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.

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.

CarmineD wrote:

Oh c'mon!  He'll probably get some more from somewhere.  (How many billion did he start out with?)  After all if JP Morgan Chase can buy Bear Stearns for $250 million and then have the government kick in a $30 billion line of credit anything's possible.  Them that's got -- get.

Per the Times Online, the Dow was up 21 points when it cloosed today.

Best,

Venson

Venson wrote:

Venson:

My heart goes out to the 14,000 BS employees whose 401 K accounts are heavily weighted with the company stock.  They not only have the risk of losing their jobs but their retirement savings too.

Word on the street is that the Fed will cut again tomorrow, maybe 100 basis points.  Which may explain why the US market opened down 150 today and then recovered and made a slight gain. 

Also, Lehman Brothers went down to $20 a share today and may be the next financial to go belly up if investors bail.  This time the Fed may not intervene.

BTW, markets around the world opened down today as a result of the US bailout of BS and subsequent purchase by JP Morgan Chase.  Gold hit a high of $1033, as flight to safety.  Have to see what happens tomorrow when the Feds meet.  And world markets are down 5 percent more than the US market so far this year.

Can you imagine buying an asset for 2 cents on the dollar with a guaranty from the US government.  That's exactly what JP Morgan Chase did with the acquisition of BS. 

Carmine D.

CarmineD wrote:

Carmine that's what I meant when I said them that's got get.  Only 14,000 employees? There was a statement made during a news show I watched earlier that claimed about 30 percent of Bear Sterns' stock was owned by employees. That's sad if true.

Venson

Venson wrote:

Hi Venson:

The employees who own the Bear stock could not bail.  Why?  Something in the financial industry called a 'lock up' period.  Before companies issue their financial results and earnings employees are preempted from buying and selling its stock.  Not so with the investors.  Sure isn't fair.

Carmine D.

Sir James thinks people will be investing in his high priced vacuums during a recession :-

http://news.sky.com/skynews/article/0,,30400-1309648,00.html

Do you agree with this point of view, Carmine? ;-)