• How's The Economy?

If you read between the lines of our recent newsletters, you will understand that I am not particularly optimistic about the economy.

I base my pessimism on the half dozen or so restaurant owners that I frequently speak to. They unanimously state that year to year sales are down and business is very slow. They are just making ends meet.

According to the Conference Board, consumer confidence is down. The Conference Board statistically measures consumer confidence. The October index measured 47.7 compared to 53.4 in September. This is the second straight month where the index has declined. In plain English, economists use these figures to forecast future sales. When people are pessimistic, they don't spend. When people are optimistic, they spend.

In my opinion, we are still in a recession. Things are getting worse very slowly. I am hopeful that things will turn around next year. In my opinion, the government is doing its best to show some optimistic numbers, but they are misleading. Car sales were way up when we had the $4,500 stimulus checks. They went down the following month. Housing prices and sales have gone up. However, this is temporary due to more stimulus money. In fact, this is very much like what, in part, did the US auto industry in.  Car buyers would only buy when there were additional incentives like cash back and 0 % financing.  It became a vicious cycle because eventually the U.S. car companies had conditioned car buyers to stop buying anything unless there was a promotion.

You sort of got the idea that I do not believe that TARP funds are being spent efficiently. Today, I learned something new. I have no idea why I didn't know this and probably none of you are aware of how TARP money is being used.

TARP money (Troubled Asset Relief Program) has given $700 billion to everyone but me (or at least it feels that way). The money is being used to help save our economy and keep banks and other institutions like GM and Chrysler functioning. OK. Maybe we need it. Maybe we don't. Here's what I didn't know.

I did know that much of this money was supposed to be paid back to the government by GM, the  banks, et al. What I didn't know is that when the money does get paid back, our government is reusing the money to issue more TARP aid.

Do you get it? It doesn't sound like the money will ever come back to the taxpayers. Whenever a company repays the money, the government can reuse it for something else. It is likely that we may never get the money back. I suppose this is like lending $1,000 to a close friend. He pays it back and immediately asks for a $1,000 loan. You keep getting the money back, but it keeps going back out. It's like giving that $100 loan to your college student son or daughter. Perhaps one day you'll get the money back (and probably one week before asking for an even larger loan).

Anyhow...I was kind of surprised. I was not aware that TARP funds went through a revolving door.

Finally, here's one final comment about the economy. Most of our readers own retail stores, restaurants or other types of small businesses. When I write about one of my favorite software packages, Norton Internet Security, many of you write to me with alternative views.

When I write about the economy, everyone appears agrees with me. I get lots of emails from equally pessimistic business owners. It is rare that I receive an email from someone who says things are great and business is increasing. I'm guessing the ratio is about 20 to 1 (pessimism vs. optimism).

Let's start helping retail stores and restaurants.

...and just to end this on a positive note...pcAmerica is doing great and we are having our best year yet. Despite the bad economy, there are lots of businesses that are doing well. pcAmerica has had a long history of working harder during bad economic times. Many small businesses do better when things are bad. There are lots of businesses that thrive during a bad economy. I call it the "rat effect." When people get cornered, they put all their efforts into escaping. Lots of savvy business owners actually work better during bad times. They coast during the good times. When things are bad, they use 125% of the brainpower and energy into overcoming adversity.

To read more about the consumer confidence numbers, go to:

http://www.marketwatch.com/story/confidence-drops-for-second-straight-month-2009-10-27 

• Can Copper Bracelets Increase Your Sales?

Hear me out on this one.

I am sure that you have heard that some people believe that wearing a copper bracelet can reduce arthritis pain and inflammation. Magnets can increase your circulation. relieve stiffness and pain.

Wearing a titanium necklace can help you sleep better, relax you, and help you recover from injuries.

Maybe you think I'm crazy but at least 300 major league baseball players wear titanium necklaces. Japanese baseball players wore them first and the titanium necklace fad was then passed on to American major league baseball players.

You can get a Q-Ray bracelet for only $99.95 (and up). The bracelet will rejuvenate you and help you enhance your feelings of well-being and get more out of life. That's a steal for $99.95. It used to also help you with pain relief, as per the company's advertisement, except the FTC made them cease that advertising claim. 

Do any of these bracelets work? I'll let you decide on your own.

Many ballplayers and people with chronic pain believe that these bracelets work. Most scientists believe that it is not the metal within the bracelets that make them work, it is the brain that makes them work. People who wear the bracelets believe in them. That's what makes them work.

The power of your mind and the mind of your retail or restaurant staff can have the same power as the bracelet. If you believe that by focusing on improving your business, it will happen. That's why those businesses that believe in themselves and their businesses can thrive in a bad economy.

You can use the "bracelet effect" to increase sales in your store. If you lead and if you believe in your products, you can motivate your staff to focus in a similar manner. If your staff believes that they can make things better, they will make things better. If you believe you can overcome a bad economy, it will happen.

If you are interested in learning more about the company who sells the Q-Ray bracelets, go to:

http://www.qray.com/Default.aspx

If you are interested in reading the October 27th Wall Street Journal Article called Metal: Panacea or Placebo?, go to:

http://online.wsj.com/article/SB10001424052748704335904574497463498601986.html

If you don't have a subscription to The Wall Street Journal and wish to read the entire article, write to me at:

hgosman@pcamerica.com

...and no, I don't own one of these bracelets. However, I do believe that if you believe that you can make your business grow, it will grow.