Piccadilly files for Chapter 11 bankruptcy
This is Piccadilly's second bankruptcy filing; the first was in 2003.
Well, you know what they always say. If at first you don't succeed, redefine success.
Piccadilly said in its filing that the company has been hit hard by the recession, which has constrained restaurant spending, especially among the senior citizens who make up a large percentage of the chain's customers. Piccadilly said it responded to the challenges by revamping its menu, raising prices, reducing its staff, freezing salaries and subleasing unprofitable locations.
1. What recession? This economy has been booming since June of 2009!
2. Those on fixed income weren't flocking to the restaurants once the prices rose?
3. Why wasn't Piccadilly using its vast corporate cash hoard to hire *more* workers and *increase* their wages? Shame on them!
None of this makes any sense to me. It goes completely counter to my assertion yesterday. Something else must be going on. It is a mysterious conundrum!
September 12, 2012
The Case for More QE
Without higher food prices, the world cannot prosper.
That's gotta be true. Bernanke definitely delivered more QE. I have complete faith in him!
July 12, 2005
Greenspan's Mysterious Conundrum
For many investors the high level of debt in U.S. households makes it unlikely that the Fed would dare increase interest rates even more. Similarly, the sluggish growth and/or high debt burden in other rich countries have also increased expectations of continued low short-term interest rates there.
It's been seven full years since that was written. Behold the brand new era of American prosperity! Granted, you do need to read between the lines a bit. I'll give you that.
And lastly, is it ever really possible to have too much gallows sarcasm? I can't speak for you, but I'd go mad without it.
See Also:
Sarcasm Disclaimer
I actually ate at this restaurant chain about a decade ago. It was a trip to Tennessee to see my girlfriend's family.
ReplyDeleteis it ever really possible to have too much gallows sarcasm?
ReplyDeleteStag,
If we ignore bubbles, is it possible to have too much prosperity?
I caught a snippet of Bernanke on the TV today. He claimed that as house prices rise, people will feel wealthier and spend more. Hmmmn, didn't we have increased spending during the housing bubble? How'd that work out fo rthe majority?
Funny that Bernanke never mentioned real house price increases either.
Bernanke is a propagandist and a liar......... an advocate for financial fraud. QE is a backwards way of manipulating interest rates and Bernanke knows it.
http://i.imgur.com/a4Pnx.png
ReplyDeleteI just had to do it.
"How'd that work out for the majority? "
ReplyDeleteWe got 140 million jobs out of the housing bubble:
http://research.stlouisfed.org/fred2/series/PAYEMS/
$500B/yr of money creation will in fact push a couple of trillion of M2 eventually I guess.
When the Fed funds a loan, that's high-power money entering the system.
When Fannie Mae funds a loan, that's money that was taken OUT of the system via taxes or bond purchases.
http://research.stlouisfed.org/fred2/graph/?g=aF5
compares our M2 (blue) vs Japan (red). Japan's was dolarized at a constant ¥125 rate.
We kinda need a weaker dollar if we want to be wage-competitive with Europe. The only way AFAIK to get a weaker dollar vis-a-vis them is to outprint them.
Buy gold, LOL
mab,
ReplyDeleteHe claimed that as house prices rise, people will feel wealthier and spend more.
So we can repeat the cycle of tapping that equity? Yes! Babies need new shoe! You can't whine if you don't play! ;)
Troy,
ReplyDeleteBuy gold, LOL
"They" got to you! Say it isn't so.
Cut out the middle metal and head straight to the toilet paper aisle! You know you want to! ;)
When the elephants fight it is the grass that suffers.
ReplyDeleteAs seen on the Internet...
ReplyDeleteQ: What do you call two elephants on a bicycle?
A: Optimistic!
When the Fed funds a loan, that's high-power money entering the system.
ReplyDeleteTroy,
High powered money and the multipliers that go with it are myths (or lies). Banks do not make loans based on reserves. No joke. Banks make loans and then the Fed provides aggregate reserves to the system as needed. The text books and the "experts" have it wrong!
QE does not work the way that the most believe - again bank loans are not based on reserves. The system already has a shed load of excess reserves and adding more will not result in increased bank loans, as if we need more. We have a demand problem. Too many have too much debt and not enough income.
Get used to deficits. Either the Gov't provides the demand or the system will collapse.
Talk about social injustice. If people ever get their minds around what has happened and how the system works.............
Mab,
ReplyDelete"Get used to deficits. Either the Gov't provides the demand or the system will collapse." Well, if the Republican's in Congress and Romney get their way, I suspect your observation will become painfully obvious.
mab,
ReplyDeleteWe have a demand problem. Too many have too much debt and not enough income.
The middle class is being sucked dry.
nanute,
ReplyDeleteDesperate times call for desperate measures.
I'm confident that the next president will sufficiently panic from 2013 to 2017, lol. Sigh.