Friday, March 1, 2013

Its clear people like beating up on J.C. Penny…but its bigger than them

It clear that people enjoy the Ichan versus Ackman saga…and for the record I think Ichan is playing a more dangerous game than Ackman. Trading done in contempt always results in disasters that pale compared to what one may gain at some point. However, there is much more competition than the J.C. Penny Ichan/Acman story. Its about time that people start realizing that while the has to be an execution problem at Penny, there is a bigger one at U.S. Penny - a totally tapped out, weak, tired and creditless consumer who does not trust the economy or the government and does not want to buy more than he needs from Walmart, Target, J.C. Penny, Sears or Amazon for that matter. Its really quite hard for me to imagine that Ben BURNanke actually thought that his leveraging of risk assets would accomplish anything but increasing wealth for bankers and the already wealthy and some illusionary balance sheet improvement for banks or statistical data upon which he likes to contrive his support of his conflicts of interest for his Fed stakeholder banks. And that again blows me away, how is it legal that a bank can be a shareholder of the Fed? That just seems wrong, wrong, wrong…but it is always ignored and certainly protects the banks agendas as opposed to the J.C. Penny shopper’s agenda.
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