March 19, 2008

Luxuries Become Necessities Become Luxuries

I've often said that as long as Americans are buying $4 cups of coffee, I think the economy is doing just fine. Of course, when the economy starts to catch a cold, the first thing to go are $4 cups of coffee:

Warning of an economic "tailspin," Starbucks Corp outlined long-awaited plans to turn around its U.S. business on Wednesday, but details from new coffee machines to a rewards program for frequent customers failed to excite investors, who sent shares down 4 percent.

Time to do some research on recession and inflation proof industries.

DOWNDATE: I don't think I'll be tipping at Starbuck's any more.

Posted by Charles Austin at March 19, 2008 10:12 PM