Biotech Values

[bladerunner1717]

PENS FOR A PENNY. Maybe the real sign of deflation. (Rosenberg)

DEFLATIONARY EXPECTATIONS
Have a look at Back-to-Schoolers Put Off Shopping on page B1 of the USA Today about the latest trend … holding off to buy items for hopes of lower prices. To wit:
“Much like consumers who put off holiday shopping until the last moment, there is a growing contingent of frugal folks, many pummeled by the economy in recent years, who delay back-to-school shopping in hopes of landing bargains like these — or who put it off simply because they don’t have the money.”
We were on to this era of frugality theme two years ago and it was met with derision. Now it’s endemic. Two years ago, 36% of consumers polled by the NPD Research Group said they would try to outlast the retailers; this year, that figure is up to 62%. Kmart’s chief marketing officer says in the article that back-to-school sales are coming in slower this year compared to last. So to move inventory, here is what retailers are being forced to do:
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Office Depot is selling acrylic rulers for a penny (regular price is 99 cents); two-pocket paper folders for a penny (regular price is 29 cents) and pencil boxes … again, for a penny (regular price is 79 cents).
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Staples is selling Bic Stick pen packs for a penny too.
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Wal-Mart, not to be outdone, is selling 7-sheet notebooks for 15 cents.

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J.C. Penney is offering out $10 coupons for purchases of $25 or more. As Yogi Berra says, to save you gotta spend.
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Kohl’s has cut all student lounge furniture by 55%.
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Target has cut its drawing pads by half.
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Kmart has sliced backpack prices by 30%.
So stick these in your inflation pipe and smoke it! We get complaints from our readership all the time about how inflation is actually soaring — well, step out of your own personal bubble — Tiffany’s, Gucci and Daniel — for a minute, join the masses in the real world, and you’ll see tremendous deflationary pressures emerging.



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