Zales Contracts, TJX Expands, GM Goes Bankrupt, 377 Closings, 687 Openings

Speaking of extremes, one small California mattress retailer, Banner Bedding, emerged from Chapter 11 as a viable and functioning company last week. Compared to the 50-odd retail chains that didn’t make it out of Chapter 11 alive, this is big news. Compared to the three new Chapter 11 filings made by much larger retail chains last week, this is just interesting trivia. Compared to the General Motors Chapter 11 filing yesterday, this is barely worth mentioning.

What is left to say about GM’s Chapter 11, the fourth largest bankruptcy reorganization in the history of the United States? Operations shutdowns will doom suppliers, $15 billion more tax dollars will stress consumers, and a private sector corporation being run by a public sector bureaucracy will defy the laws of nature.

A third, and decisive round should go to fear, although most people seem to be either numb or apathetic about the whole auto industry thing. Denial is probably better than panic at this point anyway.

Savings rose, consumption dropped. Wall Street bulls were stronger, the U.S. dollar was weaker. Consumer confidence rose for the third month in a row, household spending fell for the second month in a row. It was an eventful week for the retail industry, and there will undoubtedly be more eventful weeks to come.

The fight for stabilization ain’t over till it’s over.