Tuesday, April 21, 2015
Value of Manufactures' New Orders for Consumer Goods Industries
Consumer Goods Sector
A category of stocks and companies that relate to items purchased by individuals rather than by manufacturers and industries. This sector includes companies involved with food production, packaged goods, clothing, beverages, automobiles and electronics.
Performance in the consumer goods sector depends heavily on consumer behavior.
When the economy grows the sector will see an increased demand for higher-end products.
When the economy shrinks there is an increased demand for value products.
While some product types, such as food, are necessary, others, such as automobiles, are considered luxury items.
This is Greensboro's Ghost of Economic Development Theory.
Historically, as the economy slows, some of those in power and relatively well known personalities act outside of their usual publicly perceived character to preserve their positions of standing within the community.
The economy is slowing.
Greensboro's economy never really picked back up after 2008.
Via new debt and otherwise, Greensboro and Guilford County's Treasuries have been accessed by a connected few at the expense of the many.
As cash flows fall below required debt payments,
economic panic will ensue across the community's crooked leadership.
A third of college debt payments were not made last month.
Large percentages of our elderly are financially supporting their children.
If we get to a point when the kids lose their jobs, drain their retirement accounts and have to move out of the rented apartments and in with mom and dad, the debt payments associated with many newer apartment developments may default.
Some of our elite may start sweating it, and do something stupid, like try to get Greensboro to fund development outside the city limits by way of water and sewer infrastructure wrapped in a lie about getting an auto plant, right down the street from another site which already has water and sewer.
Like free water and sewer for a Sheetz.
Like incentive money for a hotel.
Like incentive money for a restaurant.
Notice the last three items would artificially remove profits from unconnected competitors.
This is Greensboro.
Some of those at the top could give a siht what happens to everyone else,
as long as they get to stay there.
That's where the confidence games come into play.
Posted by Abner Doon at 9:13 PM