The BBC reports that Starbucks are cutting 6,700 jobs worldwide, with the closure of 300 stores. This may have something to do with the announcement that quarterly profits were down 69%, although I'd like to think that my decision to give up my regular vanilla latte was a contribution.
Frankly, I'm surprised that it has taken this long, given the cost of their product. However, it is a sign that people are reining in their spending in anticipation of a long, hard recession. If that money is used to buy other things, then all is good. If it is used to pay off debt, we could be mired in gloom for some time.
Unfortunately for the Government, I'm more inclined to the cautious view and, whilst I tend to shun debt, the idea of building up my savings, if only in a small way, is an appealing one. Forget the miserable interest rates, the idea of having reserves is reassuring.