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Federal Reserve holding conferences at luxury resorts -- is that wrong?

Remember when the Federal Reserve and general public were blasting companies like AIG for going on retreats and holding conferences at luxury resorts? Well, on October 29, it was reported that the Fed has held its conferences at "exotic high-prices locales."

The Washington Post reported on October 28, that the San Francisco Fed hosted a conference at the "spectacular Bacara Resort and Spa" in Santa Barbara, where it paid $300 a night for the rooms -- an off-season price. Perhaps we should be praising the frugal nature of the Fed, as suites can run $2,000 during the peak season. Ben Bernanke attended this conference, which has drawn the ire of some. This conference was followed by a conference held by the Boston Fed at an Inn that charges up to $320 a night for regular rooms and nearly two grand a night for suites.

Continue reading Federal Reserve holding conferences at luxury resorts -- is that wrong?

Target beat masks problems

The cheap chic retailer beat the Street handily in its latest earnings numbers. That's no surprise, considering the dismal performance of Target (NYSE: TGT) as compared to peers over the past year. The drugstore that stocks everything nearly destroyed a hedge fund run by legendary investor Bill Ackman designed solely to bet on Target shares. I think Target's rebirth may not be long-lived. Piqqem Sentiment for Target is neutral. Investors may be giddy today but they should consider the obstacles to a full-blown revival.

Here's why. The company's growth in groceries just means more reliance in a notoriously low-margin and fickle consumer environment where they compete with brutal sharks such as Costco and Wal-Mart. Getting into the food biz is nothing to crow about, but that's just what the Target CEO Greg Steinhafel did on the conference call when he said the chain was seeing real gains in food shopping at Target stores.

Continue reading Target beat masks problems

Would you rather live near McDonald's or Starbucks?

Perhaps you will file this under things that only I find interesting, but this article details results from the Pew Research Center noting that 43% of people surveyed would rather live near McDonald's (NYSE: MCD) than Starbucks (NASDAQ: SBUX).

Interesting statistic. My guess is that the biggest reason the Golden Arches is more popular is that it offers far more food at a far cheaper price.

Continue reading Would you rather live near McDonald's or Starbucks?

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DJIA-74.9212,454.83
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Last updated: May 27, 2012: 02:14 PM

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