With Central Banks worldwide grasping Socialism from the jaws of Capitalism, markets appeared to have stemmed their collapse for the time being. This hasn't prevented luxury retailers everywhere from predicting a soft holiday season. Last week, Neiman Marcus and Saks both reported that their sales drop reached double digits last month and expect weaker sales for the remainder of the year.
I have a personal anecdote to vouch for the poor luxury retail environment: last Wednesday, I was at Bloomingdale's to purchase a new Theory sports coat (I found it cathartic to drop $700 on a day when I saw my net worth drop many, many times that amount). I asked the sales lady if things have been slow with all the chaos going on in the financial markets. She said that if it wasn't for the rich Mexican tourists, the store would probably have to shut down. Obviously this is simply the observation of a single sales clerk, however, I found humor in the fact that people are now realizing that the economic flow with our neighbors down South is a two-way street.
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