Coffee is the froth on the economy

news today that starbucks is closing 1/3 of its stores in Australia. This is hot on the heals of similar news in North America.
I have always thought that coffee was a good measure of the disposable income in society. It is clearly getting tighter and this is an indication that a contraction is happening globally, not just in the US.

GM to cut jobs, sell assets and raise cash to survive | Reuters

GM to cut jobs, sell assets and raise cash to survive | Reuters

This is a bad sign that a real recession could be starting. It is not just this but the knock on effects on the economies.

Economic Woes

There have been rumors on various forums and boards for a while now about an economic and stock market crash at the end of July.
Undoubtably there is more bad news to come with the pressure on Freddy Mac and Fannie Mae. It is not just the impact on these leaders, but the knock on effect on confidence this will have. All sorts of trouble and panic could ensue (the market is built on confidence, which is a sign of a bubble I suppose).
Remember the rebate cheques have be sent and spent now, so expect the news to be less positive from here on in.