Jack Financial Services Blog

http://www.usatoday.com/money/industries/retail/2009-04-09-teen-sales-retail_N.htm

According to research, even the recent downturn has not been able to dissuade teens from shopping. After all, teens will be teens! A recession resistance has been reported by Buckle (BKE), Hot Topic (HOTT) and Aéropostale (ARO), specialty stores for teen wear, all thanks to the teen ‘temperament’ to ‘shop till you drop’!

Teens see ‘optimism’ in everything. So as they now call ‘cheap is cool’, the retailers have started to stock cheap teen wear to increase their sales. And the trick is working!  What’s more, as teens are still growing, they need more and more clothes. Considering all this, all clothes stores will do well to have a teen section [if they don’t have one, that is!

http://www.bloomberg.com/apps/news?pid=20601103&sid=a8AEJVOgpSio&refer=us

Even as the Obama administration announced rescue package for the Citi Group and a new health care plan, stock across major segments fell sharply taking the S&P 500 Index to a 12-year low. While Citi Group declined on raised investor concerns, stocks of health care companies declined on concerns that Obama will cut Medicare payments to insurers and raise rebates on drug makers who must provide to Medicaid recipients. Obama’s recommendation about ending loan subsidies resulted in a sharp fall in the SLM Corp’s shares. The S&P 500 dropped 4.5 percent to 735.09, its lowest close since December 1996. The Dow Jones Industrial Average fell 302.74 points, or 4.1 percent, to 7,062.93. The Russell 2000 Index of small companies lost 5.3 percent to 389.02.

According to Osby Davis, Vallejo’s Mayor, Vallejo might be the first American city to declare bankruptcy. California one of the largest states in the US has also declared itself bankrupt. Such is the impact of the global turndown. Even the most extravagant of states in America, known as land of opportunity, innovation and good living, are feeling the heat today.
California really shouldn’t give in so soon. All the residents of this beautiful state who had often set standards for economic activity in good times should come together and save their home. Let’s save California from collapse and contribute towards helping it come out from the current global recession.

The stock market pinned its hope on Washington’s bank rescue plan. There was a nearly 12 percent increase in bank shares. Investors expect the plan scheduled to be announced soon by Treasury Secretary Timothy Geithner. It should give an impetus to lending. Bank of America (BAC.N) soared more than 25 percent as a result of the news. Michael Pento, a senior market strategist at Delta Global Advisors believed that the stimulus package will get passed and the banks will see better days.

Some components of the bank rescue plan include asset guarantees from the government, buying of toxic assets and then housing them in a supposedly “bad bank,” and pushing capital injections to keep the banks floating. After the rescue package, the economy will hopefully stabilize a bit.