Irrational Behavior

This is a Company I would hate to work for, as it contracts huge In-Store Operating Costs, based on expensive Inventory products and light Consumer traffic even in the best of Times. Closure of 150 Stores would allow switch of Inventory to the remaining Stores, but Job Cuts will lessen the desire to Shop in a industry dependent on a slick Sales pitch. I have previously been somewhat critical of Circuit City’s business format, and this advance pronouncement of business decisions does not help Employee Morale, or instill Confidence among Consumers dependent upon highly specialized Aid in both Purchasing and Installation of Product.

Here is another example of Irrational Stress placed upon the Market by amplification of fears. OPEC should not announce its decision to Cut Oil Production, if it does. OPEC member nations are committed to their Construction schedules, and will find it hard to sell less than they can produce in the first place. Such announced decision would in no way impact the Market favorably for Themselves, and could only harm the Demand levels for Oil. Idle Threats will only destabilize the Markets further, disturbing business confidence. It is noteworthy that the two OPEC nations least capable of sustaining a Production Cut, Iran and Venezuela, are the most vocal in calling for those Cuts.

Employees of financial firms continue to show great immunity to Market forces, as this Guardian article defines. Bonuses and Pay packages continue to mount, even though the relationship between Bonus and Profit continues to expand. I wonder if the industry can maintain its Pay schedule through any Bankruptcy proceedings in the future. Golden Parachutes may be the last thing to go, where Employees may lose their desk, chair, and computer consuls before their Paychecks. One must actually ask why such Stories do not appear in American Papers. lgl