When Americans Can't Afford A Dollar

Tyler Durden's picture


Today's market moving news (or at least what should be market moving news) comes from hyper discounter extraordinaire, Family Dollar, whose stock is getting clobbered on what is merely the latest downward outlook revision (because as much as the Fed would like, reality, and cash flows, still do matter). Yet, while earnings not only for the $0.99 store but for the entire S&P will be atrocious something that apparently only selling copious amounts of VIX and buying up the ES in hopes of lifting all sinking boats can fix, it is the comments on the conference call that are most disturbing. To wit:


In any other universe, when Americans can't afford a dollar, literally, on purchases, this may be cause for alarm. But not in this one: here, courtesy of Bernanke's central planning, all shall be well. After all: instead of buying "stuff", America's 50 million food stamp recipients should just buy AAPL stock, and retire happily in a few short months if not weeks.

Worst case, they can always convert their stocks into fruity paraphernalia.

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Thu, 01/03/2013 - 13:07 | 3118991 Anusocracy
Anusocracy's picture

Remember, everything that the FED and the government does is for the benefit of every American.

If the Elite and the government happen to benefit more, that's just coincidental.

Thu, 01/03/2013 - 13:14 | 3119027 michael_engineer
michael_engineer's picture

That's an interesting handle you got there. Amused me as much as your comment did.

Thu, 01/03/2013 - 22:49 | 3120952 Anusocracy
Anusocracy's picture


I thought about using Parasitocracy

Thu, 01/03/2013 - 11:47 | 3118689 Shizzmoney
Shizzmoney's picture

The thing is, the markets CAN'T implode.......because if they do, the oligarchs (I think) finally lose their grip on society.....especially in America, because we are prideful as we are crazy.

That's why the fudges numbers, the can kicking, the "do-just-enough" attitude by leaders on both sides of the isle (especially the Democrats).

You can only clog your ears and say, "It's gonna be OK!!!!!!111" over and over for so long.

Thu, 01/03/2013 - 11:48 | 3118704 spanish inquisition
spanish inquisition's picture

Totalitarianism or Bust!

Thu, 01/03/2013 - 11:47 | 3118690 youngman
youngman's picture

Obama by not telling the truth thru the government numbers....BLS numbers and such...is doing a great job of lowering the lower bars for this country...we will have a third world lower class of people that will add nothing to the economy...in fact they will be an anchor to it...sure they will vote for the Democrats....but will bea taker all their lives...again the 47% will be the 55%...the takers vs the producers...they will win.....until the producers quit

Thu, 01/03/2013 - 13:02 | 3118970 Bananamerican
Bananamerican's picture

"we will have a third world lower class of people that will add nothing to the economy...in fact they will be an anchor to it...sure they will vote for the Democrats...."

too late.....and they're called "diversity-voters" not "anchors" 

Thu, 01/03/2013 - 11:47 | 3118693 JiminGA
JiminGA's picture

Interesting.  Dollar General and Variety Wholesalers's various stores are having record sales and profits, and DG is growing like crazy.

Thu, 01/03/2013 - 11:51 | 3118722 adr
adr's picture

Don't confuse growth with painting the tape and leveraging bullshit for better stock options for executives. I've got about 10 Dollar General stores within 15 miles of me. They all look like morgues.

You really think Five Below is actually growing? If you count accounting fraud as growth, well then yes they are.

Thu, 01/03/2013 - 12:23 | 3118842 Freddie
Freddie's picture


I don't even go to those $1.00 places anymore or Lowes or Staples or anywhere. Pretty much it is food only and I am not hurtin like many other people. 

I drive past a Family Dollar on a daily basis and it is dead.  Many restaurants are dead.  A few catering to wealthier old people are still doing okay.

Thu, 01/03/2013 - 13:25 | 3119066 Anusocracy
Anusocracy's picture

It makes more sense to shop at Aldis than Family Dollar.

The pricing and quality are better.

Thu, 01/03/2013 - 11:47 | 3118695 SHEEPFUKKER

What's a dollar? I forget. 

Thu, 01/03/2013 - 13:02 | 3118969 L_Conquistador
L_Conquistador's picture

Look in the gutter.  You'll see some paper rectangles among the pennies, used chewing gum, cigarette buts and other stuff not worth bending over to pick up.

Thu, 01/03/2013 - 11:47 | 3118696 azzhatter
azzhatter's picture

True story, I was in a dollar tree store this weekend. I buy cleaning supplies and stuff there all the time. There was a guy and his daughter checking out in front of me. He had 4 items($1 a piece for all items). He was counting out maybe $3.50 of it in nickels, dimes and pennies. My first reaction was to give him a couple of dollars to speed things along but I didn't.  There is a lot of desperation out there folks and the Charlatan occupant of the white house is off in Hawaii planning our next ass raping

Thu, 01/03/2013 - 12:15 | 3118805 tnquake
tnquake's picture

A friend of mine, who is a general contractor, used to retar the roofs on General Dollar stores. The manager of a store in Memphis told him that they had a 30% shrinkage at the store. She said it did not change much with an armed guard, so they let him go. Price of doing business in some areas.

Thu, 01/03/2013 - 12:58 | 3118848 BlueCollaredOne
BlueCollaredOne's picture

That's because it was most likely the employees.  

I worked part time at Best Buy while in high school.  The man in charge of loss prevention was caught trying to steal 25k worth of computers.  It was most likely not his first time stealing, but simply the first time getting caught.  

If you've ever waited tables you will also see how bad employees rob their employer.  Between the giving away and consumption of free drinks, free meals, and the amount of steaks/seafood that walk out the back door, it is amazing more restaurant owners don't have cameras throughout the place.  

Thu, 01/03/2013 - 17:03 | 3119990 Dr. Sandi
Dr. Sandi's picture

If there were cameras inside restaurant kitchens, nobody would eat the lobster bisque.

Thu, 01/03/2013 - 12:27 | 3118857 Freddie
Freddie's picture

Memphis = ObamaLand.  I would not want to be near Memphis when s**t falls apart. When people steal/shoftlift that much at a Dollar General then you know things are bad.

I went in a cell phone store is a very nice neighborhood in a very nice  and safe town.  They have an armed guard during the day with guy employees and fairly upscale clientele.  At night when there were two girls working no guard.

Thu, 01/03/2013 - 12:52 | 3118938 LFMayor
LFMayor's picture

Memphis = Memphrica

Thu, 01/03/2013 - 13:32 | 3119086 pursueliberty
pursueliberty's picture

Only rivaled by st. louis in this part of the country.  I've been to some bad areas in Memphis and I thank the .gov for giving me the right to be equal in the firearms department.

It is funny to see the white flight that took place in memphis and then moved to north miss.  I read recently that due to the failure of inner city memphis schools they wanted to consolidate white schools.  Somebody could make a fortune buying the land north of memphis if that ever happened.

Thu, 01/03/2013 - 12:50 | 3118935 Chupacabra-322
Chupacabra-322's picture

2 azzhatter,

I would of given him a couple of bucks.  Perhaps some of those nickels and dimes would have been pre 1964 Silver and pre 1982 copper pennies. 

Thu, 01/03/2013 - 13:18 | 3119038 azzhatter
azzhatter's picture

I thought about that after I got home

Thu, 01/03/2013 - 13:06 | 3118986 Meatballs
Meatballs's picture

Let's not forget the charlatans in Congress, eh? All spending and 'laws' originate where? A lot of you seem to forget that it's a club and we ain't in it. It truly is boiling down to us against (all) of them.

Thu, 01/03/2013 - 14:21 | 3119317 smlbizman
smlbizman's picture

i have started responding to people that mention the cost of things...for instance my wife just bought a desk calendar...she said it was 4 dollars last year and 12 this year...i told her that with 2 '64 qtrs and a '64 dime you could have bought it for 60 cents, so thats not bad.....it seems easier for them to digest than all the technical qe etc. ...it helps if you carry a couple with you, the visual helps them out...

Thu, 01/03/2013 - 11:48 | 3118698 Nothing To See Here
Nothing To See Here's picture

A real dollar costs 31,03 federal reserve notes as of right now... No surprise that more and more americans can't afford it.

Thu, 01/03/2013 - 12:14 | 3118802 rwe2late
rwe2late's picture

 Nor perhaps can dollar stores continue to profit if they maintain a $1 price for their items. The margin is getting squeezed.

I have noticed several local "dollar stores" are no longer strictly dollar stores, but have raised their prices for many if not most of their goods.


Thu, 01/03/2013 - 12:30 | 3118866 Vagabond
Vagabond's picture

We'll see the $5 store soon enough.

Thu, 01/03/2013 - 13:23 | 3119055 Bollixed
Bollixed's picture

When I was a kid we had what they called "Five and Dime" stores. Now that kind of verbage is just drug lingo.

Thu, 01/03/2013 - 15:50 | 3119735 FrankDrakman
FrankDrakman's picture

I remember the "5 and Dime". If you think about, in 50 years, this has gone up to $1, or inflation of 20x. But, if you look at goods only, we've actually had deflation over the last 50 years (services, government and the MIC not included). So, the actual inflation rate, due to FRN printing, is much higher than 20x; probably closer to 40x. 4000% in 50 years is about 18% per year!

Thu, 01/03/2013 - 13:11 | 3119011 L_Conquistador
L_Conquistador's picture

I've noticed that they used to have a couple of aisles of food, but now they only have 1/2 an aisle of food items for $1.

Thu, 01/03/2013 - 11:48 | 3118701 busted by the b...
busted by the bailout's picture

They beg in other third world countries, why not here?


Maybe people just don't like Family Dollar anymore.

Thu, 01/03/2013 - 12:06 | 3118771 Things that go bump
Things that go bump's picture

People do beg here.  There is always a raggedy guy or gal at the freeway exits by the mall.  They always hold up signs claiming to be homeless vets, anything will help. 

Thu, 01/03/2013 - 12:27 | 3118856 busted by the b...
busted by the bailout's picture

Yes, that's my point -- we are becoming as poor as a third world country.

Thu, 01/03/2013 - 11:49 | 3118707 adr
adr's picture

Well if that is a beggar in Pittsburgh, you can be sure she gets into a nice white Escalade and drives home to The Hill to celebrate her take with EBT lobster and steak.

Thu, 01/03/2013 - 12:07 | 3118772 Mad Mohel
Mad Mohel's picture

Notice he has a nice iFuck running from his front pocket to his ears. Even has the volume control on the wire, the lucky "bum".

Thu, 01/03/2013 - 12:13 | 3118798 MiltonFriedmans...
MiltonFriedmansNightmare's picture

She?  It's a woman?

Thu, 01/03/2013 - 11:49 | 3118710 SamAdams
SamAdams's picture

Clearly bullish. With unemployment a low 7.6%, confidence encourages purchase of high dollar goods. /s

Thu, 01/03/2013 - 11:50 | 3118714 IvyMike
IvyMike's picture

The "dollar" stores mostly sell junk. Even poor people are realizing that now.

Thu, 01/03/2013 - 11:55 | 3118741 duo
duo's picture

like knockoff toothpaste with dangerous levels of fluoride?

Thu, 01/03/2013 - 12:41 | 3118909 donkshover
donkshover's picture

I bought a sunscreen lip balm  in Las Vegas from one of these stores- thought I was getting  a deal!  the balm tube inside  was only 1/5 the lengthof the tube it came in- screw that!

Thu, 01/03/2013 - 12:12 | 3118794 UGrev
UGrev's picture

mostly..however, I picked up some of the new flourescent lamps there (x4=$4.00). That was 3 years ago. took two years for one of them to finally shit the bed as i left it on all the time in my driveway lamp post. I don't ever turn my driveway light off, even during the day. I have my reasons, but mostly it's defiance. Anyway. 2 of those 4 bulbs are still operational after 3 years of use. One over my door, and one at the garage door. The driveway lamp replacement has been going strong since March 2012. 

In short.. they are just as good as the 12 dollar GE's you get at lowes or home depot. 

Thu, 01/03/2013 - 12:40 | 3118906 duo
duo's picture

same China sweatshop made both bulbs.


Thu, 01/03/2013 - 13:07 | 3118992 Bananamerican
Bananamerican's picture

i bought two sponge floor mops to clean off some mold in a back room...they both broke within minutes, at the handle and at the water press...cheapest plastic I've seen yet.

The Chinese make things that "appear" to be the purported product, in exchange for things that "appear" to be valuable currency.....

in the history of human trading, how fuckt up is zat?

Thu, 01/03/2013 - 13:23 | 3119056 valley chick
valley chick's picture

as much as I dread going in these cheap ass stores...I will drag myself in to buy Golden Harvest (Ball) canning jars and lids that are made in the US.  Other than that could care less what is in the store.

Thu, 01/03/2013 - 12:45 | 3118924 azzhatter
azzhatter's picture

I agree but stuff like dishwashing soap, paper towels for the garage, grease rags, sponges I will gladly stop in and buy for a buck a piece. The dollar tree store near my house is clean and neat. But I have noticed more and more items that are over a dollar

Thu, 01/03/2013 - 11:52 | 3118715 NoDebt
NoDebt's picture

No, no, no.  People are becoming MORE wealthy and can now step up to WalMart and Target.  It's a GOOD thing.

Only thing the dollar stores are good for is to stand outside, yell "get a job" and throw over-rip tomatoes at the people going in and out while having a light repast of champagne and caviar.  At least that's what I do with the kids on the weekend.

Thu, 01/03/2013 - 12:07 | 3118775 MiltonFriedmans...
MiltonFriedmansNightmare's picture

Thanks for that, it resulted in a hearty chortle!

Thu, 01/03/2013 - 12:39 | 3118902 jcaz
jcaz's picture

LOL-  nice job on the "Cramer Point of View"!

Thu, 01/03/2013 - 11:50 | 3118717 Flounder
Flounder's picture

FDO clientele may have switched to Whole Foods.  http://cashandcaviar.com/blog/?p=15952


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