Happy New Year

Happy New Year

It's 2009

Out with the old and in with the new as they say. As we say goodbye to 2008, I look back to see what made it the worst year in recent memory and also why it’s been the most interesting year.

President-Elect Barack Obama
Senator Barack Obama made history by being the first black candidate to win a major party nomination. He went on to become the nation's first black President. He also set records in fundraising during his presidential campaign. President-Elect Obama will be sworn into office on January 20, 2009.

Sen. Hillary Clinton
Sen. Clinton's quest to become the nation's first female President came to an end when she failed to win enough votes to secure her party's nomination. She then shifted her support for Sen. Obama. After Obama's win over John McCain, she was rewarded for her efforts; she is slated to become the next U.S. Secretary of State.

Caroline Kennedy
Caroline Kennedy, the only surviving child of President John F. Kennedy and Jacqueline Onassis expressed her interest in the senate seat that will be left vacant when Sen. Hilary Clinton is confirmed as Secretary Of State. First the media dogged Ms. Kennedy accusing her of using her family's name to bully New York's Governor to appoint her. Second, they have questioned her credentials and as of late her articulation is under attack.

One only has to look beyond Caroline Kennedy's name to see why she would make such a great senator. One, she really cares about people. She has worked for years to raise money for New York City's public schools. She is also an accomplished lawyer. Caroline Kennedy sits on the boards of several charitable organizations. She also credited with lobbying and helping to successfully campaign for Barack Obama.

Financial Meltdown
With the new year, say goodbye to some companies that were once staples in the financial world. Bear Stearns closes its doors. Bear Stearns was once the one of the world's largest investment bank and brokerage firms collapsed because of sub-prime mortgages.

Washington Mutual, the nation's largest savings and loan and Wachovia both two of more than a dozen of banks that failed in 2008. WaMu was bought by JP Morgan Chase. Wachovia was purchased by Wells Fargo, and will over the next three years assume the Wells Fargo brand.

The big dips in the stock markets cause many Americans investing their pensions to lose a substantial amount of money. Although many experts predict that the market will correct itself and that people will get back most of the money they lost, at the moment that path looks far away.

2008 saw the largest increase in gas prices. At one point each week brought new record in gas prices. The rise in prices started with the damage Hurricane Katrina made when it hit the gulf coast. After the disaster oil speculators drove the prices even higher, all to make a profit for themselves.

Increased gas prices ensured prices of almost all other consumer goods would also rise, especially food. 2008 saw the largest and fastest increase in food prices in history. In an economy where the bottom has fallen out, people where making hard choices on weather to buy food, medicine or gas to get to work. It's probably the top thing people will not miss about 2008.

Home foreclosures skyrocketed in 2008. As most sub-prime loans interest rates adjusted, most homeowners could no longer make their mortgage payments leading to beginning of the current financial crisis.

Caylee Anthony
Caylee Anthony was missing for more than a month before her mother Casey Anthony reported her missing in July of 2008 at the prompting of her parents. Police investigating the case arrested Casey Anthony on suspicion of murder, neglect and giving false statements. Casey Anthony maintained her innocence and said that the child was alive and out there. Eventually Caylee Anthony's body was found near her Florida home.

Store Closings
The economy's slide south proved to be too much for some major retailers. Circuit City filed for bankruptcy and is closing over 100 of its stores nationwide. KB Toys filed bankruptcy for a second time and closed its doors at many of its mall locations. The country's financial woes are also pushing a lot of other stores out of business like Mervyns Department Stores, The Sharper Image, Linens 'n Things, Value City, Bill Heard Automotive, The Bombay Company, Steak and Ale, Shoe Pavilion, and Levitz Furniture.

Michael Vick
What does a man do when he has fame and fortune? He runs a dog fighting ring of course. Michael Vick shocked many of his fans when it was discovered he funded an illegal dog fighting ring on his property. His arrest led to him being let go from the Atlanta Falcons and fired from endorsements. He is currently serving time in federal prison.

Writer's Strike
The writer's started in November of 2007 and ended in February of 2008. The strike pretty much torpedoed the rest of the television season. Some shows did not return to air, to finish out the season, while others were canceled without any chance of redemption. The strike also had a lasting financial effect on Hollywood. Because production on shows stopped, production companies were forced to lay off thousands of crew members. Shows that were slated as mid-season replacements never aired. Awards shows were scaled back or canceled. After the strike was over it was determined that most people found alternate forms of entertainment. Some people apparently did not come back to the TV, its been reported that viewership dropped nearly 7%.

Gov. Rod Blagojvich
In December of 2008 Gov. Blagojevich was arrested by the FBI with among other things solicitation of bribery. The government claims that they have the Illinois Governor on tape attempting to sell Barack Obama’s senate seat to the highest bidder. So far none of the tapes have been released. From the very beginning members of both parties have called to have the Governor removed from office. It sounds easier than it actually is. The Governor has refused to resign, so state leaders are looking into impeachment. The state’s Attorney General has said that she would try to have him declared unfit to hold office. It’s a move that may not be constitutionally sound. Democrats have warned the Governor not to try to appoint anyone to President-Elect Obama vacant seat. But as it turns out, he defied them and appointed Roland Burris, former Illinois Comptroller and State Attorney General.

Could This Be The Beginning Of The End For Circuit City?

A few weeks ago, Circuit City announced that it was closing over 100 of its store including all locations in Georgia. The company cited the ailing economy as the cause. Well I wish I could be one of those people that after hearing the news, their jaw drops and have such a surprised look on their face. Well I can honestly say that I’m not surprised, in fact I predicted the company’s downfall, but not because of current circumstances.

I’ve told this story it seems like hundreds of times, but I don’t mind doing it again. I only wish I had my blog around this time a year ago. Perhaps things would be different. Anyway… last Christmas I decided to treat myself to a new HD TV. Because I don’t believe in just walking in a store and buying the prettiest model I see, i did tons of research on brands, models and prices. After crunching all the info I decided that I would not buy just one, but two TV’s. When I bought my last two TV’s I paid nearly $2000. So when I decided to buy these new TV I was expecting to be paying around the same price. To my surprise the price had drop considerably, partly due to the demand but also because of the holiday discounting the stores do to move inventory. I quickly realized that for the price I was prepared to pay, I could buy two TV’s. My original intention was to buy an HD LCD TV for my den. But now I could also buy a TV for my new bedroom. So that is that was the plan I went with.

After careful research I choose two TV’s. They were two different brands, sizes and located at different stores. The TV for my den I decided to buy a Polaroid 42’ LCD TV from Circuit City. The best deal I could find for the size I wanted was on Circuit City’s website. So I bought the TV online would pick it up at the closest store. The Closest store to have the TV in stock was a 25 minute drive away. So by the time I was able to get to the store, they had already closed for the night. So I go the next evening to pick the TV up. By the time I get to the store the next night it’s already more than 27 hours since I originally ordered the TV and received email confirmation. So I go to where you are suppose to go, to present the confirmation number, ID, and method of payment verification. They tell me to go over to the merchandise pick up area. So I’m waiting over there for nearly 10 minutes, so I knock on the service window and ask about my TV. The lady that said they were trying to find a guy that was big enough to bring it out. So after another 6-7 minutes a guy emerges with the TV and helps me load it into my car. So after ordering the TV 27 hours ago, and waiting nearly 20 minutes, I believed that I was owed a gift card for waiting because of the Circuit City’s 24 minute guarantee. According to the store’s guarantee the time you wait in line inside the store is excluded from the 24 minutes. I waited nearly 20 minutes for my item to be brought out from the stockroom, when it should have already been ready to bring out. So I explain this to the manager on duty and they say no. You have to give them time to get the item. I countered, “That’s not what the guarantee states, if that were the case you would never be violating your guarantee.” So instead of arguing with the manger on duty, which turns out was only a supervisor, I decided to call the Store Manager the next day.

The next day comes and I call the store and ask to speak to the store manager, I’m told he’s not available but they were the Assistant manager. I tell her my complaint, and she says no problem. She gives me her name and tells me it won’t be a problem. So I’m happy that it’s resolved. The Assistant manager tells me to ask next time I’m at the store to get my $24 gift card. So a couple of days later I’m in the area and stop by and try to get my gift card. I’m told that the Assistant Manager I spoke with is off that day, and I would have to speak with her because no one knows about the situation. So I’m thinking ok, I’ll come back another day. I was kind of bummed in the fact that this store is 25-30 minutes away from where I live. I do not really want to make a special trip for the gift card. So I call the next time to see if she is there, and I speak with her to let her know I’m on the way, they she pulls a 360 on me. She totally changes her tune and says that she can’t issue me a gift card because of the incident. So I ask to speak with her manager, and he tells me the same thing. I get all the way to a regional manger that apologizes but doesn’t issue me a gift card. So At this point I’m pretty ticked. If it were not for the fact that the TV was so big, and I had a hard time getting it out of my midsize car, I would have taken it back. I was so mad; I came close to renting a truck or van just to return it. But I decided to exact my anger in telling people my story and not recommending Circuit City for anything.

You see my revenge is very satisfying to me. I’m the person that people I know go to ask recommendations on what to buy and where. So when I recommend brands or stores, I just don’t include Circuit City in my advice. So when people ask what about Circuit City or why I didn’t mention them, I explain what happened to me. I am happy to say that in the last year I’ve bought or helped people buy several thousand dollars worth of electronics. I’ve often joked about becoming an electronics personal shopper for people that are not tech savvy. My only concern with the downfall of Circuit City is the status of my extended warranty on the TV a purchased.

Circuit City shot itself in the foot a few years back. It put more emphasis on it’s spin off CarMax, that it allowed store like Best Buy and Wal-Mart to come up and take control of the market. They had to play catch up, like creating their tech repair unit fogdog after the successful launch of Best Buy’s Geek Squad. Sales have taken a nose dive for years, and the economy over the last few years did not help their position. Big box retailers still have not learned the basics of retaining customer loyalty. In this economy companies can’t afford to lose repeat customers. $24 dollar gift card in the long run is a small price to pay to retain a repeat customer. There isn’t much in Circuit City that one can buy for just $24, so pretty much any purchase made with the gift card will require additional money. That gift card would translate to additional purchases in Circuit City and another opportunity to sell even more merchandise. It’s a cliché, but it’s very true, a bad customer experience cost a company more customers as opposed to a good experience. People like to tell as many people that will listen to a bad experience, this blog entry as an example. I call it therapy for a frustrated consumer.