Fender and the Economy

[Paul Wolfe]

I read a very interesting article here about how the economy is affecting Fender and Guitar Center.

There's a very scary comment in the article, "It’s worth remembering that the accordion was once the most popular instrument in America." Can you imagine a day when someone could say that about the guitar?

I found this very telling: " But this heart of rock isn’t beating quite the way it once did. Like many other American manufacturers, Fender is struggling to hold on to what it’s got in a tight economy. Sales and profits are down this year. A Strat, after all, is what economists call a consumer discretionary item — a nonessential.

More than macroeconomics, however, is at work here. Fender, based in Scottsdale, Ariz., is also being buffeted by powerful forces on Wall Street.

A private investment firm, Weston Presidio, controls nearly half of the company and has been looking for an exit. "

There's been lot's of talk about the economy, this one hit home with me.

[Geo Sav]

Yeah paul! Its very scarey out there. We have a family bussiness and it has been tough. I just mentioned to a friend in conversation that I haven't purchased a guitar in at least 5 years.

[Paul Wolfe]

I've bought maybe 5 in the last year, but the Gretsch was the only 'new' one and that went to the pawn shop a year ago... I buy $100 fixer uppers at the pawn shop, fix 'em up and trade them back for other ones. The frankenstrat I got most recently is a keeper though... it plays so nice. The neck only has 21 frets though, which makes some solos impossible!

[rice_pudding]

Hmmm, I haven't thought about it, but I haven't bought a guitar for two years, and before that another two. No plans for another at the moment either!

Rob

[oth]

Guitar Center is owned by Bain Capital-yeah that Bain.As soon as wall st gets involved,beware of quality.Remember ,Romney and his ilk's only interest is to get max selling value before dumping the company.Wonder if Gibson is doing better than these 2 wall st owned firms?

[rice_pudding]

My general opinion towards finance is that shit always hits the fan once share holders pop up.

Rob

[oth]

My general opinion towards finance is that shit always hits the fan once share holders pop up.

Rob

I read the link after i made my post.Just a rambling article about nothing really.Just mindless filler.Yahoo journalism quality.
I wouldnt give an economist anymore credibility with predicting musical trends than i would with the economy.They are about as accurate as palm readers.

[rice_pudding]

Sounds like 'speculation' at work then.

rice_pudding's pet peeve No.16

Rob