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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (14580)	5/27/2004 9:59:10 AM
From: Sam Salomon	Read Replies (2) \| Respond to of 110194

But what I don't get is that people are now spending over two bucks a gallon to drive there and buy extra, not the same three dollar lattes and sugar drinks. I have read several years ago that relatively cheap indulgences, i.e. relatively to a meal in an expensive restaurant, an expensive piece of clothing, a vacation, etc. can, though not necessarily have to, grow quite surprisingly in times of economic hardship. People then may forgo a more expensive indulgence, i.e. a vaction that may cost several hundred dollars for several trips to a cinema or Starbucks, each of which costs "only" several dollars and still have net savings, albeit less value for the money.

To: russwinter who wrote (14580)	5/27/2004 1:08:16 PM
From: benwood	Respond to of 110194

In the Seattle papers, they were predicting the peak and fall off of "latte" behavior, oh, about 1998, back when I was very happy to own the stock. In a nutshell, they take up where the great American diner from the 50's left off. Not everybody wants to meet in a bar, and not everybody wants to have a sit down meal (hence, the kiosks that do well in airports). IMHO, their coffee is near the best, although for cost reasons, I only buy 1/4th of my java there and buy just-roasted beans at Costco for 70% less (not quite as good, but so much cheaper...). In an airport, I will go to a Starbucks over just about any other place, for coffee and a scone. One reason they do so well... this woman that worked with my wife typically bought 3 grande sized latte/mocha drinks each day -- not only lots of calories but around $11-12 per day, over $300 per month. And she was only making $14 an hour in her job. When you look at the absence of hope and the proliferation of moral bankruptcy offered as a model by corporate America and the federal gov't as a "hole," why would anybody in the 20-something generation aspire to something in the declining future. I think they just enjoy themselves now because the greater world has no vision for the future but the corruption and transfer of remaining wealth to the megalomaniacs in competition with each other for the spoils and the king shrub vision of a war of perpetuity combined with the silver dagger in the heart of individual and states' rights and power. Or to put it another way, I think a lot of people can't think of a good reason for NOT going to Starbucks every day (or several times a day), nor virtually any other kind of financially restraining behavior -- we have grown two generations of Americans who do not know the concept of delayed gratification, although they might come to grips with that concept after Greenie's policies trickle down in the form of a flash flood.