Funny New Economic Theory, The More Starbucks The Worse

[Jingthing]

OK, this is quite funny.

This article supposes that the more Starbucks a country has, especially in its capital city, the more vulnerable they are in the current financial crisis. There is also a link to see how many Starbucks in Bangkok and Thailand. It turns out ... lots!

http://www.slate.com/id/2202707/

87 Starbucks just in Bangkok:

http://ie.starbucks.com/en-ie/_Our+Stores/...p;FC=&City=

Living in Jomtien, I had thought it was a good sign to get a Starbucks in the neighborhood (we don't have one), but this theory gives me pause.

Edited October 21, 2008 by Jingthing

[VegasVic]

OK, this is quite funny.

This article supposes that the more Starbucks a country has, especially in its capital city, the more vulnerable they are in the current financial crisis. There is also a link to see how many Starbucks in Bangkok and Thailand. It turns out ... lots!

http://www.slate.com/id/2202707/

87 Starbucks just in Bangkok:

http://ie.starbucks.com/en-ie/_Our+Stores/...p;FC=&City=

Living in Jomtien, I had thought it was a good sign to get a Starbucks in the neighborhood (we don't have one), but this theory gives me pause.

It may not be quite as funny as you think! Its a bit of a contrarian indicator and personally I think that ther is some validity to it! Of course I am not a big coffee drinker and I think that someone buying a $5 cup of coffee is the height of insanity

[phaethon]

It has also been demonstrated that global warming is the result of a declining pirate* population:

(*proper pirates - eye patches, parrots, wooden legs etc. not those modern imposters)

[VegasVic]

It has also been demonstrated that global warming is the result of a declining pirate* population:

(*proper pirates - eye patches, parrots, wooden legs etc. not those modern imposters)

Just what are those pirates dumping in the worlds oceans?

[innovator]

Well, a 5.00 cup of joe is a sign of affluence. How many poor or working class folks do you see standing in Starbucks???

Most of those folks will make coffee at home for pennies per cup, or perhaps, they don't drink coffee at all.

So, this theory is amusing, but it really is simply an artifact of affluence in rich sectors of these countries. It is merely part of the overall 'Domino Effect' of the global financial meltdown.

[VegasVic]

Well, a 5.00 cup of joe is a sign of affluence. How many poor or working class folks do you see standing in Starbucks???

Most of those folks will make coffee at home for pennies per cup, or perhaps, they don't drink coffee at all.

So, this theory is amusing, but it really is simply an artifact of affluence in rich sectors of these countries. It is merely part of the overall 'Domino Effect' of the global financial meltdown.

You might be surprised just who Starbucks customers are. I go over to the subway sandwich on occasion and there is a Starbucks next to it, and I have seen construction workers, hotel employees, even the guy who works at the 7-11 across the street in there. Now it may be very different overseas but here in the states it seems all sorts of rank and file folks frequent Starbucks and that might come to an abrupt halt if the econom gets worse.

[Ricardo]

The som-tam lady says, some of the branches of Starbucks one sees here in Thailand, may perhaps be counterfeit.

How might this affect the theory, I wonder ?

[innovator]

In America, a construction worker can earn quite a high hourly wage compared to a construction worker from Burma or Laos in Thailand. So, it doesn't surprise me that you can see laborers and 7/11 clerks drinking a triple latte/mochachino swirl whipped half/cream shaken not stirred, overpriced drink.

But, in Thailand, many of the laborers and construction hands are from Laos, Cambodia and Burma. It would be absolutely unimaginable that they would be dining in a Starbucks at 5-10 dollars per pop when you figure that they earn about 50-100 US per month, if they even get paid before getting deported!!!!!!!!!

[Jingthing]

The som-tam lady says, some of the branches of Starbucks one sees here in Thailand, may perhaps be counterfeit.

How might this affect the theory, I wonder ?

I doubt that very much. They can afford lots of lawyers. Be wary though if the sign says Starboks or Stirbuks or looks anything like this:

[IMA_FARANG]

OK, this is quite funny.

This article supposes that the more Starbucks a country has, especially in its capital city, the more vulnerable they are in the current financial crisis. There is also a link to see how many Starbucks in Bangkok and Thailand. It turns out ... lots!

http://www.slate.com/id/2202707/

87 Starbucks just in Bangkok:

http://ie.starbucks.com/en-ie/_Our+Stores/...p;FC=&City=

Living in Jomtien, I had thought it was a good sign to get a Starbucks in the neighborhood (we don't have one), but this theory gives me pause.

It may not be quite as funny as you think! Its a bit of a contrarian indicator and personally I think that ther is some validity to it! Of course I am not a big coffee drinker and I think that someone buying a $5 cup of coffee is the height of insanity

Absolutely. It's not Starbucks per se, but Starbucks coffee is the classic example of an overpriced commodity. Real estate prices in the U.S. for the last 20 years are another.

Does it really make sense that you can buy a 150 thousand dollar house, do nothing to make improvements on it for 10 years, and then sell it after 10 years for 250 thousand? NO, it doesn't.

The only real rational explanation that the dollar that is being used to pay for that house does not have the same value as it did ten years before.

Inflation, the cost of a commodity is caused by scarcity of that commodity.

Deflation, the drop in purchasing power of a currency, is caused by an oversupply of currency or easy credit which leads people to willling pay a price higher than the real value of a commodity because they have access to the currency.

Both inflation and deflation are simply examples of the law of supply and demand

Credit cards, with it's built in interest charge, is a prime example of credit offered to easily.

Starbucks sells the same 50 cent cup of coffee, all gussied up in a fancy cup, fancy setting, and a lot of "special" premium blend boo-hah for $5.

It is the prime example of an overpriced, over-hyped commodity.

One of my friends once told me that the "new economics" (that I then said was cr#p) was illustrated by taking a 1980 Coca Cola can, burying it in the ground for 20 years, then selling it in 2000 for at least a 50 percent profit because it was rare. I told him then that the "emperor had no clothes" as the old story goes.

Now the so-called credit crunch/global correction/market realignment....or whatever you want to call it...is proving that the emperor really never DID have any clothes.

-----------------------------------------------------------------------

P.S. And also, if you ever saw the show, "Buffy the Vampire Slayer" then you should remember that Buffy found one of the portals into hel_l was in a the basement of a Starbucks.

Fair Warning.

Edited October 24, 2008 by IMA_FARANG

[MickeyM]

Saw a coffee shop at Guangzhou (China) International Airport last month selling coffee at 78Y per cup (over $!! US)

[simcity]

starbucks should have wait before closing 61 of it 84 stores in australia in august

[brahmburgers]

caffeine is addictive. Being over-caffeinated can lead to mental crashes later on - sort of like how you feel three hours after eating twenty jelly donuts.

I quit caffeine 14 years ago and have no regrets.

Q. how much worse are opiates or ganja - than caffeine? The first two are considered grave criminal no-no's punishable by death in some countries, the other is commonly accepted everywhere. I'm not advocating banning caffeine drinks (though I would like to see MSG banned) - instead, I'm seeing about more realistic official policies towards mind altering substances.

[Naam]

Saw a coffee shop at Guangzhou (China) International Airport last month selling coffee at 78Y per cup (over $!! US)

spent a week in Macau in march. wife wanted to do a bit of shopping but i was not interested to accompany her. so we agreed to meet 2 hours later in the lobby of our hotel. when she arrived and saw i was having coffee she wanted one too. when ordering her coffee (a little pot containing 1½ small cups with a side order of ONE tiny biscuit) i tried to hide the small slip which came with mine. investigative and curious how wives are she asked me why i had that funny feeling on my face (most probably thinking that slip was the receipt of some whorehouse i just visited ) i confessed that the little pot of (i admit good coffee) costs the equivalent of US-Dollars 16.45. you should have seen the face of my stingy better half!

[Naam]

Being over-caffeinated can lead to mental crashes later on - sort of like how you feel three hours after eating twenty jelly donuts. I quit caffeine 14 years ago and have no regrets.

i drink my two cups every morning and have no regrets. for many of us pussy is addictive. being over-pussied might not only lead to mental but to physical crashes too! until now i did not quit pussy and have no regrets but then i'm not overdoing it