FedUpUSA

When WalMart Is In Trouble…

 

… you know the end is approaching.

The world’s largest retailer has struggled with pricing as it has lost customers to dollar stores while it also is still recovering from a poorly executed decision, since reversed, to pare down the number of items it offered.

Lost customers to dollar stores?

You mean to tell me that the price ramps that everyone sees are real, and they’re hurting people to the point that they can’t afford to shop at WalMart any more?

Hmmm…… but I thought there was no impact of Bernanke’s policies on America, and that we should all pay attention to “core” inflation?

Who knew that food and energy had to be consumed by….. everyone?

Yeah.

Reality is this: Price ramps in input costs can only go one of two places – it can either hit margins or it can be passed through to consumers.  When the consumer is broke and has no job, any attempt to pass it through simply results in lower sales.

Welcome to Hell WallyWorld – a Hell of Bernanke’s making for the explicit purpose of bailing out the banksters that created the economic mess with their Ponzi-based debt accumulation schemes over the previous 30 years – and a scheme which used to benefit you.

The problem with playing such games is that the benefits are fleeting but the costs are not.

Disclosure: No position in WMT

The Market-Ticker