It isn't the economy, its the customer, stupid!
Joel hits the nail right on the head when he states, 'So it was no surprise to me that Circuit City failed. The chain's CEO, in an e-mail, blamed the demise on "poor macroeconomic conditions" -- an assertion that was repeated by The Associated Press, which cited "the expanding financial crisis" for the liquidation. You know what? I don't buy the argument that the economy caused Circuit City's failure. Take one look at its competitors, and you know that the market for consumer electronics and computer equipment remains strong, even in this economy. You can walk into any Apple Store and see large crowds of people lining up to buy computers and iPods.'
Dead on right. If business firms are folding up, its because their customer patronage has dried up. And if patronage's down, they only have themselves to blame. Remember, as much as there are firms closing down, there are others that are doing just fine. And that's because the latter made customers their central priority.
Bailing out firms that are folding up, is akin to watering a plant with dead roots. Its wouldn't matter how much of water you're going to flush down. The plant's as good as dead.
Its important that business firms don't get complacent when consumer consumption is at its peak. In fact, what's witnessed at such times is the arrogance with which these firms treat customers. The deal then is, 'take it or leave it'! I am not the one to shed tears for such firms as I see them folding up. In fact its a shame to see these very firms traipsing around with begging bowl that's been filled to brim by the political establishment. A bowl that will empty soon. My bet then is, you'll still see no branches and leaves. Remember, no root!