Housing Doom Housing Bubble Blog

A nation that forgets its past is doomed to repeat it. - Churchill

January 7th, 2008

Housing Slump Hurts Starbucks

You can’t say "containment" with a straight face after this- look what is happening with Starbucks:

SEATTLE- Starbucks Corp. fired Chief Executive Jim Donald on Monday, handing the reins back to Chairman Howard Schultz as part of a major restructuring initiative aimed at pulling the company out of a downward slide.

The move, coupled with plans to close some U.S. stores and slow down opening new ones, comes as the world’s largest chain of coffee houses has seen its stock plummet 50 percent over the last year and declining traffic in its domestic stores.

What has happened to this former Wall Street darling?

Starbucks has struggled in recent months as consumers have cut back on spending amid declining home values and higher fuel prices.

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January 7th, 2008

Crack of Doom- “Subprime” is “Word of the Year”

Why does this not come as a surprise? [Thanks L!]

CHICAGO (AP) — Even the American Dialect Society knows how risky home mortgages are these days.

The group of wordsmiths chose "subprime" as 2007’s Word of the Year at its annual convention Friday.

"’Subprime’ has been around with bankers for awhile, but now everyone is talking about ’subprime,"’ said Wayne Glowka, a spokesman for the group and a dean at Reinhardt College in Waleska, Ga. "It’s affecting all kinds of people in all kinds of places."

Everything is getting blamed for subprime these days [I’m waiting to hear, "Yeah I’ve got hemorrhoids, I blame it on subprime."]  Doomers however know that there are a few more issues out there.

So what are the important issues, links, stories out there today?

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January 7th, 2008

Gilbert, AZ home sells four times, keeps failing to close

Hat tip to M for sending over a listing that’s "Always a bridesmaid, but never a bride":: [MLS #2755908 if you have access]

Back on the market 12/13/07.  Deal of the year!!! Fell out of escrow for the fourth time due to buyer’s inability to obtain loans each time.  In the last 139 days house has been in escrow four times for a total of 89 days.  You know the house is gorgeous to have been sold four times.  Need someone with money or ability to obtain a loan to make an offer.

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