Local News About Phoenix, Arizona

Implications:  The article shows what’s on the local mind as families in this average man’s town try to get from paycheck to paycheck.  Not surprisingly, the British grocer, Tesco, has called a 90 day moratorium to its aggressive market entry and store opening program in Arizona, California and Nevada.  Since the initial stores only opened within the current year, the meaning is clear.

Analysis: Nobody stops a program of this size mid-stream unless the results are way below projections.  A visit to one of the stores left me with a nothing special attitude.  The architecture reminds me of the old Circle K stores which still dot the Southwest and the prices are, shall I say it, astronomical for a firm trying to gain entry to a competitive market.  I think they missed the mark and apparently they do too.  Stand by for details of the repair program.  
At the same time, Meritage and Toll Brothers have approached the State of Arizona for a re-trade of the pricing and terms and infrastructure requirements on acreage taken down from the State in recent years.  The state has replied that it’s limited to interest rate adjustments and infrastructure delays when on–site construction is also delayed.  Stand by for details of this repair program also.  
Phoenix gained over 130,000 new residents in the period July, 2006 through July, 2007.  I wonder what the numbers for the similar 2007/2008 period will be and further what the real number of folks moving back from whence they came will be.  Since 1 out of 3 jobs in the metro area is real estate oriented and the huge illegal Mexican population is stressed from Homeland Security, the real number may be hidden, except that retail sales will reflect their absence as well as the general lack of consumer confidence in the economy.  
Gas is now almost $ 3.50 per gallon and the fiery summer season is about to begin with its big air conditioning bills.  In this heat, your car wears out about 50% earlier than in other more temperate climes.  Since the public educational system is among the most poorly funded in the nation, many households support private school attendance by the family’s kids.  Healthcare is as expensive here as anywhere else in the nation, especially since a large portion of the population has been dependent on the public institutions without repayment.  The down cycle continues as growing expenses pressure limited wage gains.