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Strategies & Market Trends : The coming US dollar crisis

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To: Tommaso who wrote (6542)4/24/2008 2:23:09 PM
From: John Vosilla  Read Replies (1) of 71456
 
'If we had inflation , Starbucks would be able to raise coffee prices . Mish's Deflation scenario playing out as he called it .

Starbucks Decaffeinates Expectations

"The current economic environment is the weakest in our company's history, marked by lower home values, and rising costs for energy, food and other products that are directly impacting our customers," said Chairman, President and CEO Howard Schultz. "While this is having a substantial impact on our performance, I am as enthusiastic as I was when I returned to Starbucks as CEO three-and-a-half months ago about our opportunity to reinvigorate the 'Starbucks Experience.'"

04/23/08 - 06:43 PM EDT'

Message 24527443

T, maybe I'm mentally challenged but this sure looks like another sign of stagflation to me, margin pressures in a weak economy.. If costs were actually deflating you can even drop your prices a little and still increase margins<g.
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