As leveraged assets go down in value, the leverage multiples go up. Adding to that multiple is the falling dollar and the fact that these assets are in reality debt deposits, not cash deposits, that were passed on in different forms to be leveraged over and over.
With the consumer spending slowdown, Americans aren't buying luxuries the way they used to. Rather than shelling out the big bucks on high end products, people are trading down to more "affordable" luxuries. Why spend all that money on imported beer when Budweiser (BUD) or Coors (TAP) will do the trick?
That said, it's the little things in life that can make you feel rich. Like really great toilet paper. That's right—toilet paper. It's a $2.4 billion a year business, and brings in huge revenues for companies like Procter & Gamble (PG) and Kimberly-Clark (KMB). And here's some good news…most of us can afford to spend a little extra on something that can go a long way. For only $20 for three rolls, you can buy Renova's top of the line TP and feel like a million bucks.
Join Hoofy and Boo as they look at how toilet paper affects the economy, and how it can make almost anyone feel rich… or at least comfortable.
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