HARD GOODS
Hard Goods ... durables .. manufacturing components, are evidencing by market reports, the stall which follows a credit crunch and in anticipation of any slow down. Inventories are not moving. Some are dormant in manufactures lots and warehouses; some have been sold to warehouses of wholesalers and intermediate buyers; some are in transit [F.O.B.]. Credit will purchase them ... and credit can be available to ward off hard times' consolidation-minded postponement of those investment decisions by a consumer or a business institutional purchaser.
A recent purchase in our household, to modernize a home snow removal capacity characterized past by this bloggers mind & muscle, and a 36 year old lesser snow-thrower/blower (a middle class home hard good); was motivated by the better fall prices (which were examined in contrast to last year's late-winter heavy snowfall & short supply high priced market; and the compelling reminder that we're making lawn mowers now, come back in the fall (which as this rambles was an agreed good idea when supply and early deals mean better prices & choices).
But the point of this is the 'kisser' on the sale. Sears Roebuck & Company, the winning seller had good equipment selections - especially snow-removal strength/capacity, good prices and good credit. The purchase combined a good homeowner's middle class credit rating with an optional credit re-payment extension of a year's delay. Yes, this blogger is no fool, the credit is over-head (cout de commerce) added to the whole or offered as both Sears and other hard goods sellers have done in the past, as a 'negative or no-interest for a year, etc., pre-paid option.
Hence, here, the hard goods lesson. They will stay on shelves or in inventory max-out warehouses until buyers feel times are better. That would be when either a return to or more income occurs, or business is better or at had (including those prospective orders for home betterment & business modernization & expansion) or until consumers can afford the risk.
That is what credit can do. Japan, now cutting back on automobile production, as is or will be Spain and Brazil, and Korea, and Detroit & NAFTA, and with a strong reactive YEN, previously could lead on similar hard goods sales with great credit arrays. Beyond the vault & upper-tier bank and bourse aid - that consumer credit can happen again. A 94% increase in a trade defict (or decline in trade surplus) signals concern; and coupled with the reactive YEN appreciation that equals recession in sevral hard goods industries. Tax credits for hard goods investment (tools) and an ACRS scheme to move and retire old machines, even to blossom used goods markets in pricing & buying recourse, would do it. If a balk after credit is allotted, then inventory taxes would motivate the discount. That appreciating safe YEN will fund bonds which fund credit.
Delay for hard times mentality is contagious .. let's open the windows and get some fresh air. Sane returns expecting growth in the bourses will follow including profits from earnings (dividends). Ask your hedged fund manager whether the market or he/she is variable driven in meeting growth targets for his/her investors. And "quo-vadis" .. where the growth?
A recent purchase in our household, to modernize a home snow removal capacity characterized past by this bloggers mind & muscle, and a 36 year old lesser snow-thrower/blower (a middle class home hard good); was motivated by the better fall prices (which were examined in contrast to last year's late-winter heavy snowfall & short supply high priced market; and the compelling reminder that we're making lawn mowers now, come back in the fall (which as this rambles was an agreed good idea when supply and early deals mean better prices & choices).
But the point of this is the 'kisser' on the sale. Sears Roebuck & Company, the winning seller had good equipment selections - especially snow-removal strength/capacity, good prices and good credit. The purchase combined a good homeowner's middle class credit rating with an optional credit re-payment extension of a year's delay. Yes, this blogger is no fool, the credit is over-head (cout de commerce) added to the whole or offered as both Sears and other hard goods sellers have done in the past, as a 'negative or no-interest for a year, etc., pre-paid option.
Hence, here, the hard goods lesson. They will stay on shelves or in inventory max-out warehouses until buyers feel times are better. That would be when either a return to or more income occurs, or business is better or at had (including those prospective orders for home betterment & business modernization & expansion) or until consumers can afford the risk.
That is what credit can do. Japan, now cutting back on automobile production, as is or will be Spain and Brazil, and Korea, and Detroit & NAFTA, and with a strong reactive YEN, previously could lead on similar hard goods sales with great credit arrays. Beyond the vault & upper-tier bank and bourse aid - that consumer credit can happen again. A 94% increase in a trade defict (or decline in trade surplus) signals concern; and coupled with the reactive YEN appreciation that equals recession in sevral hard goods industries. Tax credits for hard goods investment (tools) and an ACRS scheme to move and retire old machines, even to blossom used goods markets in pricing & buying recourse, would do it. If a balk after credit is allotted, then inventory taxes would motivate the discount. That appreciating safe YEN will fund bonds which fund credit.
Delay for hard times mentality is contagious .. let's open the windows and get some fresh air. Sane returns expecting growth in the bourses will follow including profits from earnings (dividends). Ask your hedged fund manager whether the market or he/she is variable driven in meeting growth targets for his/her investors. And "quo-vadis" .. where the growth?
posted by scotty of course at 11:07 AM
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