Tuesday, January 27, 2009

Analyzing Another Potential Bailout

First our banks failed, then our porn industry calls for a bailout as well. Now our auto industry teeters on the brink of collapse. But another big failure is on the horizon with consequences we cannot possibly imagine.
JDB: Quick! We need a bailout of the chicken wing industry!

CWK: Also, I demand a chicken wing industry bailout. The cascade effect as this spills over into our chili and potato skins industry is too much for the economy to bear.

JDB: Chicken Wings is an industry TOO BIG TO FAIL! Oh sure, BW3 can weather the initial storm, probably buy up the smaller failing players but if this is allowed to go on our entire sports bar industry could be taken down.

CWK: It's the small local firms like Scotty's Brewpub that will really feel the effects. Think of the small businessman!

CWK: And of course all the firms the sports bars buy supplies from. I don't think people realize how embedded into the economy the bar food industry is.

JDB: America's over-extension of the chicken wings will also hurt other solid areas within the Sports Bar Market. Sure, the potato skins sector is on solid footing but the weakness of chicken wings will drag it all down.
Not to mention the international effects. China, for one, will feel an impact of an American Chicken Wing Crash

CWK: Why this statistic I have here from the totally unbiased and not at all funded by the bar food industry Center for Bar Food Research (Located in Buffalo, NY) says that unless the "Big Three" sportsbar chains (BW3, Hooters, Damons) get a bailout it could cost the US economy eleventy billion dollars and 3 million jobs.

CWK: If you disagree, then clearly you hate bartenders and food service professionals and want their families to starve.

JDB: Of course, calls to let the Sports Bar Market crash and reorganize on its own into smaller regional or local chains less apt to bring down ancillary markets are roundly dismissed by the CBFR.

JDB: The best compromise I believe would be a nationalization of the Sports Bar Industry, with the government eating the bad Chicken Wing Assets while selling the still strong Potato Skin and Mozzarella Stick sectors. If/when chicken wings rebound, America will then be better off and able to profit from them
I don't think America has faced a crisis like this since the New York Bagel Crash of 1934.

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