Company Man asks 'Kohl's - The Rise and Fall?' A tale of the Retail Apocalypse

I closed At Home files for bankruptcy, a tale of the Retail Apocalypse and tariffs with an observation and program note: "Erik mentioned Kohl's in his video. They're next. Stay tuned." Watch Company Man ask Kohl's - The Rise and Fall?

America's largest department store chain has been having trouble. This video explores the company's initial rise before trying to identify five of the main reasons behind its recent struggles.

Here are Company Man Mike's five reasons for Kohl's struggles.


Kohl's inventory issues are the opposite of Joann's, which suffered from too little inventory, not too much. That's difficult to solve if the suppliers aren't there. Too much inventory? Reduce price and clear it out. That's easy, even if it results in a loss, as happened in 2022.

Poor leadership is an issue Company Man Mike has seen lots of, most recently in Rite Aid and Walgreens. Ashley Buchanan's actions during his tenure were scandalous enough that Erik of Retail Archaeology remarked on them in his video, What Is Going On At Kohl's.

Let's take a look at what is going on Kohl's.

Looks like Buchanan was thinking with the wrong head. Good riddance! Also, watching this explains why Erik made the comparison to Kohl's in his video about At Home.

Back to Company Man Mike's list. External factors include both the pandemic and tariffs, the former of which has been an ongoing issue this decade and the latter looks like one I'll keep seeing as long as Donald "Hoover Cleveland" Trump is in office. Sigh.

Both Company Man Mike and Erik noted the Sephora store-within-a-store replacing the jewelry display could be a mistake, although Company Man Mike tied it into identity issues. Alienating core customers while trying to attract new ones is something he saw in Hooters. I personally saw this in drum corps during the 1990s and early 2000s as DCI decided that high school band kids were the future, while the alumni were the past. The alumni were pissed, but DCI won that contest, a conflict I partially described in The Archdruid and I talk drum corps. This isn't the post for the rest.*

Too much debt is always an issue, but the reason Company Man Mike gives for the debt, Kohl's pursuing stock buybacks and increasing dividends instead of investing in the company, is relatively rare, which I mentioned in Company Man asks 'The Decline of Weight Watchers...What Happened?' A tale of the Retail Apocalypse (and Ozempic).

While I've often seen private equity as a cause of debt leading to failure, I've come across stock buybacks by themselves just three times, and only seen both once in the case of Ruby Tuesday. Now I can say I've run across the combination twice.

At least private equity doesn't seem to be one of the reasons for Kohl's struggles.

I may have one more Retail Apocalypse post tomorrow, or I might change subjects. Stay tuned to see which I do.

*Drum corps season begins tomorrow, so I'm not surprised this comparison occurred to me.

'SNL' laughs at Trump's tariffs and stock market crash

I closed the body of 'Star Trek: Strange New Worlds' for First Contact Day, a holiday special with a program note.

In the meantime, Stay tuned for the highlights of tonight's Saturday Night Live. Let's see how they make tariffs and a stock market crash funny.

Watch Trump Tariff Cold Open to find out.

President Donald Trump (James Austin Johnson) addresses his tariffs and their impact on the stock market during a speech.

That explanation of the tariff equation made about as much sense as the real one and was a lot more fun. Also, James Austin Johnson's Donald Trump will be very disappointed to find the real McDonald Island is a cold place inhabited by penguins, not a tropical paradise with fast food. That's ironic since my original nickname for Hoover Cleveland was The Penguin. Weekend Update acknowledged that fact in Trump Tariffs Cause $6 Trillion Loss, Tesla Stock Plummets 10%.

Weekend Update anchors Colin Jost and Michael Che tackle the week's biggest news, like Trump imposing worldwide tariffs.

Six trillion dollars lost in one week? Yikes! Speaking of lost money, the next segment featured Retail Apocalypse news, Hooters Files for Bankruptcy, Subway Unveils Footlong Doritos Nachos.

Weekend Update anchors Colin Jost and Michael Che tackle the week's biggest news, like a 1-year-old eating his grandfather's ashes.

Hooters' bankruptcy deserves more than a one-liner declaring the chain's business model a bust, so I plan on blogging about it tomorrow or Tuesday. Stay tuned.

Follow over the jump for the rest of last night's highlights.

Kosta, Colbert, and Meyers take closer looks at tariffs on Flashback Friday

Yesterday's bad news was tariffs and, of course, tariffs were the story that stuck around. The Daily Show was among the shows that featured them as the topic of their monologues. Since it had the best preview image, I'm sharing Trump’s Tariffs Send Markets Plunging and Penguins Waddling to a Trade War first.

Michael Kosta recaps Trump's tariffs fallout, from a stock market crash to cabinet officials taking to the airwaves to cheerlead the move. Plus, Grace Kuhlenschmidt checks in on the penguins who now find themselves in a trade war.

Imposing tariffs on a territory inhabited only by penguins was the funniest thing about this mess. It shows that Hoover Cleveland and whoever was actually doing his work just went down a list and assigned tariffs without checking to see if any people actually lived there. *Eye roll* I'd say we're living in Idiocracy except that's science fiction that takes place in the 26th Century. We're really living in a kakistocracy, "government run by the worst, least qualified, or most unscrupulous citizens." How about all three?

Speaking of "the worst, least qualified, or most unscrupulous citizens," the title of Stephen Colbert's monologue was Trump Jets Off To Watch Golf After Triggering Global Market Meltdown | No Tariffs On Russia.

President Trump's tariff announcement, which sent stocks into a nosedive and enraged America's allies around the world, mysteriously excluded one major country: Russia.

No tariffs on Russia? I'm not surprised. As I wrote yesterday, "Maybe it's good for his fellow billionaires, including Vladimir Putin, his partner in a bad bromance. I have long had my suspicions." This just reinforces them.

My wife and I watched both Colbert and Seth Meyers, who examined the situation in Trump's Insane Tariff Plan Tanks Stock Market, Risks Economic Collapse as Prices Rise: A Closer Look.

Seth takes a closer look at Trump implementing massive tariffs on almost every country in the world, raising prices for American consumers, escalating a pointless trade war with allies and pushing the economy into a self-inflicted meltdown.

Seth mentioned his wife's shopping list, which reminds me that my wife went shopping at Costco yesterday. She said it reminded her of the early days of the pandemic, when everyone was buying toilet paper, including her. Doom spending, anyone?

I close this portion of the post with the cold open of The Late Show, The World Reacts To Trump's Tariffs.

The president thinks his man-made economic disaster is going "very well."

He would think so. In reality, we're partying like it's 1929.

Follow over the jump for a retrospective of the top posts from last year featuring late-night talk-show hosts examining Donald "Hoover Cleveland" Trump's second term so far to observe Flashback Friday.

Company Man asks 'The Decline of Big Lots...What Happened? ' A tale of the Retail Apocalypse

I've been expecting a video from Company Man Mike on Big Lots! filing for bankruptcy and he finally uploaded one yesterday, The Decline of Big Lots...What Happened?

One of the country's biggest closeout retailers has filed for bankruptcy and nearly shut down entirely. This video tries to identify the biggest reasons behind the struggles of Big Lots.

Here is Company Man Mike's four reasons for the failure of Big Lots!


What struck me most about this list is how much Big Lots! thrived during the pandemic because of the chain's shift to selling more furniture. As I wrote in 2020, "If one has to shelter in place, then one might [as well] find a better place to find shelter." That, or make one's existing shelter a better place through new furniture. Unfortunately, furniture is a durable good, so once the demand was met, sales collapsed once the public health emergency ended, leaving Big Lots! holding the bag. It makes me wonder how well Zoom is doing. Better than Big Lots! I'm sure.

The chain's boom and bust contributed to stock buybacks being Company Man Mike's final item. I've only seen that as a cause for a company's failure three times, GNC, Bed Bath & Beyond, and Ruby Tuesday. It's much more common to see private equity being a cause, as I documented most recently in Company Man asks 'The Decline of Party City...What Happened?' A tale of the Retail Apocalypse. In this case, private equity looks like it will save the company, at least for now.

No bankrupt company's story seems to be complete without videos from both Company Man and Bright Sun Films. I'm awaiting Jake Williams' contribution to this tale. In the meantime, he just uploaded a documentary about Payless Shoesource, which would be a good subject for a Wayback Wednesday, Throwback Thursday, or Flashback Friday. Stay tuned.

GameStop, Carl Icahn, TikTok, Cuban baseball, and Victoria's Secret subjects of Outstanding Business and Economic Documentary at the News & Doc Emmy Awards

I'm returning to awards show coverage after posting WGA returns to the bargaining table, a strike update yesterday with the nominees for Outstanding Business and Economic Documentary at the 2023 News & Documentary Emmy Awards. Here are the nominees.

Outstanding Business and Economic Documentary
Eat The Rich: The GameStop Netflix
Icahn: The Restless Billionaire HBO Max
Independent Lens TikTok, Boom. PBS
POV The Last Out PBS
Victoria’s Secret: Angels and Demons Hulu

This is the only nomination for each of these documentaries, so I can't handicap their odds on that basis. Instead, I'm embedding their trailers. Maybe then I can make a guess.

I begin with Eat the Rich: The GameStop Saga | Official Trailer | Netflix.

This humorous documentary series follows a group of millennial misfits who banded together online to rescue their beloved GameStop from the clutches of Wall Street bigwigs, in a viral David vs. Goliath story for the 21st century.

Ah, yes, GameStop, a tale of the stock market and Retail Apocalypse. This looks like the most fun documentary of the field. It's also the one I'm most connected to, as my wife got involved with Wall Street Bets and Robin Hood. That made investing fun, even if it may not have been as profitable as she and I might have liked.

The next nominee also examines stocks and investing, Icahn: The Restless Billionaire | Official Trailer | HBO.

Unstoppable. Polarizing. Legendary.

The HBO original documentary #IcahnHBO offers unprecedented access to the the provocative, straight-talking billionaire financier, Carl Icahn.

Icahn the icon — I feel like I've been hearing about him most of my adult life. While the GameStop documentary looks like fun, Icahn's story is probably more important in the grand scheme of things. That written, I've only mentioned the man once before, and that was in passing. It's about time he got more scrutiny here.

I'm mixing and matching for the next nominee. First, TIKTOK, BOOM (Trailer) from ZFF Zurich Film Festival.


Next, the description from TikTok, Boom. | Official Trailer | Independent Lens | PBS.

What does it mean to be a digital native?
TikTok, Boom. dissects the platform along myriad cross-sections—algorithmic, socio-political, economic, and cultural—to explore the impact of the history-making app. Balancing a genuine interest in the community and its innovative mechanics with a healthy skepticism, delve into the security issues, global political challenges, and racial biases behind the platform. Featuring Gen Z influencers like Feroza Aziz, Spencer X, Deja Foxx, and Merrick Hanna.

Speaking of more scrutiny, it's about time a documentary examined TikTok in the same way The Great Hack and The Social Dilemma examined Facebook and to a lesser extent Instagram and Twitter.

Now for sports as a business story, The Last Out | Official Trailer | POV | PBS.

Three Cuban baseball players leave their families and risk exile to train in Central America and chase their dreams of playing in the United States. At the shadowy nexus of the migrant trail and pro sports, The Last Out chronicles their difficult journey, from multi-step immigration obstacles and learning English to the broken promises and dubious motives of agents. Official selection, 2020 Tribeca Film Festival (premiered in 2021). A co-presentation with Latino Public Broadcasting.

The Last Out made its national broadcast and streaming debut on the PBS documentary series POV and pbs.org/pov on Monday, October 3, 2022 on PBS!

On the one hand, this is probably the most moving human story of the lot, which should work in its favor. On the other, this is, by far, the least viewed trailer of any of the nominees. I'm the 168th person to watch it. It's hard for a nominee to earn votes if no one is watching it.

In contrast, the most viewed trailer is Victoria's Secret: Angels and Demons | Trailer | Hulu with ~336,000 views.

The story behind the brand that dominated the malls of America. Uncover Victoria’s Secret: Angels and Demons on July 14.

As I exclaimed the one and only time I mentioned Victoria's Secret before, oh my. I had no idea Jeffrey Epstein was involved with this business, too. No wonder the trailer has so many views; it's a business story about using sex to sell its product that includes a sex scandal. Whether those trailer and presumably program views result in the producers bringing home a trophy is another matter — remember, electorates matter — but at least the voters will have watched the show. That makes this the nominee I expect to win, even though it's not my personal favorite.

I will continue my awards show coverage, but I might revisit the SAG-AFTRA strike tomorrow first. Stay tuned.

Previous posts about the 2023 News & Documentary Emmy Awards

• R.I.P. Sinéad O'Connor, who died one day before 'Nothing Compares' earned two News & Documentary Emmy Awards nominations
• '100 Foot Wave' has the most nominations but experts think 'The U.S. and the Holocaust' and 'The 1619 Project' have best chances to win Outstanding Documentary or Nonfiction Series at the Emmy Awards
• 'Super/Natural,' 'Wildcat,' and other nature nominees at the News & Documentary Emmy Awards for International Tiger Day
• 'Good Night Oppy' has six nominations at the News & Documentary Emmy Awards, including Outstanding Science and Technology Documentary and Best Documentary
• HBO dramas and 'SNL' split the nominees for Outstanding Short Form Nonfiction or Reality Series at the 2023 Emmy Awards
• 'Roadrunner: A Film About Anthony Bourdain' no longer listed among News & Documentary Emmy nominees
• Two Emmy-nominated documentaries about Watergate for Veep Day

Wall Street Journal and CNBC explain the collapse of Silicon Valley Bank

I've already shared a comedic closer look at the reactions to the failure of Silicon Valley Bank, so it's time for a serious examination of the bank collapse, beginning with The Wall Street Journal explaining How Silicon Valley Bank Collapsed in 36 Hours | What Went Wrong.

Silicon Valley Bank collapsed in less than two days when FDIC regulators seized control. In that time, the bank’s stock price fell over 60%, a $42 billion bank run was sparked and a liquidity crisis ensued.

Here’s how SVB’s collapse became the second largest U.S. bank failure ever, and what it means for customers in the future.

I mentioned that increasing interest rates, which is inverting the yield curve, work by reducing demand in Vox asks 'Why is everything getting so expensive?' They also disrupt investment strategies, like SVB's, when they change rapidly. That led to a chain reaction ending in SVB's collapse, a demonstration of "everything is connected to everything else and there is no free lunch." However, it might not end there, as CNBC asked Did Silicon Valley Bank Start a Banking Crisis?

Silicon Valley Bank is no more. The question now, though, is whether the collapse of this tech-friendly regional bank is the start of something more serious — or just what happens when higher interest rates give companies less room for error.

So will we be partying like 1929? Or will the FDIC, Federal Reserve, Treasury Department, and "too big to fail" banks contain the damage? I hope for and expect the latter, but stay tuned to find out. At its core, this blog is still about collapse and this is exactly the kind of story I created this blog for.

Speaking of staying tuned, come back tomorrow for the Sunday entertainment feature, which will not be about "Saturday Night Live" — no new show until April First, no fooling!

Party City files for Chapter 11 bankruptcy, a tale of the Retail Apocalypse

While Bed Bath & Beyond is facing bankruptcy, Party City has actually filed. Erik of Retail Archaeology shared a ground-level view of the story in Party City: The Party Is Over!

In this episode we take a look at Party city and discuss their recent bankruptcy filing and the challenges they are facing.

Erik thought that, if Party City survived the pandemic, it would have gotten through the worst and be likely to survive. My experience is that this is not always the case. The first Retail Apocalypse story I covered, Borders Books, happened two years after the Great Recession officially ended, so I'm not surprised that Party City declared bankruptcy now.

Yahoo Finance showed an aerial view of the story in Party City files for Chapter 11 bankruptcy, stock bounces.

Yahoo Finance Live’s Brad Smith reports that Party City has filed for Chapter 11 bankruptcy.

They seem even less optimistic than Erik, which is saying something.

Speaking of Erik, here is his video from November 2018, asking Party City: A Decrease In Partying?

In this episode of Retail Archaeology we take a look at Party City and talk about the recent drop in the shares of their stock.

Party City has been in trouble for a while, which fits one of the patterns for chains that fail during the Retail 'Apocalypse. All of them had issues that brought them down when a crisis hit.

All three videos mentioned the helium shortage increasing the prices of balloons and decreasing their sales. That's something I haven't blogged about but should. In the meantime, stay tuned for this year's Razzie nominations. It's Morbin' time!

Bed Bath & Beyond facing bankruptcy, a tale of the Retail Apocalypse for Friday the 13th

It's Friday the 13th! This year, instead of exploring the psychology and history of the day or spooky theme park attractions, I'm examining a real-life tale of woe, Bed Bath & Beyond’s Potential Bankruptcy, Explained, uploaded by the Wall Street Journal today.

Bed Bath & Beyond recently warned it may be filing for bankruptcy in just a few weeks. WSJ’s Suzanne Kapner explains the roller coaster of events over the past six months that led to this low point for the company.

The Wall Street Journal examined the longer-term history of the chain in July, when it asked Bed Bath & Beyond Is in Crisis Mode. What Went Wrong?

After years of declining sales, Bed Bath & Beyond is facing an existential crisis. WSJ’s Suzanne Kapner explains why the company has fallen on hard times and looks forward to what’s next for the veteran retailer.

None of this comes as a surprise to me, as I posted CNBC warns that Bed Bath & Beyond is 'facing extinction,' a tale of the Retail Apocalypse nearly four years ago. I was fairly sanguine then, writing "the chain is facing a crisis, but it's not in imminent danger of going out of business," but became more concerned in 2020, when I wrote "I'm not as calm about the fate of the chain now, if only because 100,000 dead and 40 million unemployed in the U.S. has made the economic environment much more precarious for retailers other than daily essentials such as food and medicine, which I shopped for yesterday and picked up without ever entering the store." I'm only surprised it took me this long to return to the topic.

Follow over the jump for more on Bed Bath & Beyond from CNBC and Yahoo Finance.

'Bankrupt - JCPenney' by Bright Sun Films, a tale of the Retail Apocalypse

Instead of covering more awards shows, as I promised yesterday, I'm posting another tale of the Retail Apocalypse.* Watch Jake Williams of Bright Sun Films present Bankrupt - JCPenney.

With over 1,500 stores across the country and over 200,000 employees, the J.C. Penney Company was a mega retailer in the United States. It grew from humble beginnings with its founder James Penney and grew into an iconic retail institution in America. However those golden years only lasted until the early 2000's, when the retailer experienced a violent downturn until its eventual bankruptcy in 2020. Join me as I find out how this company went from billions to nothing.

I had mentioned that executives at JCPenney scored bonuses before declaring bankruptcy, but I hadn't followed the story beyond JCPenney having been saved two years ago. I also hadn't realized that the companies who rescued JCPenney were also among those interested in buying Kohl's. It's a good day when I learn something new.

*I have the outline of the first awards show entry already written and I plan on posting it Monday. In the meantime, stay tuned for a recap of tonight's "Saturday Night Live" episode.

Wall Street Journal and CNBC explain 'Why a 2022 Recession Would Be Unlike Any Other'

With the likelihood of a second quarter of declining GDP being announced on Thursday, it's time to update CNBC explains 'Why Recessions May Be Inevitable' with the Wall Street Journal explaining Why a 2022 Recession Would Be Unlike Any Other.

Is the U.S. in a recession? Many economists think that’s a possibility and by some measurements, it may have already started. But why aren’t people losing their jobs?

The GDP numbers may signal a recession, but consumers and possibly even businesses aren't showing signs of it. We may end up having a "Wile E. Coyote moment" where both look down and realize they are over an abyss and then start falling, but that hasn't happened yet. If it does, then I expect it would be like the recession I predicted at the end of 2017 to happen by the end of the last decade, not the one we actually got in 2020 because of the pandemic.

That was the serious examination. As a contrast, I'm sharing CNBC Television's Jim Cramer breaks down 3 possible recession scenarios to show how to make lemonade out of lemons for fun and profit.

CNBC's Jim Cramer broke down three possible scenarios that could happen if the economy enters a recession on Thursday's episode of "Mad Money."

While this video reminds me of my complaints about CNBC viewing the economy through the lens of investing, I couldn't resist Cramer's comedy and sense of humor making investment advice and education about the economy entertaining.

I may have more about the economy, guns, or the Emmy Awards tomorrow. I may even combine two of them. To find out, stay tuned.

Delete Spotify trends after music streaming service chooses Joe Rogan over Neil Young

Man plans and G-d laughs: "Now I'm done posting about the pandemic this week, simply because the week is over, and for the month, as tomorrow is Sunday, when I usually write the weekly entertainment feature..." Hahahaha! I failed to account for an entertainment story about the pandemic that I found worth blogging about despite my declaration yesterday.* Watch MSNBC reporting Spotify agrees to take Neil Young's music off the platform on Wednesday.

Spotify said Wednesday that it has agreed to remove Neil Young's music after the singer-songwriter said he wouldn't share the platform with podcaster Joe Rogan, who has been criticized for spreading vaccine misinformation. The panel discusses.

I agree with Dr. Katrine Wallace; Joe Rogan is spreading misinformation that reinforces vaccine resistance, leading to the unvaccinated dying. Unfortunately, I also agree with Rolling Stone writer Andy Green and Ari Melber that Spotify chose Rogan over Neil Young because of the money. That may have turned out to be short-sighted, as CNN reported Friday '#DeleteSpotify' goes viral after Joe Rogan's podcast draws criticism.

Joe Rogan's podcast is under fire for peddling misinformation, as guest Jordan Peterson's comments on race, climate, gender, and Covid-19 drew controversy...CNN's Paula Newton has the story.

My wife and I were among those who canceled our Spotify subscriptions Friday. After listening to Peterson's comments about climate, I'm doubly glad that we did. We don't want our money supporting that.

The Hollywood Reporter uploaded Joni Mitchell Says She Will Stand With Neil Young & Remove Her Music From Spotify yesterday, showing Young is getting support from other artists.

Joni Mitchell said she will remove her music catalogue from Spotify in solidarity with Neil Young, according to a message posted to her official website on Friday evening.“I’ve decided to remove all my music from Spotify. Irresponsible people are spreading lies that are costing people their lives. I stand in solidarity with Neil Young and the global scientific and medical communities on this issue,” Mitchell wrote in the brief note on her website.

I conclude by noting that Nils Lofgren has also had his music removed from Spotify and Spotify stocks have lost $2 billion, about 6% of their market capitalization since this controversy started. As I wrote, choosing Rogan over Young for the money may have been short-sighted.

*The other choices were awards show nominations, a bunch of which came out last week, and school districts banning books. I decided the first was too much work — this blog is a hobby after all — and the second too depressing. I'd rather blog about something that catches my interest. Here's to it not being the pandemic again tomorrow.

CNBC asks 'Is Marijuana Legalization Inevitable in the U.S.?' plus New York and Virginia legalizing marijuana

As I told my readers yesterday, "stay tuned for marijuana legalization for 4/20." I have just the video for the today's subject, CNBC asking Is Marijuana Legalization Inevitable In The US?.

Every ballot initiative involving the decriminalization or legalization of marijuana passed in the 2020 election. The Democratic-controlled House also passed the MORE Act in early December, which would legalize marijuana at the federal level and implement sweeping regulations surrounding the drug. These developments reveal something important about the shift in the marijuana debate: Marijuana may be one of the truly bipartisan issues in the U.S. right now.
...
CORRECTION (January 4, 2021): At 0:55 and 6:31, the map mislabels the legality of recreational marijuana in Illinois. The state has legalized marijuana for both recreational and medical use. At 12:20, a graphic used an incorrect photo to identify Alaska Rep. Don Young

That was a very good history and summary of the state of the issue as of January 2021. Since then, New York and Virginia have legalized recreational use of marijuana. Follow over the jump for video news reports about them.

'The Rise and Fall of American Malls' updates tales of the Retail Apocalypse for the tenth year of Crazy Eddie's Motie News

I just realized that Earth Day is this coming Thursday, so I am moving up my planned post about the Retail Apocalypse from Friday to today and the retrospective about entertainment from Thursday to Friday.* It helped that Bloomberg Quicktake uploaded The Rise and Fall of American Malls last week, making it the perfect video to update my readers about the Retail Apocalypse.

Part social gathering spaces, part retail meccas, malls were once the centerpiece of the suburban American experience. Now, fac

CNBC asks 'Why Is Short Selling Legal?'

Short selling and the social media efforts to thwart it provided me a lot of material this year, alternating between silly and serious beginning with Noah, Colbert, Kimmel, and Corden explain GameStop, a funny tale of the stock market and Retail Apocalypse, then CNBC, The Economist, CBS This Morning, and Retail Archaeology explain GameStop, a serious tale of the stock market and Retail Apocalypse, and most recently Samantha Bee, Trevor Noah, and Legal Eagle have more funny things to say about GameStop, a tale of the stock market and Retail Apocalypse.* It's time for a serious examination of the topic as CNBC asks Why Is Short Selling Legal?

When a stock rises, all of its investors turn a profit, right? That’s not the case for short-sellers, who look for profit by betting against the success of a company or the market. The recent events surrounding Tesla, Reddit, Robinhood and Gamestop’s short squeeze have put short selling under the limelight. So how did the practice of betting against the U.S. market become such a common, legal practice? Watch the video to find out.

The recent events surrounding meme stocks and GameStop’s short squeeze have put short selling, one of the oldest practices in the stock market, directly under the limelight.

The video made three points in favor of short selling. First, it is one major way to make money off a declining market. Second, it provides liquidity, the ability to turn stocks into cash, during a declining market. Third, it's a way of "discovering price," what the true value of a company is in the face of fraud, mismanagement, and hype. I won't dispute any of that, but I will add the following quote from the video's description.

“I think the main reason people dislike short selling is that something just feels bad about profiting from someone else’s failures,” said Sasha Indarte, an assistant professor of finance at the University of Pennsylvania’s Wharton School. “Short sellers gain when someone else loses. It’s like if you took out an insurance policy against your neighbor’s home and your neighbor’s home was destroyed.”

That pretty much sums it up. Just don't confuse buying the insurance policy with setting the fire, although it would look like a motive.

I shouldn't be surprised that CNBC reported support for short selling as well as the moral case against it. As I quoted TVTropes 10 years ago, "CNBC is watched by people who think they own the country," so it will take the side of the markets. I expressed a more detailed complaint about CNBC two years ago.

While the channel is more entertaining than its competition (I'm looking at you, Bloomberg), it has a perma-bull attitude — it's always a good time to buy stocks, according to CNBC. My wife and I don't believe that, as we got out of the stock market about six months ago. We don't care that the values recovered; it was too stressful going down.

We have since returned to the stock market. During the past two years, we have developed a better tolerance for uncertainty. I suppose living through a pandemic did that for us, a silver lining to the storm clouds the past year has brought us.

Stay tuned for tomorrow's post about the Vernal Equinox, which will be the final entry of the tenth year of this blog. After that, it will be Nowruz, the blog's tenth birthday, and the beginning of my eleventh year of blogging here.

*I have a somewhat funny video about GameStop from Business Insider to post next week along with another one about Twinkies to continue the alternation between silly and serious. Consider this footnote to be a preview of coming attractions.

Samantha Bee, Trevor Noah, and Legal Eagle have more funny things to say about GameStop, a tale of the stock market and Retail Apocalypse

It's time to update GameStop with another funny tale of the stock market and Retail Apocalypse. I begin with Samantha Bee asking The Stonk Market: 2008 All Over Again?

GameStop, Reddit, and hedge funds, oh my! It's the upper middle class vs. the rich and we just can't wait to see who wins this class war! Maybe it'll be ordinary Americans if the SEC can actually start regulating the market?

As always, Bee and her writers have the most distinctive takes on an issue of all the late night comedians. I'm glad she examined the good government angle of regulating the markets instead of just laughing at both Wall Street and Reddit. Speaking of which, I'll get to Elizabeth Warren's comment about the SEC not knowing if what the stock market traders on Reddit did was legal later. Right now, I'm sharing Trevor Noah explaining Here’s How Wall Street Has Always Manipulated the Markets.

Day traders took down a massive hedge fund by artificially inflating GameStop stock, and now, Wall Street is whining about it. But Wall Street manipulating the market is nothing new.

Good lord, JP Morgan's manipulation of electricity prices reminds me of Enron. That's a name I haven't mentioned here for 10 years. Back then, I recommended "Enron: The Smartest Guys in the Room" as a documentary for my students to watch. Since then, I've moved on to other suggestions, but I'd still accept a review of the Enron documentary for extra credit if they submitted it. Also, manipulating aluminum prices (hey, Trevor, there is no "ium" in the name of that element on this side of the Atlantic, so I'm pleased that you got with the program), is a new one on me, but I'm not the least bit surprised. Anything to make a buck.

Both Bee and Noah concentrated on Wall Street's bad behavior in their monologues, while Legal Eagle looked at the actions of the traders on Reddit as well in Illegal Trading on GameStop? or WallStreetBets: The Stonkening.

Did the hedge funds illegally manipulate the market? Did the redditors of Wallstreet Bets? STONKS

As Elizabeth Warren said in the clip Bee included in her monologue, the SEC doesn't know if what went on with GameStop was illegal, so as Legal Eagle says, "it depends." I bet the traders on Reddit hope it isn't. Otherwise, the SEC will say to them what Legal Eagle says to his viewers to close his videos: "I'll see you in court."

CNBC, The Economist, CBS This Morning, and Retail Archaeology explain GameStop, a serious tale of the stock market and Retail Apocalypse

I concluded Noah, Colbert, Kimmel, and Corden explain GameStop, a funny tale of the stock market and Retail Apocalypse with "That's it for today's funny takes on GameStop. I plan on posting serious ones tomorrow. Stay tuned." I begin with CBNC's GameStop Mania: How Reddit Traders Took On Wall Street, which the financial channel just uploaded to YouTube this morning — perfect timing!

GameStop has captivated Wall Street’s attention. The stock’s rise has been otherworldly. But the obsession isn’t just with the rally, it’s with who’s making money off of it. Legions of individual investors -- regular, everyday people -- gathered on social platforms like Reddit and decided to send GameStop stock, as they would say, to the moon. This week, GameStop shares soared 400%, a hedge fund had to get bailed out, and online trading platforms had to restricting trading on GameStop and other hot stocks. Here’s how the GameStop saga played out, and what’s next as lawmakers turn their sights on the story that took over Wall Street this week.

That's a good explanation, although favors the long-time and institutional investors over the Redditors, who may not have been regular investors and watchers of CNBC before the COVID-19 pandemic; as New York Magazine points out, they were probably sports bettors who had to find a new way to satisfy their gambling fix while sports were on hold. Still, it's up to the high journalistic standards and production values I expect out of CNBC. The network may have a perma-bull attitude and prioritize entertainment as much as information, but they do have to give their viewers good advice or they'll leave for Bloomberg or the Wall Street Journal. Also, I'm glad they interviewed Senator Elizabeth Warren, who, along with Kourtney Gibson, warned that this may not be the "David versus Goliath" story most people are making it out to be. In the later stages, big investors may have joined the Redditors in the short squeeze.

The Economist also uploaded GameStop: what it reveals about the US stockmarket this morning — again, perfect timing!

The frenzied rise of GameStop’s share price baffled Wall Street and panicked the US Treasury. What does the GameStop story reveal about American stockmarkets? Our experts answer your questions.

Chapter titles:

00:00 - GameStop surge explained
00:55 - Was Robinhood right to restrict trade?
01:56 - Short selling and short squeezes
03:05 - Is the stockmarket fair?
06:03 - Will it lead to more regulation?
06:51 - Is the US stockmarket overheated?
10:09 - Is this a trend?

Instead of letting the experts guide the discussion, The Economists let their readers ask the questions and had their experts respond. I find that democratic approach fitting given the populist nature of the interest in GameStop, AMC, Nokia, Blackberry, and, as Trevor Noah mentioned in yesterday's entry, Tootsie Rolls. About the only gatekeeping was by the editors in selecting the questions and editing the video. I don't begrudge them that; they were only doing their jobs to maintain quality and pacing.

CBS This Morning got into the act Thursday by following the prevailing narrative, Small investors turn GameStop into a Wall Street "David and Goliath" story.

Small investors using a Reddit forum appear to have driven the stock of the struggling retail chain GameStop up nearly 800% and it's causing some major financial losses for seasoned Wall Street investors. Vladimir Duthiers has the details. CBS News business analyst Jill Schlesinger also joins "CBS This Morning" to discuss.

I found this valuable because, in addition to providing a third perspective to the story, I learned something new about CBS News anchor Vladimir Duthiers; he used to be a Wall Street executive. That means that I will pay more attention to his takes on investing and the economy from nowon, just as I do to Ali Velshi and Stephanie Ruhle on MSNBC and NBC News.

Follow over the jump for more from CNBC and Retail Archaeology about GameStop.

Noah, Colbert, Kimmel, and Corden explain GameStop, a funny tale of the stock market and Retail Apocalypse

I haven't written a story about the Retail Apocalypse since Black Friday/Buy Nothing Day and the stock market since September, so I was due. Well, do I have a story about both with a comedic twist, GameStop, which was the subject of four monologues last night, beginning with The Daily Show with Trevor Noah's Reddit’s GameStop Stock Boost & MLB’s Hall of Fame Drought.

Redditors boost the stock price of GameStop to insane numbers, the pandemic possibly creates a baby bust, and the Baseball Hall of Fame inducts no new players this year.

Good use of "The Big Short" to explain the situation. Other comedians will reference that scene later.

Before I move on the rest of the monologues last night, I'm thanking Trevor and his writers for including a perfect callback to yesterday's CNBC asks 'Is The U.S. Running Out Of People?' I like good transitions and I couldn't have imagined a better one between yesterday's post about population and today's about stocks.

The Late Show with Stephen Colbert had a less on-topic preview image but a better monologue in How Reddit Traders Used GameStop To Totally Spank The Wall Street Big Boys.

Stephen has the perfect explainer video for anyone trying to figure out what the heck is happening on Wall Street, as giant hedge funds get brutally punished by swarms of Reddit users harnessing their collective power to boost GameStop's stock price.

The opening of this monologue harks back to the failed self-coup and the kind of people who supported it. Consider that a preview of coming attractions on this blog as I make fun of Marjorie Taylor Greene, Lauren Boebert, and other members of the "QAnon Caucus" in the coming months.

Stephen mentioned the Margot Robbie scene from "The Big Short," but created his own version. I like the visual explanation in it better. Beanie Babies, which we'll see again as well, make for a good concrete example. Robbie was too distracting in the original and seeing Trevor's head on her was even more distracting.

Follow over the jump for two more monologues that featured GameStop and its stock.

CNN Business asks 'How can the stock market be booming while millions are out of work?'

I wrote about the disconnect between Wall Street and Main Street two months ago in The Economist explains why the stock market is rallying during the pandemic. Since I posted that entry, CNN Business examined that paradox in two videos that I'm featuring today. The more recent asks the question The Economist and I implied in July, How can the stock market be booming while millions are out of work?

CNN’s Jon Sarlin explains why just looking at the stock market at a time of mass unemployment isn’t good enough.

Those answer fit with those The Economist came up with two months ago. "Whose economy are they talking about," indeed.

CNN Business uploaded an interview with Jamie Dimon, who noted that "the stock market doesn’t reflect Americans’ pain" last month that examined that question from another angle.

JPMorgan Chase CEO Jamie Dimon tells CNN Business’ Christine Romans how he expects the US economic recovery to look as well as his plans for the New York Jobs CEO Council, which seeks to create more job opportunities for minority workers.

The good news is that Dimon is saying the right things, as he appears to understand the problems and has solutions for them. The bad news is that he and other investors may be counting on another round of relief for the COVID-19 pandemic, but it hasn't happened yet. It's possible that the rush to fill Ruth Bader Ginsburg's Supreme Court seat might just suck up all the energy that could have gone to that until the election. Mitch McConnell's priorities in action. Sigh.

The Economist explains why the stock market is rallying during the pandemic

I haven't written about the stock market as such since I reported U.S. is officially in recession when I recycled what I wrote in February.

Near the end of February, I wrote "This stock market crash is the one reason I am not revising the recession call I made in CNBC explains how the yield curve predicted every recession for the past 50 years. Without the cornovirus outbreak, I might have to. With it, I still think it's likely."

Since then, the stock indexes have risen, recovering much of what they lost in the crash, even as governors are bungling responses to the pandemic, retail chains are declaring bankruptcy, malls are failing, sports have been delayed and at risk of being cancelled, and the country faces an eviction crisis. The Economist explains why that's happening in Stockmarket v economy: the impact of covid-19.

American stockmarkets have enjoyed a record-breaking streak, even though the country’s economy faces the deepest recession in living memory. Why is stockmarket performance so seemingly cut off from current events, and what does this tell us about how the economy works?

According to The Economist, during the 1950s and 1960s, the U.S. economy and the stock market were much more closely tied together. Now, Main Street and Wall Street can and do move in opposite directions. That's a lesson I learned in the 1970s, when I watched a news report about a company laying off hundreds of employees and its stock price went up. I realized then that what was good for Wall Street was not always good for Main Street. What is happening to stocks during the COVID-19 pandemic shows that is even more true now.

Company Man describes the decline of GNC, a tale of the Retail Apocalypse and pandemic

Happy Monday the 13th, Garfield the Cat's least favorite day! For today's unlucky day, I'm following through on what I wrote to close Brooks Brothers files for bankruptcy while Men's Wearhouse and Jos. A Bank considering it, tales of the Retail Apocalypse and pandemic.

Company Man...uploaded a video yesterday about GNC, which announced it would close 900 stores last year. I plan on using that for another entry, making it the second update to Chuck E. Cheese, GNC, and Tuesday Morning all file for bankruptcy, tales of the Retail Apocalypse during the pandemic featuring a Company Man video.

As promised, here is Company Man's The Decline of GNC...What Happened?

GNC has filed for bankruptcy. This video explains the reasons behind it while taking at their unique history.

This is the first time Company Man has identified stock buybacks as a contributing factor in a company declaring bankruptcy. Usually it's private equity leveraging a company and making it vulnerable to bankruptcy during downturns, which happened to KB Toys, Sears and KMart, Toys R Us, Art Van, J. Crew, and Chuck E. Cheese's, although I failed to mention it until now. However, I might see stock buybacks as a cause of cash flow problems more often as the pandemic-caused recession continues.

That's it for the Retail Apocalypse for today. Stay tuned for my annual Bastille Day entry.