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	<title>James Robert Kelley &#187; Lowes</title>
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		<title>Early Indicator Turns Down</title>
		<link>http://jamesrobertkelley.com/2009/11/early-indicator-turns-down/</link>
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		<pubDate>Wed, 18 Nov 2009 14:02:29 +0000</pubDate>
		<dc:creator>jameskelley</dc:creator>
				<category><![CDATA[Politics]]></category>
		<category><![CDATA[economy]]></category>
		<category><![CDATA[congress]]></category>
		<category><![CDATA[debt]]></category>
		<category><![CDATA[deficit]]></category>
		<category><![CDATA[Home Depot]]></category>
		<category><![CDATA[housing]]></category>
		<category><![CDATA[housing bubble]]></category>
		<category><![CDATA[Lowes]]></category>
		<category><![CDATA[spending]]></category>

		<guid isPermaLink="false">http://jamesrobertkelley.com/?p=68</guid>
		<description><![CDATA[I&#8217;m not going to play with words on this, I think the worst is yet to come for the economy.  If you look at the consumer spending in 2007, when the recession started ( we didn&#8217;t figure it out until late 2008 ), you will see that Home Depot and its competitors experienced a downturn in sales.
Since [...]]]></description>
			<content:encoded><![CDATA[<p>I&#8217;m not going to play with words on this, I think the worst is yet to come for the economy.  If you look at the consumer spending in 2007, when the recession started ( we didn&#8217;t figure it out until late 2008 ), you will see that Home Depot and its competitors experienced a downturn in sales.</p>
<p>Since our bubble economy is based on inflated housing prices, which produces credit, the government offered stimlus in the for of housing tax credits.  This created another mini-bubble and profits started to tick up.  The article below you will see the details, but a couple highlights:</p>
<blockquote><p><span style="font-family: Georgia; line-height: 20px; font-size: 15px; color: #111111;">Third-quarter sales fell 8 percent to $16.4 billion. The average customer ticket in the period dropped 7 percent to $51.89.</span></p></blockquote>
<blockquote><p>On Monday, Home Depot rival Lowe’s Companies Inc. reported its profit for the third quarter dropped nearly 30 percent to $344 million.</p></blockquote>
<p><a href="http://atlanta.bizjournals.com/atlanta/stories/2009/11/16/daily25.html?ana=e_pft">Home Depot profit slides in third quarter &#8211; Atlanta Business Chronicle: </a></p>
<p><span style="font-family: Georgia; line-height: 20px; font-size: 15px; color: #111111;">The article has the usual Love and Light comments for the economy, and prayers to the false gods of money.  Once you get past all of that, think about this: What will happen when the government cannot afford to keep stimulating?  Look for the answer here, <a href="http://money.cnn.com/2009/09/16/news/economy/debt_ceiling/index.htm?postversion=2009091610" target="_blank">CNN: U.S. about to hit debt ceiling &#8211; again</a>.</span></p>
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