Vacuum Cleaners Discussions

Early news reports in the USA are saying the London financial markets nosed dived today in the worse downturn ever.  This comes on the heels of a 4 percent drop in the Dow Jones Industrials last week alone.  Since today is a Federal Holiday in the US in observance of Dr. Martin Luther King the financial markets are closed.  Not sure what impact the London market fall will have on the US markets--have to wait to see.

What and how long will it take jaydee to realize that he needs to enter the low to middle price range vacuum market to stay competitive in the USA in the big box stores' venue?

Any news yet on the 2007 dyson sales? 

Carmine D.

Lucky1 wrote:

When jaydee collected the $6.4 MILLION from HOOVER in 2000 he went to Malaysia to mass produce dysons for world markets.  Skipped right over the UK.  His country of origin.  Brits still upset about that maneuver.

Why did he go abroad?  Cheaper labor costs.  At the time 30 percent less than the UK.  It was probably more.  Kept the dyson prices the same and even went up higher.  

Slave labor without the guilt.

Carmine D.

Mark your calendars.  March 14 [not the Ides of March as Shakespeare said in Julius Ceasar].  Why?  The US government bailed out Bears Stearns, an icon financial institution with 80 years of revenues and profits.  It's CEO said it had a liquidity problem [read it couldn't make payroll and its financial obligations to its clients and customers].  The US taxpayers in their kindheartedness gave BS an interest free loan.  Why?  Because BS is too large to fail [read the domino effect would bring down many others]. There will be more to come to drink from the trough of the US taxpayers in the months and years to come. 

Stock price of BS dropped 50 percent yesterday.  It's down 75 percent for the year. 

Carmine D.

CarmineD wrote:

Hi Carmine,

Thanks for the report.  It of course make me mad as all get out.  Money is found Bear Sterns but there is no loweiring of interest rates to aid the everyday man in escaping forclosure.

Well -- it's a mean world to live in but we've got to stay here 'til we die . . .

Venson

Venson wrote:

Hello Venson:

Ironically, the Fed has cut the Fed Funds rate since September 2007 from 5 to 3 percent.  And very likely to cut again this week anywhere from 25 to 75 basis points.  Despite these efforts, the 30 year mortgage rates have actually gone up over this time rather than down.  No doubt the effects of recession [sluggish economy] and inflation [record breaking commodity prices] vying concurrently on the market conditions. George W.  like his Father doesn't have a clue of the economy's severity as he tap dances and sings on the steps of the White House. 

Word on the street is to look for more banks to petition the Fed for bail outs.

Carmine D.

Hi Carmine,where do the feds get the money from.

Thanks.

MOLE

mole wrote:

Mole:

As always, your question is right on the money.  The Fed prints the money [US dollars with the technical assistance of the Bureau of Engraving and Printing, a Department of the US Treasury] that is in circulation here and abroad.  Increasing the money supply in circulation increases liquidity and credit in the markets.  Decreasing the money supply contracts the money supply in circulation.  It's called "monetary" policy.  The former is inflationary if it goes to the extreme [recall the worthless money in Europe during and after WW11].  The latter is recessionary if taken to the extreme [recall the Great Depression of the 30's].  The Fed's job is to keep the right monetary balance so as not to tilt the US economy [and world markets] too far in one direction or the other as the normal business and market forces influence the supply and demand for US goods and services both here and overseas.

Carmine D.

Hey Carmine,

All's well that ends well.  The Times Onlines says, "JPMorgan Chase Says It Will Acquire Bear Stearns for $2 a Share".  That amounts to about a $250,000,000 which is considered a bargain basement price.

Life is funny.

Venson

CarmineD wrote:

Thanks Carmine, IF anyone that had the money to buy products,either made here or elsewhere, which would be the better buy. I would think that people who have not been busted yet,can almost name their price and get some really good deals. It seems like retail is real slow,customers are just not buying at no matter what the price is.

I would also think that online ,and E-BAY are doing a real lot of damage to the little guys.....

MOLE

mole wrote:

Hello Mole:

The bright spot in the weakening US economy and the fallen US dollar is that the goods we produce for export are less expensive for consumers overseas. 

US retailers are bracing for the worse.  Many are retrenching by laying off staff and culling inventories.

In hindsight, in 2002 when gold was waffling at $250 an once, the gold mining stocks [like Newmont and Anglo] and the commodity were excellent buys.  Why?  At the time, companies make money on the mining when gold hits about $275.  By August 2006, the gold mining stocks doubled in atock price and gold was at $500 an ounce.  Some investors sold and took their profits.  Always a good thing to do.  But...now gold is over $1000 an ounce.  The TV is awash in gold infomercials.  Many commodities followed gold's lead and are at record highs: Wheat, oil, gas and so on.  Unfortunately, not vacuums and especially at the big box retailers.

I agree that eBay has increased competition especially in pricing.  But for vacuums it's been short lived in the current economy.  Why?  People are not buying new high priced vacuums from brick and mortar stores.  My sense is the same is true for eBay.  The stores [and web sites] offering service [and parts] will survive to see better vacuum sales days ahead.  If they make it through the months and possibly couple years ahead.

Carmine D.

Venson wrote:

Hello Venson:

Not for the investors who bought and held Bear Stearns stock.  One billionaire investor lost $800 MILL on the sale and purchase by JP Morgan Chase.  I don't think he is feeing very well these days.

BTW, Fed cut the rate 25 basis points over the weekend, deciding again not to wait until later this week.  Don't know what the US markets are doing.  But most agree that 25 is on the low end.  Most were expecting at least 50 basis points and some even 75.  Some think the markets already factored the cut in and the rate change won't have a effect.  Have to tune in and see how the markets reacted.

Carmine D.