Walmart executives warn February sales are 'total disaster'
Dire warning in leaked emails
- Duration 8:32
- Date Feb 19, 2013
Dire warning in leaked emails
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Well the true and perhaps future state of this economy may be visible in a series of leaked internal emails.
From the nation's largest and most successful retailer.
Top Wal-Mart executives sounding the alarm about the fact that nobody's -- anything.
Take a look at this one from Jerry Murphy this is Bloomberg -- broke the story he's vice president of finance for Wal-Mart.
In case you haven't seen its sales report these days February month to date sales are eight total disaster.
The worst start to -- month I have seen in my seven years with the company.
The result some economists believe may be due to the tax hikes just imposed in particular the rollback of the payroll tax.
Break that all tax -- Americans got when I thought about the rich were talking about regular folks.
So what does this mean for our economy.
-- called the president a -- financial group.
Judy -- he is a Fox News contributor and was political advisor to former New Jersey senator Frank Lautenberg.
-- Charles Payne is with the Fox Business Network so when you hear these dire.
Comments from Wal-Mart and their top exactly think only -- -- YE YE.
And economists are saying they're saying it could be -- payroll tax and that may be a bigger deal than quote any of us thought your thoughts on a -- Right I agree about a month ago we got some consumer confidence numbers -- for January -- -- -- substantially below what anyone thought.
And that was the main thing they could point to -- talking about a 160 million people who got a tax hike that we're not expecting a tax hike on top of that December.
There was a total money in this country a ton incomes were up huge because everyone wanted to be to tax and so there were dividend -- they were special bonuses.
-- savings went through the roof -- -- like the American public was so afraid they started to save money which is directly against our DNA.
How can -- -- they're pulling back a little bit I think wal mart's filling it.
Because Wal-Mart is particularly telling since it's you know it it it caters to middle class Americans and people -- lowering -- and they're not spending.
Actually read Charles -- for the payroll tax and and I really was a big proponent of extending the payroll tax for that reason they think forty dollars on average they said.
People's payroll people's.
Let's make him into people's pocket periodically thousand dollars a year yeah thousand dollar hit right at forty bucks per per.
Paycheck and I think that's that's a big controversy and that's obviously a big reason another big reason is people are getting ready for the sequester I understand Defense Department have to lay off.
Lot of their civilians with the understanding that they're gonna have to prepare for massive budget cuts.
For the sequestered us through those civilians are spending money.
That's a problem but I think just your overall about what's coming to the economy with the sequestered I think it's and then another thing at you know I I hate I -- it.
You know contradicted the narrative of all the major -- media outlets but are people paying attention to this.
Now from I don't think they are not the average person.
Who's going to Wal-Mart or just spending on innocent Walter margin -- Yeah you're not gonna wake up you know really don't get pushed back -- purchase -- big you know box of soda because of the nose is this a secret Jason.
I personally -- take a that the doom and gloom on this I actually think this isn't about big of a deal I think this -- more of a one time thing where people yes he saw the paychecks and not okay.
Let's just tighten up you know the -- here just for a month or so.
Consumers here in America are resilient you never bet against American consumers they're gonna find a way to get money get out there and spend whether through borrowing or something else.
They will spend I think this is a short term fix and I think Wal-Mart long term it's going to be just fine it that here's one of the.
-- -- even out obtained by Bloomberg news.
Well we just have one of those weeks here Wal-Mart US where are all the customers and where is their money.
I don't disagree -- mad that people that was -- -- and certainly a shock to me you know a lot of people got that paycheck they were expecting it it I'm not the rich like did exactly what the heck did I thought it was my cousin that I was so jealous I don't care keeping mark -- I mean it certainly is not sequestration -- -- people think that was the asteroid that -- by if you if you -- -- -- -- I will also doesn't really get like your -- I -- that I can't feel any guy yeah got to put on gloves the kind of right.
-- -- right here's the thing to -- gas prices also gone through the -- -- I -- so that's a good I don't disagree I don't disagree with -- that may -- it's something we work their way through but there's no doubt about it there was this jockeying.
Shocked back to this that we'll see what happens if people give back again to our DNA.
So that's how do you -- -- -- again look sequester affect you with your civilian whose contract to the DOD Elvis and you got laid -- few months ago.
Then obviously you know the sequester is -- getting tired just -- your job and I can go to Wal-Mart anymore its stock up on papers whoever -- how does how does this play into the debate we're having in the country are now about taxes President Obama wants to close these tax loopholes again.
-- the need -- knows that means exactly and it really wants to believe if that applies to somebody other than them well -- but but.
We just had this Howard -- statement this admission -- by Howard Dean.
You know his top Democrat left left left guy who comes out says everybody's gonna have to pay higher taxes and everybody gonna have to -- to -- Texas and so what is that.
What does that do to people who do -- -- shopping at Wal-Mart does it hurt confidence.
It actually will because a lot of that shop -- They are shopping -- of the art.
The saving pennies -- from dollar a dollar so you only lose at forty dollars and a paycheck as you alluded to that does make a big difference plus gas prices that was an interest -- -- And yes -- -- at that if that happens -- -- -- go twice a month vs four times and it is not gonna stop shopping.
But let me just give you one of them throw something out there what is this a fact that the economy's been doing very well right economy's been doing pretty darn good -- the stock market almost an all time high maybe people are actually moving up its spending money on higher end goods while its two.
They -- -- market that killed warming OK -- as the non fox there's a different kind of -- like.
It the economy's doing really well I got to the stock market is doing well but didn't we have negative growth in the fourth quarter of last year and that's something that people people look at their wealth in the opener 41 K statements -- -- the market's doing.
Us good people.
Everybody the pro McCain had a even -- warmer before.
-- really well but that's part of good how -- -- -- -- -- I think that's how they feel mentally and that's -- the consumer.
Retail stocks hitting all time -- -- Because people are.
App market isn't really yeah.
I normal people live.
And I think that -- Google let's talk about -- what backs who have been Bernanke's trying to create what they call the wealth effect you know you look at your 401K you've built well here so he's been money I don't think is really working -- -- I think one of the real things.
We're watching T -- -- I mean my wife and hit -- has always commercials come want.
Everything was zero to car zeroed down zero answers zero payments that pharmacist or zero down zero -- -- for like two years only really good.
World also every once you go by car you can go buy furniture.
You might you have mortgages that yeah.
I think -- got a warning about Bennett isn't going home plate and -- 1000.
Well you know what I think all -- -- will come America's really lucky that where the -- we did deliver on our reputation with that respect but you have to know at some point.
You do have to pay so.
If you think because I'm making my -- the stock market but what it -- supposedly -- but we go we -- we do worry people do you know anecdotally they that say oh -- for a -- -- -- up.
But there's been so many other things that that make us worried you know the housing market starting to rebound but it's still a tough market.
The job market is still a very tough market and then I get these gas prices as I report from California and housing is out there there's like five dollars a gallon now.
Why doesn't Paris February and on top of all this they get hit with this you know payroll tax rollback and an -- people are starting to wonder whether they're gonna have a job and how much longer whether they.
Whether they gonna get hit with another tax increase -- obamacare taxes and so on that was better than in the -- great I mean I think what Obama's talking about isn't disclosing something I could carry into some poll which if you're shopping and Wal-Mart -- won't affect you.
But you are talking about the fact that people look at who Candice who cannot be scared about what's going on here up -- down I mean this is a very scary times we live in this country.
That's those are the end -- selling author Howard Dean comment.
To build the society that President Obama envisions it costs so much money and I think we learned.
With that the whole rhetoric about taxing the rich and everyone looks at the paycheck and they got a tax -- in California.
Prop thirty will go after the rich cell stacks up for everyone on -- -- to make a thousand dollars a year -- -- trillion.
To create this society that we want ultimately we put these rich people up front -- straw men are strong women but everyone's gonna pay -- more frequently here.
That would with a payroll tax hike that was actually Republican proposal Obama wanted to extend a payroll tax holiday a Republican message.
And he certainly certainly dampen the Republicans had no listening to get off the table so.
You know to the extent you're saying Republicans you know don't wanna raise taxes than anybody beaches in congress easily go -- -- holiday perhaps -- is because he really got off why then I got an event -- Questions about that okay great debate thank you -- -- it.