be said for home-sweet-home.

Santa Scrooge

Despite all the gifts I saw, it appears that this was a rather slow season for retailers. Despite massive discounts, the customers were just not coming in the doors. I know this is bad news for retailers, but they will have to get used to lean times for some time to come. Those that can survive it will do well in the long run, those that cannot, well, cannot, which apparently explains some predictions for massive bankruptcies in 2009 and 2010 in the retail sector. If you have returns to do, the sooner the better as January is a big month for retailers filing bankruptcy. Undoubtedly they wait to see if a good holiday season helps to bail them out. Well, this year it ain't, so get ready.

http://www.calculatedriskblog.com/2008/12/wsj-retailers-brace-for-major-change.html

The good news is that at least some U.S. comsumers are hunkering down and doing some deleveraging. Consumer debt reached an all time high a few months back in relation to income and we must, I repeat must, stay within our incomes. Americans need to pay down personal debt and increase savings. Doing so will be a painful exercise for both the consumer and retailer, but it is a necessary evil.

Now I am not saying all these consumers suddenly woke up and learned how to be frugal overnight. I suspect most simply are at a point where they are given no choice. Credit card limits are being reduced, home equity lines are gone and incomes are being reduced. Without credit or cash you are really given no choice but to spend less. Some day folks may thank the credit card companies for reducing their lines or their mortgage company for eliminating the home equity line. That may be hard to imgine now, but some day they will be better off because of it. Until then, most will have a few choice words for their banks.

http://www.bloomberg.com/apps/news?pid=20601087&sid=asEhz._blSwg&refer=home

Then again, the market was up today, so go figure. Bloomberg attributes it in part to GMAC qualifying as a bank and, accordingly, qualifying for government aid. Given the very thin trading volume today, I would try to avoid reading too much into this either way.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a9CgUozSEpmw&refer=home

Burning Calories

A doctor in California (where else) reportedly was taking the fat from liposuctions and using it to make diesel fuel for his SUV and his girlfriend's SUV. Apparently some legislator with good foresight already had a law on the books prohibiting the use of human waste for fuel - go figure - so the good doc is on the lamb doing charitable work at clinics in South America. Just think, he can do the liposuction and power the generator for the clinic all in one transaction.

http://www.ktla.com/landing_topstories/?Doc-Busted-for-Using-Human-Fat-to-Fuel-C=1&blockID=171088&feedID=1198

Glad it is Not My Tax Dollars

A study in Japan has determined, and I quote, that "teens who skipped breakfast began having sex earlier than teens who ate breakfast." Aside from the fact that teens who skipped breakfast get out of the house sooner and, thus, got a head start, I fail to see the connection. Still, I didn't pay for the study, so I appreciate it's entertainment value. I hear there is a lobby being lead by Kellog to keep this study from becoming public (Not). Nonetheless, had I only known that all those bowls of cereal were holding me back as a teen . . .

http://www.ktla.com/content_landing_page/?Study-Teens-Who-Skip-Breakfast-Have-Sex-=1&blockID=171017&feedID=1080

Thin trading, thin news, thin post. Night all.

Disclosures: None.