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Recently, my wife heard a kitchen installer bemoan his economic fate on a local talk radio show. A job that netted him $10,000 a year ago, now goes for $4,000. This shows that the economy is not discounting goods and services. It's correcting prices.

The installer will never get $10,000 for that job ever again. How could he since he's willing to accept less than half the original price? The same thing holds true for the automakers. Every consumer with good or decent credit will now insist on zero-percent financing. How will the automakers -- especially the embattled Big 3 -- be able to afford these incentives? Is it any wonder that one in 30 new car dealerships are expected to fail this year with another 1,000 expected to shut their doors in 2009.

Retailers are offering huge bargains early in the holiday season to entice cash-strapped consumers. The problem, though, goes beyond this expected dismal season. Consumers are getting used to paying less and getting more and will not be satisfied if they do not get what they want.

As Detroit seeks a $25 billion bailout, the automakers are pinching pennies so hard that their fingers may start to bleed.

General Motors Corp. (NYSE: GM), which earlier this month axed 1,900 jobs, recently scaled back its presence at the Los Angeles Auto show and canceled its annual star-studded party at Detroit's North American International Auto Show, according to USA Today.

The largest automaker -- at least I think it still is, for now -- is keeping a tight lid on the distribution of office supplies. It's always a sign of a troubled company when the nice gel pens in the supply closet are replaced with cheap Bics that have a habit of exploding in your shirt pocket.

Of course, bonuses and holiday parties are things of the past for employees of GM, Ford Motor Co. (NYSE: F) and Chrysler LLC. Though these types of measures save money, they are like putting a kid's BandAid with a picture of SpongeBob on a patient with a gunshot wound. The reasons for these moves are as much political as financial.

Citigroup Inc. (NYSE: C) Chief Executive Vikram Pandit talks a good game about boosting the fortunes of the embattled Wall Street bank. The problem is that it's just that ... talk.

Pandit on Friday announced he had bought $7 million worth of stock in the New York-based bank. Today, he is expected to show his appreciation to those whose hard work made his undeserved bonus possible by firing 53,000 Citigroup employees.

Notice, I used the "f" word and not "layoffs." A "layoff" leaves open the possibility that these workers may get called back. Given the state of the economy, odds are pretty poor that many of these workers will find employment in the financial services industry anytime soon. Many of these "downsized" sell-siders would like to work for buy-side firms such as mutual funds because they are not as subject to the whims of the stock market. Trouble is, they are not doing much hiring these days either. Many former Citigroup workers will have to find work in other industries.

Maybe the government should start subsidizing the anti-depressant industry. That's the only way investors are going to be able to cope with the drumbeat of depressing economic news such as consumer confidence hitting near a 28-year low.

According to Bloomberg News, The Reuters/University of Michigan preliminary index of consumer sentiment unexpectedly rose to 57.9, from 57.6 in October. In 2007, the index averaged 85.6. I was able to tell things were bad this summer by the huge number of garage sales that I saw in my area. A few people placed their living room furniture for sale on their front lawns. It was among the saddest things I have ever seen.

Consumers have good reason to feel uneasy. Companies such as Sun Microsystems Inc. (NASDAQ: JAVA) are laying off thousands of workers. Treasury Secretary Henry Paulson abruptly changed his mind yesterday about how to prop-up the ailing banking sector and still wants to keep details of the deals that have been cut secret. My colleague Peter Cohan persuasively argued that President-elect Barack Obama should scrap the Paulson plan when he takes office in January.

It is beyond outrageous that the Bush administration has refused to disclose information about the collateral behind $2 trillion in bailouts.

Typical is the response from Federal Reserve Governor Kevin Warsh to Bloomberg News -- my former employer, which has filed suit to force the government to divulge the information -- regarding the news organization's request for information on the $29 billion loan between JPMorgan Chase & Co. (NYSE: JPM) and Bear Stearns Cos. to prevent the investment bank's collapse.

"The information at issue contains confidential commercial business information regarding securities pledged as collateral in connection with JPMCs acquisition of Bear Stearns," he wrote to Bloomberg.

So, the government's attitude is that taxpayers should not worry their pretty little heads about such questions like whether the deals being struck on our behalf are good ones. That's like putting a fox in a hen house or a mountain lion near a field of grazing sheep. Any animal metaphor you choose shows this is a bad deal.

Wall Street bankers can't seem to accept the fact that this is no longer the 1980s. Members of Congress are the "masters of the universe." What they say goes. For instance, I argued yesterday that American International Group Inc. (NYSE: AIG) should fire its CEO after another report of a company junket surfaced. The fact that the company thought it was justified is immaterial. Some very powerful members of Congress wanted the insurance company to keep its meetings at the Holiday Inn and there will be hell to pay for not doing so.

The same thing is at work with disclosure. Some powerful members of Congress want the process to be more transparent. Once Barack Obama takes office in January and a new Congress takes office, more details will emerge about the bailouts. Chances are members of Congress will not like what they see and heads will roll.

If you lined up 1,000 economists, politicians and activists and asked them whether Wal-Mart Stores Inc.'s (NYSE: WMT) success during the current economic downturn was good for the country, you would get 1,000 different answers. The issue surrounding the world's largest retailer are that murky.

Wal-Mart's business model is about as basic as it gets -- -buy low and sell high (but still lower than many of its competitors). Founder Sam Walton was famous for demanding the "Wal-Mart discount" from suppliers eager to do business with the retailing behmoth. Their profit margins were not his problem. After flirting briefly and disastrously with attracting wealthier consumers, Chief Executive H. Lee Scott decided to get back to what the company knows best -- selling stuff cheaper than anyone else. That strategy has paid off.

The company is the only member of the Dow Jones industrial average whose shares have risen this year, according to Bloomberg News. The results it reported today would be the envy of most companies struggling in the faltering economy. Net income rose 9.8% to $3.14 billion, or 80 cents per share. Revenue soared 7.5% to $97.6 billion. The results handily beat Wall Street expectations.

Best Buy Co. (NYSE: BBY) today gave a profit warning that was simply breathtaking.

"Since mid-September, rapid, seismic changes in consumer behavior have created the most difficult climate we've ever seen. Best Buy simply can't adjust fast enough to maintain our earnings momentum for this year," said CEO Brad Anderson, vice chairman and chief executive officer of Best Buy, in a press release.

Same store sales fell a whopping 7.6% in October as consumers stayed away from the big box retailer in droves. Best Buy expects these sales to plunge between five and 15% in the four months remaining in fiscal 2009. Revenue is expected to be between $43.7 billion and $44.5 billion. Annual earnings are seen at $2.30 to $2.90. All of these figures are significantly below expectations.

Chief Operating Officer Brian Dunn said "In 42 years of retailing, we've never seen such difficult times for the consumer. People are making dramatic changes in how much they spend, and we're not immune from those forces."

Given Circuit City Stores Inc.'s (NYSE: CC) recent bankruptcy, it is hardly a shock that Best Buy is having problems as well. People struggling to pay their credit cards and mortgages are not going to be shopping for new plasma screen TVs. Some many not do any holiday shopping at all, which has got some retailers -- even those holding their own -- watching their bottom lines. Even Wal-Mart Stores Inc. (NYSE: WMT) is worried about the consumer.

Whenever someone asks me if a stock can go lower, I reply "of course." As investors have learned the hard way over the past few months, a company's shares can go all the way to zero. Just ask holders of Circuit City Stores Inc. (NYSE: CC) (bankruptcy), General Motors Corp. (NYSE: GM) (near-insolvency) and Sirius XM Radio Inc. (NASDAQ: SIRI) (crushing debt load) whose shares are heading off a cliff.

The number of companies trading at or near their 52-week lows is staggering. Investors are faced with some of the biggest bargains they have seen in decades or the potential to get burned even further as corporate earnings deteriorate further. I am not sure whether to dip my toe further in the market or to invest in more Mason jars that I can fill with the remnants of nest egg and bury in my backyard.

One thing is for certain, stocks are getting cheap. The challenge for investors to figure out is where the market has thrown out the baby with the bathwater. Here are some examples:

• Google Inc. (NASDAQ: GOOG). The largest search engine company is trading at near a three-year low. Chief Executive Eric Schmidt has said the economy is far worse than he expected. The company traded at $307.93, near its 52-week low of $300.52. CNBC's Jim Goldman is baffled by the market's reaction to Google, as am I.
• Citigroup Inc (NYSE: C) has had more ups and downs than Cher. Shares of the big bank last traded at $10.80, near its low of $10.34. It is down more than 63% this year. Remember, sometimes stocks are cheap for a good reason -- like business is bad.
• Kellogg Co. (NYSE: K) reported better-than-expected third quarter earnings and gave bullish guidance. The market, though, could have cared less. Shares of the cereal maker are trading at about $48, near their 52-week low of $45.25. They are down more than 8% this year.
• General Electric Co. (NYSE: GE) has been in Wall Street's dog house so long it should consider a long-term lease. The conglomerate trades for about $17.73. Its 52-week low is $17.27.
• Saks Inc. (NYSE: SKS) already has gotten its lump of coal from investors worried about a horrid holiday season. Shares of the retailer are down more than 77% this year. The stock is trading at $4.66, near its 52-week low of $4.23.

Another day, another American International Group Inc. (NYSE: AIG) junket caught on video. Chief Executive Edward Liddy has promised members of Congress that it would not happen again. But since Liddy's credibility has been destroyed on Capitol Hill, AIG has no choice but to replace him.

AIG is going to get an avalanche of bad publicity over the $343,000 meeting it held at a posh resort near Phoenix. After getting burned by revelations over past junkets, AIG decided to cover its tracks by removing all mention of AIG from the Pointe Hilton Squaw Peak Resort, according to ABC News.

In a memo issued in response to the story, Liddy argued the meeting was justified under the policies AIG adopted after the complaints about its last fancy meeting was exposed. He also pointed out that the costs of the Arizona meeting for financial planners was minimal. "It is essential for AIG to conduct seminars of this kind to keep independent financial planners abreast of investment products and services including those offered by AIG," he said. "The financial planners are responsible for generating almost $200 million in revenue this year for AIG as of September 30th."

This certainly does not sound like the behavior of a company that got a second bailout deal just Monday to the tune of $150 billion because the original $85 billion was too low. What about a company that had to freeze $600 million in payments to former executives? You would think that a company in such dire circumstances would be holding its gatherings at the local Holiday Inn instead of the Pointe Hilton Squaw Peak.

The resort, judging from its Web site, is gorgeous. It brags about "nine acres of water fun, including a half-mile lazy river for tubing and a 130-foot slide known as Slippery Rock Slide. A beautiful lagoon pool with a 10-foot waterfall offers a relaxing ambiance while a sports pool entertains the more active."

Though this sure sounds like fun, I don't doubt that members of Congress will be mad. In fact, I bet that Rep. Henry Waxman (D-Calif) is probably preparing a letter to AIG's senior management as we speak. The management of companies need to learn that in politics, perception is reality. Companies such as AIG better get used to having their moves second-guessed and third-guessed.

Given the company's new realities, perhaps AIG might want to look into webinars.

This morning, investors were stunned to learn that Deutsche Bank analysts put out a note arguing that shares of General Motors Corp. (NYSE: GM) may be worthless in a year. Though the shares of the automaker are tumbling, this call shows once again that most analysts are a day late and a dollar short. Unfortunately, that's pretty typical.

Seriously, the troubles of GM and the rest of auto industry are well-known to anyone with a pulse. Auto sales are horrid. Democrats are pushing for a government bailout, which GM does not deserve. Retirees are getting squeezed. Yet to many analysts, this is a stock worth holding. According to Thomson/First Call, five rate GM's stock a Hold and one a Buy. There are four Underperforms and two Sells. That's shocking. If these analysts had any guts, they would all rate GM a Sell before it runs out of money.

The case at Ford Motor Co. (NYSE: F) is similar. Only two analysts rate the struggling automaker a Sell. Seven rate it a Buy and one an Underperform. Maybe these geniuses don't read a newspaper or a website. Perhaps they are betting on a massive government bailout to help Detroit. Either way, they show that investors certainly aren't being helped by Wall Street's wisemen.

Funny thing happened during my family's recent visit to the mall yesterday: the sales help noticed that we were alive.

They said "hello," offered us a coupon and --- get this -- thanked us for stopping by. My wife and I were shocked to get this level of service from our local mall where like many shopping emporiums customer service was an after-thought. Truth be told, I wonder how many sales people working at malls can even spell "customer service."

I guess you can call it the upside of declining retail sales. Companies are scrambling for every customer they can get because holiday sales this year are expected to be godawful. Michael Nemira, chief economist of the International Council of Shopping Centers, recently lowered his forecast for holiday sales growth for November and December period to 1 percent growth from 1.7%, according to the Los Angeles Times.

Retailers ranging from Gap Inc. (NYSE: GPS) to Neiman Marcus have posted terrible sales. Even Wal-Mart Stores Inc. (NYSE: WMT), which has posted better-than-expected results, remains nervous about the consumer. Circuit City Stores Inc.'s (NYSE: CC) filing for bankruptcy protection today only heightened these fears.

That's why retailers need to pay even closer attention to the customer than ever before. Given the precarious state of many household budgets, shoppers will have less tolerance than ever for rude or incompetent retail staff. They are putting up with enough troubles in their own lives. Retailers who do not understand this reality will have an even less joyous holiday season.

People are not giving up on organic food even though they have abandoned Whole Food Market Inc. (NYSE: WFMI). Consider the case of Hain Celestial Group Inc. (NASDAQ: HAIN).

The maker of Celestial Seasonings tea, Soy Dreams soy milk and Earth's Best line of food for children yesterday reported good earning considering the state of the economy. The Melville, New York-based company earned
earned $7 million, or 17 cents per share. Excluding one-time items, profit was 28 cents. Revenue surged a better-than-expected 22 percent.

Hain is going to be a stock to watch in an Obama administration.

Democrats are eager to push for sustainable agriculture practices and will vigorously promote organic products. Healthy foods have made their way into the mainstream. I buy organic milk because it's healthier for my two-year-old son. Same thing for fruit.

Mind you, I am not a zealot. I will not buy everything with the organic label slapped on it. Some of the stuff is ungodly expensive. I swear that you can spend $2 for an apple at Whole Foods. That company's prices and its aggressive expansion plans are the source of its troubles.

Hain Celestial has many reasonably priced products that fit within my family's budget. That's why the company performed well and will continue to do so.

From the 'what goes around comes around' department: publishers in Germany are reporting that interest in the ideas of Karl Marx is surging.

Small academic publisher the Karl-Dietz Verlag, has sold 1,500 copies of Marx's Das Kapital, including 200 in September alone. Other book stores have seen sales of the classic and deadly dull tome skyrocket by 300%. I realize that these figures are not indicative of a best-seller in the order of the Da Vinci Code, but they are interesting nonetheless.

The current economic meltdown has up-ended people's notions of capitalism. Conservatives have derided the $700 billion rescue of Wall Street as socialism. In many ways, they are right. The government is intervening in the market and choosing winners and losers, something that was never supposed to happen under the free market.

Though I have not seen any figures, I bet that interest in Marx is probably increasing in the United States as well. This may shock many investor,s but many people have grown increasingly anxious every time they view their 401 (k). The American dream has turned into a nightmare for many people struggling to pay their bills and facing foreclosure.

For some people, Marx seems to offer people the answers they are seeking. His ideas have been discredited by decades of often-brutal history of countries that lived under Communism. It's no accident that the United States won the Cold War.

Investors may not support Barack Obama, but they do expect him to be the next president of the United States. The smart ones do anyway.

If the polls are to be believed, Obama should easily defeat John McCain. Even the ultra-conservative talking heads on CNBC seem to have accepted this reality. Carl Quintinilla recently asked Pennyslvania Senator Bob Casey whether Obama will be "pulled to the left" if the Democrats win in a landslide. Why not ask Casey, who is pretty conservative as Democrats go, about Obama's five-year plan? I guess it's no surprise that the business network has Steve Forbes as a guest host on "Squawk Box." The Arizona senator needs all of the help he can get.

The market already -- wrongly in my view -- views Obama as a tax-and-spend liberal ready to suck away their capital gains and wrap America in bubble wrap to protect it from the ravages of world trade. The truth is more complex than these stereotypes. Obama plans to cut taxes for most Americans and favors fair trade policies. Markets, however, anticipate the future and people are scared. That explains why the Dow Jones industrial average is down more than 29%.

John McCain went on CNBC this morning to argue -- once again -- that the key to reviving the economies lies with keeping taxes under control, especially the capital gains tax. The Arizona Republican yet again accused Democrat Barack Obama of being a tax-and-spend liberal, the type of boogeyman that would send shivers down the spine of most CNBC viewers.

And you know what? These tactics are failing miserably. Polls indicate that baring any huge cataclysmic event, Barack Obama will be the next president of the United States. According to Bloomberg News, McCain "goes into the campaign's final weekend a bigger underdog than any victorious candidate in a modern election."