Blimling and Associates Blog

We saw this sign at the end of an exit ramp in the Yakima Valley (Washington) last week. It struck us as a humorous commentary on the current scene...

News of milk moving from Wisconsin to New Mexico hit the wires in an unconventional manner on Wednesday. According to the Wisconsin State Journal:

The driver of a milk-filled tanker headed from Wisconsin to New Mexico was arrested for drunken driving on the Beltline during rush hour Tuesday afternoon, Madison police said.Harry C. Mapps, 55, of Dimmitt, Texas, was stopped near Fish Hatchery Road just before 5:15 p.m. after an officer observed him weaving, using "all three lanes," said police spokesman Joel DeSpain. Mapps had a partially consumed bottle of vodka, a six-pack of beer that was missing four cans and a four-pack of malt liquor in his cab, DeSpain said. Other rush-hour drivers stayed a distance back from the truck, he said. Motorists had previously reported a milk truck that was driving erratically between Sun Prairie and Madison, DeSpain said.

Cheese prices were high from May 2007 through the end of 2008.  As a function of this prolonged period of high prices - which was not confined to dairy ingredients, many food companies were forced to reformulate to control costs.  Pizzas and frozen convenience meals featured less cheese and ice cream containers and cereal boxes shrank. 

One such reformulation that got a significant amount of press was McDonald's Double Cheeseburger.  In December, McDonald's announced that the Double Cheeseburger, a very popular menu item, would be moving off the "Dollar Menu."  In its stead, a new product dubbed the "McDouble," which features two beef patties and a single slice of American cheese, claimed the slot on the $1 menu.

But now things are taking a different turn, with the burger wars heating up along the lines of "our burger has more cheese..."

Burger King is expanding its $1 double cheeseburger offer, ratcheting up pressure in what's increasingly looking like a burger war, though possibly irritating its franchisees along the way.

Miami-based Burger King Corp. said it will begin a nationwide promotion for its $1 double cheeseburger beginning Oct. 19. Last month, Burger King cut the price on its double cheeseburger, which normally costs at least $2, to $1 in 40 markets, including Chicago.

That promotion has featured aggressive television ads belittling the size of Oak Brook-based McDonald Corp.'s double cheeseburger, which has a smaller meat patty and usually costs $1.19. Meanwhile, CKE Restaurants Inc. over the past five weeks has launched two burgers aimed squarely at taking on McDonald's Big Mac.

Is this the beginning of the un-doing of those reformulations?

Burger King's Battle Cry: $1 Burger

Yesterday economic analysts were looking for clues in the latest jobless claims release. This morning they are poring over the durable goods report. All interesting stuff, to be sure. But we ran across a story -- credited to Forbes -- suggesting that simple observation of what businessmen are wearing might provide equally useful insight into the economic vibe:

Want to know if we're really on the road to recovery? Look for pink ties, says Robert Allsbrook, chief economist for Regions Bank, in Birmingham, Ala."Men and women wear bright colors when they feel confident, and drab beige colors when they feel bad," says Allsbrook. "Men's ties are a leading indicator because they're a very inexpensive way to change a wardrobe." Last summer, even before Lehman Brothers fell into bankruptcy, Allsbrook says he saw muted wardrobes, what he calls "funeral clothes." And now? "Since the start of the summer, I've seen lots of men wearing pink and fuchsia colored ties," he says.

The story goes on to look at some other possible leading indicators, including: telecommunications infrastructure, wine auction results at Christie's, denim sales, hotel cancellations and even restaurant garbage piles:

Americans are eating out again, and that's a good sign. You can see that trend in the size of the garbage piles behind restaurants, says Sam Firer, a consultant for the Hall Company, a restaurant advisory. "The garbage is not from what people have eaten, it's from what you use to make the food," says Firer, whose clients include New York's B.R. Restaurant Group, which owns Dos Caminos, Blue Water Grill and Blue Fin. After a rough 2008, he adds, "this summer it was stinky [of garbage] again."

Forget the Stock Market, Just Look for Pink Ties

Another chapter for the unfolding “Rational People/Irrational Government” saga…

Americans are gambling less as they increase savings, reduce debt and approach discretionary spending with caution. This has put a dent in state tax revenues. A dispatch in The New York Times notes that gambling-related tax revenue was down more than 7% in the fiscal year that ended in June in the 12 states with commercial casinos. What to do? Coax the citizens to gamble even more, of course:

In hopes of enticing more gamblers, New Jersey lawmakers have repealed a smoking ban, and in Illinois they are considering allowing free drinks on riverboat casinos… Gambling critics have long maintained that it provides short-term revenue at the expense of long-term social costs, such as increased crime and addiction. But the new data also shows that the revenue collected by states and local governments is decreasing while competition for it is on the rise. Still, state leaders are looking for ways to g et a piece of the earnings. Here in Ohio, Gov. Ted Strickland, a Democrat and a former Methodist minister, reversed his opposition to gaming and, in conjunction with the Legislature, issued a directive allowing video slots at the state’s seven race tracks.

You can’t make this stuff up.