Crane's Corner: 9-16-21 California Screamin

09/17/21 • 3 min

I suppose every state has its problems. Michigan lives and dies by the auto industry, which is now at a crossroads. Production is being hampered by shortages of computer chips while prices are putting new vehicles out of the hands of many would-be buyers.

New York’s governor jumped before he could be pushed out of office and crime in New York and other big cities like Chicago remains out of control. Covid’s comeback is hitting the deep south hard.

Maybe it’s because we live here and are too close to it’s problems, but California seems to be the unhappiest state in the Union. It’s been a record fire season, which sadly has become an annual event. Criminals are being released early and reoffending, in some cases committing vicious assaults and murder, crimes worse than the felonies that put them behind bars in the first place.
It was a fair vote, but California now retains Governor Newsom, a politician who has done pretty much what he wants, regardless of public sentiment, while failing to adequately address the state's biggest problems. From Amador to Anaheim, drought and future water supplies are a concern and while California is among the states with the highest percentage of vaccinations, Co Vid is making a serious comeback, with even those inoculated subject to infection.
Inflation, though it seems to be moderating across the country, has hit California especially hard. The highest gas prices in the country are getting ridiculous, $5 dollars a gallon in the big cities, close to it in other parts of the state. Inflation is noticeable during every trip to a grocery store or restaurant. The employment situation is truly bizarre. The statewide unemployment rate is close to 8 percent, among the highest in the country, yet it seems every sector of our economy is looking for workers. Generous jobless benefits and co vid induced rent moratoriums effectively invite would-be workers to stay home, with an entitlement mentality setting in.
SMUD reports many customers, while enjoying free rent, are failing to pay their electric and gas bills. Intense summer heat and daily smog and smoke from seasonal fires are keeping many from enjoying California’s natural beauty and vast recreation opportunities. Living here has ceased to be fun, and the daily cost of living and fears about the future make things worse. The Golden State in many respects has been tarnished. The idea that California can bounce back any time soon ....File that one under Fools Gold.

New York’s governor jumped before he could be pushed out of office and crime in New York and other big cities like Chicago remains out of control. Covid’s comeback is hitting the deep south hard.

Previous Episode

Crane's Corner: 9-8-21 Amazon Goes Old School

Jeff Bezos can prove he’s a lot smarter than most of us with the mere opening of a bank statement. But the man who gave us Amazon and rewrote the book on retail sales, delivery and marketing in the 21st Century must really be bored. If he’s not riding a rocket ship to just this side of outer space, with plans for galactic expansion, he’s going back to the future, taking a walk on the wild side. Jeff Bezos and Amazon are investing in brick and mortar retail stores.
You remember those costly ruins of 20th century retailing before Bill Gates and Steve Jobs figured out a better way? The business as usual plan that put some of America’s retail reliables, Lord and Taylor, Montgomery Ward, Sears, J Crew--just to name a few. Stores that were on the ropes in 2019 but knocked out in the Pandemic of 2020. It’s been the Bataan Death March with an on going clearance sale. A sad trend that turned a day trip to the Mall into Night At The Museum.

Why Bezos? Why Amazon? Why now? Well, there is much to be said about getting anything you want, at a more than fair price, delivered in time for whatever and when ever it’s needed---especially if you live out on the country or are stuck in some kind of viral shutdown. But, ya gotta admit there is something about the look the feel the tradition of shopping. Of seeing goods on display, The tool you didn’t know you need till it turned up in the Kenmore section of Sears. Or the Sport Coat you covet and just have to try on. Or that perfume she wore? Can’t remember the name, but if i get a whiff at the counter I’ll know.

Thats whats missing from our digital shopping carts and computer screens. The experience. You can surf prices while brushing your teeth or feeding your goats like the Amazon TV spots point out, but sometimes money really isn’t the object. Come on it’s the experience, right. It was until life and Co Vid and hand held devices made us lazy.

Bezos clearly wants to bring that experience back..where possible. But he’ll be smart about it. The Amazon store will be a quarter the size of a typical 100 thousand square foot Macy’s, featuring name brands but plenty of Amazon’s Private label goods..and count on clothes. Amazon sells more clothing than Wal Mart or anyone else. And it might just be a way for Amazon to get the laundry done. The online giant’s business model is to buy from legions of Mom and Pop vendors..many of them the Wall Street Journal reports stealing the swag from bigger retailers and selling at a 100 percent profit to Amazon,

Retailers like CVS and Target are taking notice. They’re among the ubiquitous retailers socked with 45 billion dollars in losses, flying off the shelves and out the door in places like San Francisco, where brazen shoplifters know cops can’t be bothered, when boosting anything under 900 bucks is a mere misdemeanor. A trend so bad Walgreens, and other retailers are closing their crime scenes by the bay.

Jeff Bezos may be taking some risk here, but the richest man in the world didn’t get that way by being reckless. Pick me out a nice blazer,,,

Next Episode

Episode 9: Talking Sacramento Real Estate with Terry Knight.

Listen in as today's discussion is with long time Real Estate Agent, Terry Knight. We'll be talking about the market in general, some of the historical challenges real estate has faced and a look forward about what to expect in the near future. Will our children or our grandchildren ever be able to get to the point where they can own a home as we know it today? What could it possibly look like? Is there a home buying challenge in our near future be it interest rates, inflation or even a dip in the overall economy? We cover a lot of ground with an outlook that's probably a realistic view of where things are headed.