Nothing exemplifies the ghetto status of the U.S. economy more than the
success of Wal-Mart in the face of the ongoing destruction of what was
once a vibrant and strong middle class. In case you missed it, Marion
Nestle, Professor in the Department of Nutrition, Food Studies, and
Public Health at NYU, came out with some interesting tidbits regarding
the food stamp program.
One of them is extraordinarily disturbing. She shows that Wal-Mart’s
gets as much as 25% to 40% of revenue at some stores from food stamp
dollars. This says it all folks. Food stamps are or course the perfect
business for Wal-Mart and JP Morgan, which as I pointed out previously
makes a lot of money running the program and keeping the populace in
Meanwhile, guess what another of the best performing stocks this year
is? Corrections Corp of America, ticker CXW, up 41% YTD! Guess what
they do? Yep, you guessed it. They lock up the serfs that get out of
Corrections Corporation of America provides detention and corrections
services to governmental agencies. The Company owns correctional and
detention facilities in the United States and the United Kingdom.
Services include design, construction, ownership, renovation, and
management of new or existing jails and prisons, as well as long
distance inmate transportation services.
There you have it folks. What sectors are leading the American economy
in the “recovery”: Food stamps and Prisons. They are actually perfectly
complimentary. If the food stamps don’t work the prisons will.