Economist: Walmart, Macy's, Target Earnings Mean 50% Chance of Recession

According to economist Howard Davidowitz, the American economy’s dismal state is obvious from the declining profits of Walmart. Walmart, a bellweather for consumption, reported earnings of $1.24 a share, as opposed to $1.25 per share. That may sound like a small difference, but sales in stores open for over a year went down a full 0.3%. Walmart cited a “challenging sales and operating environment.” Davidowitz says, “The economy is in collapse. That’s what’s going on.” Davidowitz says that Walmart isn’t the only store expected to report problems – Target, he predicted will have negative comp stores sales in next week’s report. Macy’s, too, has reported lower than expected earnings. “I don’t think we’re in a recession right now, but I think there’s  50 percent chance we’ll be in one next year,” Davidowitz predicts. “We’ve spent all the money, we’ve borrowed all the money, and we’re in the tank.”