“What’s going on is the customers don’t have the fucking money. That’s it. This isn’t rocket science.” Consumerism has long been a defining element of American society, but retail giants are now shutting down thousands of their locations amid a long-anticipated "retail apocalypse."
"These malls are dying, and we see very limited prospect of a turnaround in performance" according to a January report from Alder Hill, which began shorting the securities. "We expect 2017 to be a tipping point." Indeed, cracks have appeared: prices on the BBB- pool of CMBS have tumbled from 96 cents on the dollar in late January to 87 cents last week
"The dissonance between what I have been observing and what is being flogged by the establishment mouthpieces in the corporate mainstream media has never been greater. I’m 53 years old. The older I get the less sure I am about things I was sure about when I was 25 years old... I find it exhausting. We’re lost in a blizzard of lies."
Even though this giant bubble of false economic stability that we are currently enjoying has lasted far longer than it should have, the truth is that nothing has changed about the long-term economic outlook at all.
BCBG Max Azria, known for party dresses worn by celebrities including Selena Gomez and Drew Barrymore, became the latest casualty of the struggling US retail sector. It listed assets in the range of $100 million to $500 million and liabilities in the range of $500 million to $1 billion.
The latest retailer to join the "anti-Trump resistance" is near bankruptcy Sears and wholly-owned subsidiary Kmart, which on Saturday announced it was discontinuing online sales of 31 Trump Home items as part of a push to focus online sales on the most profitable items.
Sears shares soared on Friday after revealing a brutal holiday quarter, however it sparked a short squeeze after announcing plans to cut costs by as much as $1 billion in 2017 and repaying $1.5 billion in pension obligations.
When debt grows much faster than GDP for an extended period of time, it is inevitable that a good portion of that debt will start to go bad at some point. We witnessed a perfect example of this in 2008, and now it is starting to happen again.