Professor Elam

Consumers are slacking off at Starbucks.  The WSJ reports that gasoline consumption is down for the first time in 16 years.  No wonder the price just went to an all time inflation adjusted high.  The market will take care of this inflation.  Which is to say that consumers are aware of the increased cost of everytning, see the previous post concerning the weak dollar. Retail sales are slowing, the Retail SPDR is actually up, why?>  Because WMT and other big box retailers are a huge weighted part of that SPDR. When folks go to Wal Mart instead of say Dillard’s WMT benefits.

Actually the trend to $3.00 coffee at Starbucks has been amazing, will it really abate?  I dunno, a Starbucks is about the same price as a gallon of gas, and a lot more fun.