Showing posts with label junk bonds. Show all posts
Showing posts with label junk bonds. Show all posts
Friday, April 16, 2010
Wednesday, March 31, 2010
Tuesday, March 16, 2010
Walmart an Indicator of Our Economic Trend
Here I offer some statistics taken from Walmart 2009 Annual Report In this report (amounts are in millions) we can notice a very interesting trend: 2006 net income was $11,231 an 8.58% increase from 2005; 2007 net income saw an .469% increase from 2006 while 2008 there was a 11.36% increase but 2009 saw a decrease on its net income: 4.99% if we compare net sales for 2006, 2007, 2008 and 2009 respectively we see the following trend: 8.88%, 10.388%, 7.89% and 6.71%. When we compare net income and net sales we can notice a descend on sales and net income for 2009. Net sales showed a decline since 2008 while net income shows decline in 2009. The liabilities, debts and obligations for 2009, 2008, 2007, 2006 and 2005 are respectively as follow: $89 856, $91 740, $82 824, $79 011, $65 769 once again we see a an increase on its liabilities, debt and obligations through 2008 but in 2009 we see a decrease of 2.096%...
The liabilities,debts, obligations is not complete but a portion of what I found on the balance sheet, still the point is that even in Wal-Mart we are seeing a decrease on Net Income and Net Sales and if we add other "barometers" such as a mortgage backed securities increase in default, increase defaulting of prime loans, the fact that international investors are reluctant to invest in the USA, the reality that China, Japan and Russia (and I understand that France, Brazil and Canada too) are selling their Treasury Bonds, an alarming increase on Junk Bonds, the unprecedented unemployment rate which is more than 16% (U6 code), the students that are graduating with enormous amounts of money owed in loans which some started defaulting and I could keep adding: state and municipalities budget woes which brings possible cuts in social benefits and laying off of employees we can get a good idea of the health of this country. Oh! I am not mentioning the fact that 3 000 small banks are on the brink of annihilation or extinction...Now we have interest rates at 0% and the creation of NEW MONEY which means that we are really in a mess... No wonder Moodys said that USA is closer to a downgrade. Do I sound like Dr Doom? gloomy, pessimistic, etc? Well I would not consider myself like that but more realistic considering the facts which show that if anything is not done (which I highly believe that nothing will be done) we could be heading to a nightmare or like I always say: The American Dream was just that, A Dream!
The posts in this blog are from different newspapers around the world and all of them are here to prove my point: We are in serious trouble!
The liabilities,debts, obligations is not complete but a portion of what I found on the balance sheet, still the point is that even in Wal-Mart we are seeing a decrease on Net Income and Net Sales and if we add other "barometers" such as a mortgage backed securities increase in default, increase defaulting of prime loans, the fact that international investors are reluctant to invest in the USA, the reality that China, Japan and Russia (and I understand that France, Brazil and Canada too) are selling their Treasury Bonds, an alarming increase on Junk Bonds, the unprecedented unemployment rate which is more than 16% (U6 code), the students that are graduating with enormous amounts of money owed in loans which some started defaulting and I could keep adding: state and municipalities budget woes which brings possible cuts in social benefits and laying off of employees we can get a good idea of the health of this country. Oh! I am not mentioning the fact that 3 000 small banks are on the brink of annihilation or extinction...Now we have interest rates at 0% and the creation of NEW MONEY which means that we are really in a mess... No wonder Moodys said that USA is closer to a downgrade. Do I sound like Dr Doom? gloomy, pessimistic, etc? Well I would not consider myself like that but more realistic considering the facts which show that if anything is not done (which I highly believe that nothing will be done) we could be heading to a nightmare or like I always say: The American Dream was just that, A Dream!
The posts in this blog are from different newspapers around the world and all of them are here to prove my point: We are in serious trouble!
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