As the holiday shopping and travel season approaches, worries over the economy are having a sobering impact on the retail season that is usually the most profitable time of the year for merchants.
To make matters worse, the Dow Jones Industrial Average fell below the 8,000 mark, closing at 7,997, a five-year low that is in part a reflection of the newest monetary crisis: the big 3 automakers who are shopping for a multi-million dollar bailout that could avert bankruptcy that could further compound economic woes. Standard and Poor’s slid another 6%,a five-year low.
General Motors dropped a whopping 10% while Ford’s stock tumbled 25%. Citigroup dropped 25% to under the $7 mark. Bank of America fell 14% and JP Morgan, 12%. Meanwhile, executives of the Big Three automakers flew private jets to Washington in search of federal money to stay afloat.
Fewer travelers are expected to hit the road for the Thanksgiving season next week, and Black Friday, the “morning after” Dow Jones Industrial Average sales frenzy, is looking for large crowds seeking better bargains than ever as retailers slash prices and offer substantial discounts on higher ticket items. Families across the country more concerned with paying essential bills including mortgage, rent, and/or utilities are focusing on both necessary and voluntary spending cuts. Families across the country are also watching their net worth plummet as housing prices tank and investment and retirement accounts take heavy hits.
