THE BIDEN ADMINISTRATION, THEY
HAVE UNTIL DECEMBER ’92 EVERY
MAJOR STRIKE.
JACKIE: LET’S BRING IN FORMER
TOYS "R QUOTE US CEO AND
ADVISOR FOUNDER AND CEO GERALD
STORCH, GREAT TO SEE YOU.
LET’S TALK ABOUT WHAT THE RAIL
STRIKE WOULD MEAN FOR SHOPPERS
AS WE HEAD INTO THE HOLIDAY
SEASON, SEEMS TO ME
SUPPLY-CHAIN ISSUES WOULD GET
WORSE, NOT BETTER.
>> IT WOULD BE BAD AND BETTER
NOT HAPPEN, SO FIRST OF ALL,
ISN’T DEBT THAT WILL RUIN
CHRISTMAS IN THE SINCE THE
CHRISTMAS PRESENTS WON’T
HAPPEN, IT IS TOO LATE FOR
RETAILERS ON TRAINS AND STORE
SHELVES IN TIMES FOR CHRISTMAS,
NOT GOING TO AFFECT YOUR
ABILITY TO AFFECT TOYS FOR
JOHNNY OR THE SWEATER YOU’RE
GOING TO GET.
A LOT OF PRODUCTS WILL BE
AFFECTED RAPIDLY INCLUDING FOOD
THAT COULD AFFECT YOUR
CHRISTMAS DINNER.
IT WON’T AFFECT YOUR PRESENT
BUT COULD AFFECT FOOD VERY
RAPIDLY, SO MUCH FEED FOR THE
ANIMALS BY RAIL AS WELL.
THE THINGS WE USE EVERY DAY,
YOUR AUTOMOBILE INDUSTRY, VERY
BAD FOR THE SUPPLY-CHAIN, VERY
BAD FOR INFLATION, JUST
REIGNITE THE FIRE IN THE
SUPPLY-CHAIN.
JACKIE: THE ADMINISTRATION PUT
TOGETHER A TENTATIVE DEAL WHERE
THEY APPOINTED A COMMITTEE TO
PUT TOGETHER A TENTATIVE DEAL,
THE THING THAT IS AT ISSUE FOR
THE RAIL WORKERS, FOR THE
UNIONS IS PAID SICK LEAVE.
IT APPEARS THE TENTATIVE DEAL
DID BOOST WAGES OVER THE NEXT 5
YEARS OR SO BUT DIDN’T ADDRESS
THE PAID SICK LEAVE ISSUE AND
WHAT UNIONS AND RAIL WORKERS
ARE WORRIED ABOUT IS A
REPUBLICAN HOUSE WILL NOT BE
FRIENDLY OR UNDERSTANDING OF
ITS NEEDS AND THAT’S WHY
THERE’S A NEED FOR A STRIKE OR
TO MAKE A BIGGER STATEMENT
ABOUT THIS RIGHT NOW, HOW DO
YOU THINK IT SHAPES OUT?
>> I DON’T KNOW.
IT’S CLEAR THEY HAVEN’T COME TO
TERMS, TO GET PAST THE
ELECTION, LOOKS LIKE THEY ARE
GOING TO GET PAST THE GEORGIA
RUNOFF BUT THAT’S THE END OF
THE LINE.
THEY HAVE TO COME TO AGREEMENT
ON THIS.
IF NOT THEY WILL STRIKE.
IT’S NOT ANYTHING ANYBODY
WANTS.
IT’S NOT GOING, I DON’T THINK
IT IS THE WORST CASE SCENARIO
BUT MIGHT GET TO THE EDGE OF
THE CLIFF BEFORE WE RISE UP AND
SAY THIS IS BAD.
JACKIE: WE WERE TALKING ABOUT
HIGHER FOOD PRICES IMPACTING
MEALS HITTING THE THANKSGIVING
TABLE, PRICES WON’T RISE
OVERNIGHT, IT’S FOR A BASKET OF
GOODS AND WE HAVEN’T SEEN THOSE
PRICES FALL.
WE ARE LOOKING AT THE CPI
NUMBER.
CERTAIN AREAS OF THE
SUPPLY-CHAIN HAVE SEEN A DROP
WHERE PEOPLE NEED IT MOST, FOOD
AND GAS, THEY ARE STILL
STRUGGLING.
>> I DON’T THINK INFLATION IS
COMING DOWN, THE LEVEL OF FED
WANTS, ANYTIME SOON.
THAT THE REALITY.
THERE’S STILL INCREDIBLE UPWARD
PRICE PRESSURE NOT THE LEAST OF
WHICH, DESPITE THE LAYOUTS WE
READ ABOUT THE EMPLOYMENT RATE
MEANS LOW, THE ONLY WAY TO GET
MORE PEOPLE IS TO PAY MORE AND
HAVE WAGE PRESSURE ON TOP OF
SUPPLY-CHAIN PRESSURE AND ALL
-- WHAT WE ARE SEEING, DON’T
THINK IT WILL GO AWAY ANYTIME
SOON AND AT THE END OF THEY
CONSUMERS SPEND ON NECESSITIES
LIKE FOOD.
THERE WAS A HEADLINE IN ONE
MAJOR PAPER THAT SAID AMERICANS
AREN’T LETTING INFLATION
INTERRUPTER THANKSGIVING, OF
COURSE THEY ARE NOT, THEY ARE
GOING TO BUY THE TURKEY AND
HAVE THANKSGIVING, THAT’S GOING
TO HAPPEN BUT THEY WILL SPEND
MORE MONEY ON THAT AND WON’T
HAVE IT FOR OTHER THINGS AND WE
WILL SEE THAT IN THE REST OF
THE ECONOMY LIKE A SNAKE
SWALLOWING A RABBIT WHEN IT
BULGED OUT AND DESTROYS APPAREL
SHOPPING, HOLIDAY SHOPPING,
ELECTRONIC SALES AND OTHER
DISCRETIONARY PURCHASES WHEN
THE CONSUMER HAS TO BUY THE
HOLIDAY TURKEY.
JACKIE: I’VE TALKED TO PEOPLE
WHO ARE NOT SCRUBBING ON FOOD
AND GAS TO GET WHERE THEY NEED
TO GO BUT THEY HELD BACK ON
THOSE DISCRETIONARY PURCHASES
AND THAT IS WHAT THEY ARE
STARTING TO THINK ABOUT AND
WAIT TO SEE WHAT THE TIPPING
POINT IS WHEN YOU START TO SEE
COMPANIES REPORTING LOWER
EARNINGS AND THAT KIND OF
THING.
WE SEE THESE LAYOFFS HAPPENING