Two sure signs the consumer is moving back to saving instead of spending.
- Starbucks says it’s going to cut 600 stores and lay of 12,000 Barristas.
- Auto sales fell across the board. Chrysler fell 36%. Unilike GM and Ford, they have no foreign business where both have been selling fuel efficient cars for years. Chrysler is road kill. The LBO can’t support all the borrowed money. As usual, Chrysler executives are in a total state of denial as if $5 gas is just a temporary problem.
Auto executives had little choice but to take a philosophical view of the market. “This too shall pass,” said Steven J. Landry, head of North American sales for Chrysler. “When it does, we want to be prepared.”