The Problems At Wal-Mart Run Deeper Than Those Leaked Emails - Business Insider

The Problems At Wal-Mart Run Deeper Than Those Leaked Emails - Business Insider:

The problem with this article is what Walmart really said this about the money troubles of its customers:

The company’s Chief Executive Mike Duke said in a pre-recorded call the discount giant’s “core customers remain cautious about their finances.” “You can expect us to invest even more in lower prices,” he said.

Company executives said while Wal-Mart is cautiously optimistic about the improved employment reports, gas prices that have crept up again remain a concern. On the grocery front, while inflation is moderating, it continues to be an issue for many of the company’s customers.

So, I responded to a question about speculation in the comments section here.
OK, here is proof that the stock market can be subject to speculation, as the actual supply and demand of stocks, not the value of the company, determines price:

We know that the same principle is being used with regard to housing, as in the bubble crash places, cash hedge fund purchases have been running at 35 to 50 percent of all sales, with prices being driven up.

And here is a Federal Reserve article showing the speculation that results from purchasing a large number of contracts, so that the contracts, not the underlying supply, causes price rises:

 Keep in mind, the Saudis warned the US government of this sort of speculation as we learned in Wikileaks.


Popular posts from this blog

Learn Economics

The Unholy Alliance of Big Banking, Neocons, Big Media and Israel

John Mauldin Discusses What Could Go Wrong