Totally Unplugged

Several news outlets reporting Circuit City is liquidating all assets: 35,000 more jobs lost as the company goes under.

It will not be the last major retailer to fold over the next several months.

[UPDATE] The deal for a buyer fell through. No takers on its assets, today was the deadline for a buyer and that deadline will pass without one, according to the story. Practical upshot, end of the company and 35k jobs down the drain.

[UPDATE 2] Although this was expected, the psychological impact of this is devastating. Bear Stearns didn't have a real impact on your Dad or brother or girlfriend. But everyone's shopped at Circuit City before. Anyone can go to the mall and see the big holes in the storefronts. Anyone can see Main Street is in serious trouble. And everyone is wondering "is my company next?"

There's going to be a lot more retail liquidations over the next few months, and the resulting empty storefronts and commercial real estate crash are going to really test the boundaries of a working depression.

I honestly don't see anything at this point that's going to prevent a 20-25% real unemployment rate by next year. A lot of people are going to be out of work and will not be able to get jobs, period.