Tag 24/7 Wall St.com

Don’t Let The Door Hit Your Ass On The Way Out

Around this time last year, the business website 24/7 Wall Street.com issued their annual prognostication about brands that would go the way of the dodo over the forthcoming year, as I mentioned here. Of the ten brands listed last year, all of them are still around today, even poor beleaguered Blockbuster Video, although that company was sold at auction for pennies on the dollar a few months ago. The remaining Blockbuster stores will indeed go away soon, and T-Mobile is being Borg’d by AT&T and will disappear sometime next year, but all in all the predictions didn’t turn out quite as well (or as badly, depending on your point of view) as one might have thought.

Here’s this year’s list, which includes Sony Pictures and Sony Ericksson, Sears, and the one one slam-dunk on the list, Saab (they announced last week that they could no longer meet payroll, which means they’re pretty much kaput). Some other obvious ones like Nokia somehow didn’t make the list.

Well, Paul the Octopus is dead now, so nothing makes sense anymore and who knows what the future will bring.

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The Withering

Even before the current Great Recession, many American cities that had been home to the industrial expansion that built this country in the late 1800s and early 1900s were already in decline. Not even the boom years of the 1990s could bring about the revival of fortunes for many “Rust Belt” cities, and with the deep and long-lasting downturn we face now, some American cities seem all but doomed to practical extinction. This 24/7 Wall Street post looks at “America’s Ten Dead Cities”, but it wouldn’t be too hard to extend the list out by another half-dozen. Two of the cities on the list — Galveston and New Orleans — make the list less for sagging industrial fortune and more for the repeated devastation of those two cities by natural disasters. The recent media “anniversary celebrations” of Hurricane Katrina glossed over the continuing struggle to rebuild New Orleans, while Galveston was practically wiped off the map in 2008, which was not the first time for that city either.

In this past Sunday’s Boston Globe, this article by Drake Bennett looks at a growing interest among urban planners and hard-pressed city governments in deliberately shrinking these dying cities. There are several approaches: some cities are taking advantage of the opportunity to simply reintroduce green space into densely-developed areas. In Detroit, there is a very controversial effort afoot to move residents still living in less-populated neighborhoods into other areas of the city so that the abandoned districts can be demolished. And, such being the times, some places are looking at selling off blocks of property to private developers just to get rid of the burden of maintenance. The article cites similar efforts that were undertaken in cities of the former East Germany, which saw similar drastic declines after reunification.

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Brand Name Deadpool

This post at the financial news website 24/7 Wall St. tries to emulate Paul The Octopus by predicting which companies and/or their well-known brand names will face the Vuvuzelas of Death in the next year. Among the likely octopus chow:

  • Radio Shack
  • Reader’s Digest
  • T-Mobile
  • Blockbuster Video
  • and, big surprise, BP

Some of their picks are simply going out of business, like Reader’s Digest and Blockbuster, while others are acquisition targets likely to be swallowed by some bigger corporate cephalopod (like T-Mobile), and some are just getting a makeover (BP, Kia Motors). Back in December, they correctly predicted doom for Newsweek, and before that they called it right on Saturn, but they have been premature on several others, so you might not want to bet your World Cup winnings on these picks, but it will be interesting to follow up on this six months from now to see how they’re doing.

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