Middle Class Feels Worse today then ever....

FYI, this is why the Republicans will lose the election, even if Clinton gets nominated...... http://news.yahoo.com/s/ap/20080409/ap_on_bi_ge/middle_class_poll;_ylt=AmU8V7_UY7vMdyt3B3UrKv9v24cA

Interesting Tidbits from the Pew Research Report...

• Nearly eight in 10 of all people, or 79 percent, said they believe it has become more difficult compared with five years ago for the middle class to maintain their standard of living, up from 65 percent in 1986.


• Politically, 58 percent of middle-class Americans said they believed the GOP favors the rich, while nearly two-thirds say the Democratic Party favors the middle class (39 percent) or the poor (26 percent).


• Middle-class prosperity overall also lagged compared with richer Americans. From 1983 to 2004, the median net worth of upper-income families — defined as households with annual incomes above 150 percent of the median — grew by 123 percent, while the median net worth of middle-income families rose by just 29 percent.

Dan Ross

http://www.BetterBizBooks.com/

FYI, another link with a gif file :)

http://news.yahoo.com/nphotos/Chart-highlights-data-poll-status-middle-class-2c-x-3/photo//080409/480/eae9d18d3ff146c8afc36224f41ffd88//s:/ap/20080409/ap_on_bi_ge/middle_class_poll;_ylt=Ate2l.YtVGKH25LkywU2NnVv24cA

Additional Datapoints re: Vegas and their economy...

The worst hit real estate market Y-Y, tying Miami at down 19% (case shiller index).

Then we look at traffic stats ßinteresting which carriers bring tourists to Vegas. I’d be amazed if traffic held up over the long-term with this economy doing as poorly as it is….

http://cms.mccarran.com/dsweb/Get/Document-219570

Trump not breaking ground on second tower…
http://www.lvrj.com/business/17334999.html

Financing is hurting development of new towers – DUH! – One deal was 80% sold with 20% non-refundable deposits and still couldn’t get going…..
http://www.lvrj.com/business/16776061.html

Dan Ross
http://www.BetterBizBooks.com

More/Less Freebies in 2008 from Casinos?

http://news.yahoo.com/s/ap/20080406/ap_on_bi_ge/casino_comps

My Take: I always love it when a writer choses ATLANTIC city to be representative of the Casino industry? They made $$$ when NYC was there and they were the only ones to get NYC $$$. While that city sees Y-Y declines or flat revenue (from gambling) other markets climb Y-Y and new markets open up.....Talk about pathetic.

The real issue here: With the economy going into the toilet do comps go up or down in Vegas/other areas in 2008? Your opinion?

I personally think they go up SIGNIFICANTLY as people's disposable cash flow is getting crushed right now. Eventually people will figure out that, they need to get people there for them to spend $$$. Hotel room prices need to come down, more freebies need to happen and, with airline prices being through the roof, it wouldn't surprise me to see NEGATIVE or very concerning numbers from Vegas within 3-6 months.

Alot of tourism comes from CA in Vegas. Well, last I checked that economy and FL were getting crushed as people can't use their homes as an ATM anymore.

Dan Ross
http://BetterBizBooks.com/

Cell Phone ONLY usage on the rise....

http://www.informationweek.com/news/telecom/voice/showArticle.jhtml;jsessionid=3JHZ2SGQHZ2SUQSNDLOSKHSCJUNN2JVN?articleID=207001937&_requestid=126604

The number of people without traditional landline phones is increasing, as a growing number of U.S. adults use only mobile phones, a market research firm said Friday.

In a survey conducted in the fourth quarter of last year, Harris Interactive found that about one in seven adults only uses a cell phone, up from roughly one in 10 in 2006. .....additionally, the percentage of adults with cell phones has increased significantly over the last year. Nearly nine in 10 adults have a mobile phone, up from 77% percent a year ago.

My Take:
Interesting technology trend to watch as it will have a profound impact on people's lives moving forward + create winners/losers in the technology space for investors.

Dan Ross
http://www.BetterBizBooks.com

Apple/ITunes #1 Retailer of music

http://www.reuters.com/article/companyNews/idUSN0346155020080404

Apple Inc announced on Thursday that its iTunes music store had surpassed Wal-Mart Stores Inc to become the largest U.S. music retailer. Its announcement was based on consumer data collected in January and February by market research firm NPD that counted 12 songs being equal to one CD.

In February NPD said Itunes had passed Best Buy and Target to get the #2 spot.

My Take:

Here is some great stats for you that really shows you how ITunes will just PULL away in the upcoming months/years from the competition.....

* 70% of Internet paid Downloaded music comes from ITunes. 50% of teenagers didn't purchase a CD last year, up from 33% the prior year. Folks, THEY AREN'T EVEN BUYING CDS! They are going PURELY digital in droves....

http://www.informationweek.com/news/internet/ebusiness/showArticle.jhtml;jsessionid=3JHZ2SGQHZ2SUQSNDLOSKHSCJUNN2JVN?articleID=207001934&_requestid=127349

* Fifty percent of downloaders who are aware of more than one site for digital music consider iTunes the best digital music sales service, Ipsos found. That compares with 41% in 2006 and 33% in 2005. Napster is rated best by 10% of downloaders. That's the same as last year and still lower than Napster's high of 22% in 2005. - Information Week

Dan Ross

http://www.BetterBizBooks.com

Subprime Auto Loans & Tools of the Trade

http://news.yahoo.com/s/usatoday/20080331/tc_usatoday/hightechgeardisablescarifborrowermissespayment

Apparently 7 million autos purchased by subprime auto buyers. Estimated default rate is 30% for subprime auto borrowers vs. 7% for prime auto borrowers.

So many subprime borrowers are installing these lojack devices onto the car. No payment, no car movement or annoying noise, etc.

Companies selling such devices include:
Sekurus
Pay Technologies
PassTimeUSA

So as credit disappears, and investors won't buy the auto securities sold (yup, those loans are collateralized and sold too folks) the auto industry will further contract to "true demand" as I call it.

I think this (auto sales) are going to be a nightmare/HUGE mess this year

Dan Ross
http://BetterBizBooks.com

More signs of a slowing economy & higher consumer costs (inflation)

This is just the first crack to show....I expect some SERIOUSLY ugly numbers in car sales this year. http://news.yahoo.com/s/ap/20080401/ap_on_bi_ge/auto_sales;_ylt=Ag6M.kBLG0ZFVJvH3xBrSxeyBhIF

http://biz.yahoo.com/ap/080401/auto_sales.html

"General Motors and Chrysler both reported a 19 percent drop in U.S. sales on Tuesday. Ford's sales fell 14 percent and Toyota was down 10 percent compared with last March. Nissan fell 4 percent and Honda reported a 3 percent drop."

You see what is going on with your grocery bill? Expect to see that cost spike in the upcoming months....Here are some examples http://news.yahoo.com/s/ap/20080331/ap_on_bi_ge/uneasy_economy_sticker_shock;_ylt=Ap03FsYGP.vCTidFciJ.K9Gs0NUE

Dan Ross
http://www.BetterBizBooks.com