Is the economy failing?

Is the economy failing?

Gerry Harvey says retailers are in for a hard time and some traders will go broke after the Christmas sales. (http://www.smh.com.au/business/harvey-warns-of-more-failures-in-store-20121127-2a5pg.html)  I am not sure about this we hear news like this every year as if it is a goad that gets us to buy more stuff and save a retailer!

Yes the economy is slow and yes people are not spending as much as they normally do but does that mean the end is coming?

Responsible people who have solid business plans make room for slow years and unexpected changes in economic conditions. Like Harvey Norman they build in other income streams that help them get over the line. (In Harvey Norman's case a large real estate portfolio.)

I once saw a sign advertising a fictitious accounting firm called Grabbit and Runn! This does describe some people's business plans, sell make a profit and get out. Such companies will fail and are clearly not designed for the long term

So are we seeing and economic disaster or is the economic wheel turning and whilst some fall off a new generation of players waiting in the wings with improved business plans take over and so the cycle continues.

Me?! I think this is the Christmas goad to buy more stuff, (sorry Gerry) and I think that new ideas and products and stores will come into the market in 2013. What do you think?