Is a Fiscal Greek Tragedy Looming?; American Apparel’s Un-Trendy Legal Woes; Curing the Black Friday Blues

What would Socrates say?

Image courtesy of koratmember/FreeDigitalPhotos.net

Image courtesy of koratmember/FreeDigitalPhotos.net

The Greeks let its creditors know exactly how they feel about their austerity measures and voted resoundingly against them. But at least Greece’s Foreign Minister, Yanis Varoufakis, resigned announcing via his blog “Minister No More,” much to the delight and merriment of many a Eurozone finance minister. This resignation has even got some folks mildly optimistic that the financial crisis in Greece isn’t completely unsalvageable. But these very same finance ministers are all still in a tailspin about how to avoid a fiscal disaster as Greece already defaulted on a 1.5 billion euro payment to the International Monetary Fund while another payment is due to the European Central Bank for 3.5 billion euros on July 20. If a sovereign, in this case Greece, defaults on its loans, well then, bad things will just get worse as the banks become insolvent – as in, tapped out, dry etc – and then get nationalized. Once they get nationalized a brand new currency is introduced – a change which would be very bad for so many reasons. As for those Greek banks which are staring down the wrong end of nationalization and insolvency, they’re likely to run out of cash by the weekend.  In case you haven’t noticed, Greece’s fiscal turmoil has been causing even more turmoil in the global markets. So yeah, it’s in everybody’s best interest that Greece gets its fiscal act up and economically running.

Clearance…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Things are looking pretty ugly for embattled clothing retailer American Apparel. The company has a $30 million cost-cutting plan in the works and that could mean an under-performing American Apparel store near you might be closing its doors forever.  The chain has 239 stores and 10,000 employees whose heads are currently on the chopping block. American Apparel is also undergoing an image makeover after ousting founder and CEO Dov Charney. New CEO Paula Schneider would like to see the company sell actual clothes, as opposed to body parts. Sounds fair. This $30 million plan will hopefully rectify some of the other problems afflicting the clothing line and reverse those “steep losses.” However, many think it’s going to take a lot more cash than that. Some of that might have to do with the over 20 lawsuits looming courtesy of the booted Dov Charney and his associates. Of course, the brass at American Apparel has called the lawsuits “meritless.” The stock, which is down over 55% for the year and is currently hovering at a dismal 45 cents per share, has a market value of about $90 million. That’s a far cry from its $540 million market value it enjoyed just five years ago.

Prime deal…

Image courtesy of Iamnee/FreeDigitalPhotos.net

Image courtesy of Iamnee/FreeDigitalPhotos.net

If you are eagerly pining away for the chaos that comes with Black Friday that is still an endless five months away, then you’re gong to love this next one. Amazon is throwing its very own birthday party on July 15, dubbed “Prime Day,” and has invited you to come. Amazon wants presents. It wants you to spend your hard-earned money on deals that will be featured on Amazon – deals that you usually only see on Black Friday, and as the case may be, cyber-Monday. And while you don’t necessarily need to rsvp, you won’t walk away with any ridiculously-reduced items unless you subscribe to Amazon Prime – which by the way, will set you back $99 a year. But hey, at least you’ll get instant video streaming, free two-day shipping, Prime music and maybe even some really great bargains.

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Guess it’s Not Payback Time for Greece; Brit Wants to Save the Fiscal Day for Greece; diSinging the JetBlue-s for Baggage Fees;

Greece frightening…

Image courtesy of africa/FreeDigitalphotos.net

Image courtesy of africa/FreeDigitalphotos.net

Will the third time be a charm? Fiscally-challenged Greece has asked for yet another bailout, this time to the tune of $27 billion. Greek Finance Minister Yanis Varoufakis has indicated that repayment for $1.8 billion of a $270 billion tab is not gonna happen, much to the dissatisfaction of the International Monetary Fund, the European Central Bank and the European Commission who all ponied up the cash for the cash-strapped European nation. In fact, Greece isn’t even getting the customary 30 day grace period. There are those in Greece who weren’t down with suggestions made by its creditors who called for “austere” measures and a more stringent repayment schedule. Lucky for Greece, however, the country is still not expected to officially go bankrupt. Phew. There’s also that other payment due July 20 in the not-so-small amount of $3.9 billion. That’s probably not going anywhere either. As for Alexis Tsipras and his July 5 referendum, he subtlety indicated that he’ll bow out – as in, resign – should the Greek people decide to vote in favor of the measures, for which he does not care. What a guy.

Oh and one more thing…

Image courtesy of Mister GC/FreeDigitalPhotos.net

Image courtesy of Mister GC/FreeDigitalPhotos.net

If you’re heart goes out to Greece and you feel the need to help the country in its loan repayment – because you don’t know how else to spend your disposable income – then you’re in a luck. A British man found a way for you to throw out your hard-earned money by donating to a fund that would “help” mitigate the European nation’s fiscal woes. Out of the goodness of his heart, or maybe because it seemed funny at the time, Thom Feeney established an Indiegogo account to help raise 1.6 bullion euros. He reasoned that if every European chipped in three euros, then the people will have sorted out this mess instead of leaving it to those pesky “European ministers flexing their muscles.” Laugh all you want but Feeney has so far raised over 250,000 euros from over 16,000 contributors.

And then there was one…

Image courtesy of phasinphoto/FreeDigitalPhotos.net

Image courtesy of phasinphoto/FreeDigitalPhotos.net

Just when you thought JetBlue really was different than all the others, the airline with a relatively decent customer satisfaction rating went ahead and broke our consumer hearts by announcing that, it too, would start charging to check bags. This leaves Southwest Airlines as the only airline who has not jumped on the baggage fee bandwagon. Well, at least not yet. Beginning today, if you book a ticket with JetBlue, and it happens to be the cheapest ticket, expect to pay a $20 fee for that first checked bag. If you aren’t a light packer and find yourself needing to check an additional bag, expect the price to go up to $35. If you have more than that, well, maybe you should reconsider air travel. In any case, that $20 fee is only for those checking their bags online or through a kiosk. Once you decide to check that bag at  a counter via an actual living and breathing human being, watch the price go up by $5. If you’re fotunate enough not to have to book the lowest tier ticket, then congrats. You can continue to get that first checked bag on the house – or rather, aircraft.

Wild Things at the ECB Conference; Google Gets Antitrust Slapped by EU; Smith & Wesson’s Shares Shoot Up

Think you’re having a bad day?

Image courtesy of noppasinw/FreeDigitalPhotos.net

Image courtesy of noppasinw/FreeDigitalPhotos.net

Mario Draghi, President of the European Central Bank just might be having an even worse day than you, this April 15. And he didn’t even have to file his taxes. As Mr. Draghi was speaking at a conference in Frankfurt, Germany today when a female protester literally jumped onto the table from which he spoke and threw a stack of papers and confetti at him screaming, “End ECB dictatorship!” Now folks have been known to take intense issue with what they consider to be measures that are just a bit to harsh for fiscally challenged European countries, especially Greece and Spain, but if I didn’t know any better, I’d say Ashton Kutcher was somewhere in the room telling Mario Draghi he’d just been punk’d. But…Ashton wasn’t there. Alas, if only the rest of the conference had been as exciting. Instead the ECB President went on to discuss the less riveting topics surrounding the state of the European economy, how it’s allegedly improving and that the $1.2 trillion quantitative easing program is apparently working. In case you were wondering just what on earth is quantitative easing, or QE, as the cool kids call it, it’s a super special type of monetary policy used when the regular one doesn’t seem to be working properly (the details of which I will not delve so as to maintain my audience). As for the protester, Josephine Witt, who managed to pass through multiple security checks posing as a journalist, she gleefully tweeted: “I would say, the #ecb ‘s security service is just as good as putins.”

Speaking of Europe…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Google’s not having the best day in Europe either. The all-mighty search engine is getting called out by the European Union for abuses of power. The EU is handing Google a “Statement of Objections,” with an antitrust complaint that accuses the company of favoring and promoting its own services and products over competitors in user search results and comparison shopping. Google has a 90% share in Europe’s search engine market and 35% of Google’s ad revenue comes from Europe. The United States also began a similar investigation but dropped it after Google graciously agreed to make some changes. The changes, however, weren’t enough for companies like Microsoft, Yelp, Expedia etc., who are happy about this probe since they feel that Google’s search engine dominance is making for a very uneven playing field. The EU is also investigating whether Google forces mobile device companies to use them and whether or not those companies are even allowed to tweak Android software.

Shoot ’em up…

Image courtesy of Surachai/FreeDigitalPhotos.net

Image courtesy of Surachai/FreeDigitalPhotos.net

Firearms: Love ’em or hate ’em matters not when there’s money involved. Shares of gun maker Smith & Wesson saw a 13% increase on shares today as the company announced that orders for firearms are picking up.  In fact, the stock hit a high today of $14.75 and is up over 50% since the beginning of 2015. Last year the company took in over $626 million in sales, a record for the company. Even though sales aren’t expected to come close to that figure this year, Smith & Wesson is still expected to rake in between $546 – $550 million dollars –  and no one seems to be taking issue with that. Well, at least not on Wall Street.