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8 Signs That The Economy Is Still Struggling to Recover

Mar. 4, 2013 12:51pm

The U.S. Department of Labor every Thursday releases its weekly unemployment applications aid report. And every Thursday, we watch with some amusement as certain news outlets try to spin the numbers in a positive light.

For instance, just a few weeks ago, when the Labor Department announced initial claims jumped by 22,000, a certain source claimed that this increase suggested “modest hiring.”

Come again?

We hate to be the bearers of bad news, but things are still tough out there. True, the Dow and the S&P have in recent weeks seen an explosion in activity (a very welcome change indeed), but this doesn’t necessarily mean that the economy is booming.

Indeed, between rising gas prices, the Fed’s worries over its open-ended $85 billion monthly bond purchases, Q4’s miniscule 0.1 percent growth, and the largest monthly decline in personal income in the last 20 years, we’re going to go out on a limb here and say that this economy isn’t exactly on the “upswing.”

There’s still a ​lot ​of work to be done.

But don’t take our word for it. Here are eight signs that U.S. consumers and businesses are still struggling [via The Economic Collapse]:

1. Credit Cards

Eight Signs That U.S. Businesses & Consumers Are Still Struggling

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According to one brand new survey, 24 percent of all Americans have more credit card debt than money in the bank.

2. Retail Giant Continues to Struggle

Eight Signs That U.S. Businesses & Consumers Are Still Struggling

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J.C. Penney was once an unstoppable retail powerhouse, but now J.C. Penney has just posted its lowest annual retail sales in more than 20 years…

J.C. Penney Co. (JCP) slid the most in more than three decades after the department-store chain lost $4.3 billion in sales in the first year of Chief Executive Officer Ron Johnson’s turnaround plan.

The shares fell 18 percent to $17.40 at 11:28 a.m. in New York after earlier declining 22 percent, the biggest intraday drop since at least 1980, according to data compiled by Bloomberg. J.C. Penney yesterday said its net loss in the quarter ended Feb. 2 widened to $552 million from $87 million a year earlier. The Plano, Texas-based retailer’s annual revenue slid 25 percent to $13 billion, the lowest since at least 1987.

How much worse can things get?  At this point the decline has become so steep for J.C. Penney that Jim Cramer of CNBC is declaring that they are in “a true tailspin“.

3. Car Purchases

Eight Signs That U.S. Businesses & Consumers Are Still Struggling

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In the United States today, a new car has become out of reach for most middle class Americans according to the 2013 Car Affordability Study…

Looking to buy a new car, truck or crossover? You may find it more difficult to stretch the household budget than you expected, according to a new study that finds median-income families in only one major U.S. city actually can afford the typical new vehicle.

The typical new vehicle is now more expensive than ever, averaging $30,500 in 2012, according to TrueCar.com data, and heading up again as makers curb the incentives that helped make their products more affordable during the recession when they were desperate for sales. According to the 2013 Car Affordability Study by Interest.com, only in Washington could the typical household swing the payments, the median income there running $86,680 a year.

4. Subway

Eight Signs That U.S. Businesses & Consumers Are Still Struggling

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The founder of Subway Restaurants, Fred Deluca, says that the recent tax increases are having a noticeable impact on his business…

“The payroll tax is affecting sales. It’s causing sales declines,” he said, estimating a decline of about 2 percentage points off sales at his restaurants. “There are a lot of pressures on consumers,” Deluca said, adding “I think this is on the permanent side, but I think business will adjust to it.”

5. Restaurants Struggling

Eight Signs That U.S. Businesses & Consumers Are Still Struggling

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Many other large restaurant chains are also struggling in this tough economic environment…

Darden Restaurants, which owns the casual dining chains Oliver Garden, LongHorn Steakhouse and Red Lobster, said blended same-store sales at its three eateries would be 4.5 percent lower during its fiscal third quarter.

Clarence Otis, Darden’s chairman and chief executive, said that “while results midway through the third quarter were encouraging, there were difficult macro-economic headwinds during the last month of the quarter.”

“Two of the most prominent were increased payroll taxes and rising gasoline prices, which together put meaningful pressure on the discretionary purchasing power of our guests,” he added.

6. Family Dollar

Eight Signs That U.S. Businesses & Consumers Are Still Struggling

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The CFO of Family Dollar recently admitted to CNBC that this is a “challenging time” because of reduced consumer spending…

At Family Dollar where the average customer makes less than $40,000 a year, the combination of a two-percent hike in the payroll tax, rising gas prices and delayed tax refunds has created a “challenging time and an uncertain time for the consumer right now,” said Mary Winston, the company’s chief financial officer.

“In our case, anything that takes money out of our customer’s wallet gives them less money to spend in our stores,” she told CNBC. “So I think all of those things create nervousness for the consumer, and I think there are sometimes political dynamics going on that they might not even fully understand the details, but they know it’s not good.”

7. Sad Face

Eight Signs That U.S. Businesses & Consumers Are Still Struggling

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Even Wal-Mart is really struggling right now.  According to a recent Bloomberg article, Wal-Mart is struggling “to restock store shelves as U.S. sales slump“…

Evelin Cruz, a department manager at the Wal-Mart Supercenter in Pico Rivera, California, said Simon’s comments from the officers’ meeting were “dead on.”

“There are gaps where merchandise is missing,” Cruz said in a telephone interview. “We are not talking about a couple of empty shelves. This is throughout the store in every store. Some places look like they’re going out of business.”

This all comes on the heels of an internal Wal-Mart memo that was leaked to the press earlier this month that described February sales as a “total disaster”.

8. Best Buy

Eight Signs That U.S. Businesses & Consumers Are Still Struggling

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Electronics retailer Best Buy continues to struggle mightily.  Best Buy just announced that it will be eliminating 400 jobs at its headquarters in Richfield, Minnesota.

Click here to see eight additional signs and the full list of 16.

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Comments (67)

1 2
  • Ragnars Repos
    Posted on March 4, 2013 at 5:11pm

    Listen up!

    The economy ISN’T GETTING BETTER, FOLKS.

    It will not get better–it can’t.

    Anyone with any brains can look at even the limited information we get about our government and our economy and see that it isn’t going to get better.

    They have put into place mechanisms that are destined to destroy prosperity.

    FACT: Obamacare/socialized medicine alone will/has permanently lowered the standard of living for Americans. Get used to having less.

    Conservatives, your beloved “social safety net” is very expensive, and it costs much more than money.

    You want big government “protection”, well, you got it, dolts!

    Welcome to socialism, Americans.

    Report this comment

    Ragnars Repos  
    • jman-6
      Posted on March 4, 2013 at 10:23pm

      Ragnar: While we do have many socialistic programs in place and this administration has strong marxist tendencies, what we don’t have is Socialism….This is far worse it’s called Crony-Capitalism!

      Report this comment

      jman-6  
    • dmerwin
      Posted on March 4, 2013 at 11:13pm

      Any future sequestration cuts should be .
      1. Cut the entire secret service budget.
      2. Eliminate the department of education.
      3. Equal cuts to social security, Medicare, Medicaid, and the department of defense in which the DOD chiefs can cut programs they do not see a purpose for.

      Report this comment

      dmerwin  
  • theglockguy007
    Posted on March 4, 2013 at 5:10pm

    The economy will continue to struggle for the next 4 years. If we can’t cut $44 billion out of a $3.6 trillion dollar budget, it’s all over….

    Report this comment

    theglockguy007  
    • dmerwin
      Posted on March 4, 2013 at 11:21pm

      38 to 50 billion in foreign aide and we GIVE 20 f-16s and 400 top of the line tanks to Egypt. That is where we start.

      Report this comment

      dmerwin  
  • wmcritter
    Posted on March 4, 2013 at 3:45pm

    This is all part of the plan. I don’t know why anybody would be surprised, this is the agenda that Obama campaigned on in 2008. This is exactly what he wants. As the economy falls, more and more people become dependent on government and those people always vote Democrat. Once more than 50% of the population is permanently dependent on government (currently at 47%), then the Democrats never lose an election again. The “evil white” rich will be taxed at 90% just like they used to be (and deserve because they are evil and white) and the permanent dependents will get everything for free and always vote Democrat. For the Democrats, it is utopia.
    And unless the few Americans that still believe in liberty act now, it will happen. We need a civil war, and we need it right now. Otherwise Greece is our future, with all the leeches rioting in the streets because the government can no longer afford their free stuff. Socialism only works until you run out of other peoples’ money, and then it all collapses in fire. This is what the people voted for, and this is what they will get. Unless we few have the courage to take up arms and stop it right now.

    Report this comment

    wmcritter  
  • Sargeking
    Posted on March 4, 2013 at 3:40pm

    This is an excellent article, spot on all across the board and it needed to be printed. You won’t see this story on AP&Reuters, nor on FOX. Spoon feeding the public on the really important news has become a standard wide media spin procedure. The BLAZE rocks! I love it!

    Report this comment

    Sargeking  
  • Frederick_Douglass_Republican
    Posted on March 4, 2013 at 3:29pm

    Stupid low income Oweblamer voters are taking the biggest hit. Many of them also want a gun and some bullets now. Too bad suckers. They’ve been scooped up months ago by those without their heads in the sand. They are also priced out of range for the low income Oweblamer voters when they can be found. Boo hoo hoo. Cry me a river. Suckers. At some point they may decide to break into the rich mans house (anyone with a nicer house than theirs that is) to get what they want. They’ll get their bullets then. Not the gun or even the cartridge. Just the bullet. Its not rocket science whats going down.

    Report this comment

    Frederick_Douglass_Republican  
  • Sargeking
    Posted on March 4, 2013 at 3:26pm

    When Wal-Mart is tabulated as struggling it only means the odds and ends sales of their stuff and not the super market. The skinny is that people have to prioritize and Wal-Mart still has the best prices on food. Most vehicle owners today are simply maintaining what they have. The best price for electronics is on the NET, presuming you know what and how to buy. The stock market is really scary for the small investor. The big players are all about the Short Sell. Otherwise, RUN! Restaurants all across the board have been in trouble for some time and its only getting worse each new day. The article didn’t include travel to theme parks (Disney World) or even Las Vegas but they are in the deep end of major trouble and their hotels are 80 per cent empty. Oh well, is a deep subject. Thanks Obama. We owe it all to you!

    Report this comment

    Sargeking  
  • Rightwingconservativenut
    Posted on March 4, 2013 at 2:42pm

    The low information voters voted him in. Now see what we got. I do not give anyone a hard time for not voting. If you do not know why you are voting for him don’t vote. As for the in-formed voter we all saw this coming both times.

    Report this comment

    Rightwingconservativenut  
  • Outlaw_Josey_Wales
    Posted on March 4, 2013 at 2:42pm

    Negative GDP 4Q 2012. January 2013 personal income largest 1 month drop in 20 years. ($505.5 billion on an annualized basis or $42.12 billion a month). Obama is out there telling everybody the republician’s and their $85 billion sequester spending cut will hurt the economy. The real cause of the economic slow down is the consumers will have $505 billion less money to spend in 2013.

    Report this comment

    Outlaw_Josey_Wales  
    • Outlaw_Josey_Wales
      Posted on March 4, 2013 at 2:57pm

      Also $505 billion decrease in annual personal income, is equal to 3.23% of GDP. 1Q of 2013, a negative GDP of over 3% is possible.

      Report this comment

      Outlaw_Josey_Wales  
    • theconservativeright
      Posted on March 4, 2013 at 3:31pm

      Look how bad it is with the false numbers the Government gives us. Just imagine what the REAL NUMBERS look like. I’m afraid it could really upset the World economy, let alone our own.

      Report this comment

      theconservativeright  
    • Eternal
      Posted on March 4, 2013 at 10:11pm

      Yep, GDP is 70 % consumer spending and consumers are spending hesitantly. Baltic Dry goods index lowest it’s been in two years n well below its 1000 inception point in 1985. My employer is the largest software n hardware provider in the world and they are running….Very lean ongoing. Prices of food items burns thru budgets and add gasoline and not much left for non essentials. I do notice people increasing booze intake esp consumed off presence / at home. ShadowStats.com has good picture of Econ. And yes this horrible economy is planned to drive Americans to become dependent on Feds … Becoming SLAVES and puppets. I hope economy tanks and we have a second Revolution because this may be the only solution we have left to keep our liberties. Keep the Faith, though.

      Report this comment

      Eternal  
  • Dde13
    Posted on March 4, 2013 at 1:53pm

    Barry has NO plan help the FREE market to recover. It goes against his DNA. The man is a control freak. Unless he has you in his welfare system or his hands in your pockets he is not finished. It’s all about CONTROL. If I hear the idiot say”because its the right thing to do” one more time I’m going to lose it. Obviously his right thing to do has been the WRONG thing for FREEDOM.

    Report this comment

    Dde13  
  • jackact
    Posted on March 4, 2013 at 1:43pm

    1.) The White House travel expenditure budgets are still approved (limit-less).
    2.) Tiger Wood golf lessons are still approved ($1000.00 hourly).
    3.) Air Force One domestic pet transportation still approved.
    4.) ‘Friends of Michelle Obama’ travel vouchers are still approved.
    5.) Lincoln bedroom overnight rates (and by the minute for Soros) still approved.
    6.) Lifetime health benefits for ALL of congress still approved.
    7.) Direct investment of social security for ALL members of Congress still approved.
    8.) Direct payments to Jesse Jackson Jr (for his continuing silence) still approved.

    Report this comment

    jackact  
  • cessna152
    Posted on March 4, 2013 at 1:38pm

    “8 Signs That The Economy Still Hasn’t Fully Recovered”….Followed by the story “Does this Church really look like a chicken”?

    Pretty good reason why most people have NO clue that our society is crumbling…they’ll read the “chicken” story!

    Report this comment

    cessna152  
  • cessna152
    Posted on March 4, 2013 at 1:30pm

    Only items that are selling:

    —Ammo
    —Canned foods.
    —-Guns
    Oh yeah….did I mention Ammo?

    Sorry, but the 17.6% (or higher) U6 is all you really need to know. This dope in office plus our government spending like drunken Communists = DISASTER!

    Report this comment

    cessna152  
    • Cavallo
      Posted on March 4, 2013 at 2:00pm

      Ammo is getting hard to find. I wonder what the red tape would be to open a munitions factory, or what the import regulations are for importing smokeless powder, brass, and lead.

      Report this comment

      Cavallo  
    • Eternal
      Posted on March 4, 2013 at 10:14pm

      17.6 u6 in some cities is 22 to 26. Detroit is 48 but no one cares about Detroit. We on way to becoming Greece

      Report this comment

      Eternal  
  • team1blazer
    Posted on March 4, 2013 at 1:26pm

    Hey everybody, ROOKIE is back spewing his Keynsian economic theories. So surprised that “spending our way out of debt” is NOT working.

    Report this comment

    team1blazer  
    • progressiveslayer
      Posted on March 4, 2013 at 1:33pm

      Those Keynesian puffers are a hoot huh? They think we can spend our way out of this but that aint happening.

      Report this comment

      progressiveslayer  
  • team1blazer
    Posted on March 4, 2013 at 1:22pm

    @JROOKie I look forward to watching FOOLS like you digging in garbage dumps for your next meal when the manuer hits the ventillator.

    Report this comment

    team1blazer  
    • jorskippy
      Posted on March 4, 2013 at 3:39pm

      Unfortunately, he will be at our doors with his gun to steal our food, guns and ammo. At least try too. All those freeloaders will be rioting in the streets looking for food. Killing, destroying, stealing, get your guns ready.

      Report this comment

      jorskippy  
  • deeberj
    Posted on March 4, 2013 at 1:20pm

    All I know is, that as a state gov’t employee who never gets a raise unless the legislature votes one in, it FEELS like I’m making less and less money every year. With my income not increasing but my rent and EVERYTHING else increasing, I’m essentially making less money than I did the year before and so on. In the last 10 years I got 3% increase total.

    Report this comment

    deeberj  
    • huey6367
      Posted on March 4, 2013 at 1:27pm

      I would say go joint the private market but that is a difficult thing to accomplish at this moment.

      Report this comment

      huey6367  
    • Eastinfection
      Posted on March 4, 2013 at 4:08pm

      DEEB… everything is relative..

      My family-owned Construction business succeeded for 20 years.
      It started to flop- out of no-where- in 2009.
      At the time i was making 50k with full benefits.
      2010- 35k w/ full benefits.
      2011- 25k w/ 0 benefits
      bailed and started my own biz in 2012 – 30k…. 0 benefits
      on pace for the same in 2013…. no healthcare, ira, or other benefits.
      Owner/ operators are NOT eligible for unemployment, either….. also “over qualified” for jobs paying more than 30k.
      Cry me a river… or be thankful for the safety-net you have… that MY 30%/ year taxes have paid for.

      Report this comment

      Eastinfection  
    • frediniowa
      Posted on March 4, 2013 at 6:03pm

      the thing eatingflection wrote made me sign up her because it’s what i would write. this is what i am dealing with 2 a “T”. it sux. good luck to anyone with a remodeling or construction company not getting government contracts.

      Report this comment

      frediniowa  
  • team1blazer
    Posted on March 4, 2013 at 1:19pm

    ANYONE with even half a brain knows that the economy is NOT improving. Granted some sectors are seeing a modest upswing (new housing starts), but even those are very modest, and mostly based on speculation. Overall, the economy is simply crawling, and will continue to crawl until we ALL address the out of controll deficit and spending in Washington. And we’re giving Egypt another 250 million? Did Congress approve this? If not, it’s unconstitutional. Grow a set congress and DO YOUR JOB!

    Report this comment

    team1blazer  
  • RaydocX
    Posted on March 4, 2013 at 1:16pm

    #9: BHO still in office.
    #10: Pelosi and Reid still in office.
    #11: BaldingEagle comparing Beck and Limbaugh to televangelists, still drinking the kool aid.

    Report this comment

    RaydocX  
  • Snowleopard {gallery of cat folks}
    Posted on March 4, 2013 at 1:16pm

    No surprise given the economic devastation inflicted on us all by Obama and the insanity of the left.

    Report this comment

    Snowleopard {gallery of cat folks}  
  • SpankDaMonkey
    Posted on March 4, 2013 at 1:15pm

    .
    That list should have read….

    1. Obama is President

    2. Obama is President

    3. Obama is President

    4. Obama is President

    5. Obama is President

    6. Obama is President

    7. Obama is President

    8. Obama is President

    9. Everything else obvious to a Box of Rocks…..

    Report this comment

    SpankDaMonkey  
  • progressiveslayer
    Posted on March 4, 2013 at 1:13pm

    Sounds like the managed decline is moving right along,the trick for the Marxist POS will be to fool the masses(shouldn’t be a problem) long enough to get his police state finely tuned for the final phase of his plan. No ammo or jobs for Americans and plenty of ammo and government jobs expanding exponentially could result in a civil war. Hmmm I wonder how the Kenyan would put down an uprising?

    Report this comment

    progressiveslayer  
  • SciPro
    Posted on March 4, 2013 at 1:13pm

    It’s hitting the fan … and you know what. Few people realize how low food stocks really are … some think that those big box stores like Walmart have huge inventories .. this latest says ..’not so’, it’s a further wake-up call to those of us who are interested in such things. Just think .. A run on a fully stocked food store, could empty shelves in hours, a couple days at most .. to me that’s very scary, and then top this shortage off with Obama’s policies, you have the makings of .. Disaster! .. just saying

    Report this comment

    SciPro  
    • ilovepotatoes
      Posted on March 4, 2013 at 6:37pm

      Buy some fresh potatoes! They are cheap and nutritious! And unfortunately, there are a lot of them on the market, so buy a lot! Store them at 40 degrees and they will keep for a very long time!

      Report this comment

      ilovepotatoes  
  • mikem1969
    Posted on March 4, 2013 at 1:13pm

    Imagine that the lies the left paints about the economy every single day are just that, LIES.

    Report this comment

    mikem1969  
  • Cavallo
    Posted on March 4, 2013 at 1:12pm

    Bobo the Wonderkin Uber Marxist: Working to lower your standard of living since 2008. Thanks Bobo!

    Report this comment

    Cavallo  
  • BaldingEagle1776
    Posted on March 4, 2013 at 1:05pm

    The most glaring sign is the increase in money being raised by the new televangelists (beck, limbaugh, etc).

    Report this comment

    BaldingEagle1776  
    • huey6367
      Posted on March 4, 2013 at 1:15pm

      Stop with left wing trolling. Go post on Madcow’s blog.

      Report this comment

      huey6367  
    • JRook
      Posted on March 4, 2013 at 1:16pm

      “we watch with some amusement as certain news outlets try to spin the numbers in a positive light” not to worry beckett as we know you will spin it as negatively as possible.

      Report this comment

      JRook  
    • The-Monk
      Posted on March 4, 2013 at 1:16pm

      BladingBeagle,

      Tick tock…. tick tock….

      Only 3 1/2 hours left EtchyPorky. Better get a move on (.org) LOL

      Report this comment

      The-Monk  
    • JRook
      Posted on March 4, 2013 at 1:20pm

      “a new car has become out of reach for most middle class Americans” which of course has more to do with the two, longer term issues that plaque the US economy. The decline in real wages since the 1980′s and the increased concentration of wealth during the same time period. Along with one way free trade agreements that did nothing but help US corporations move jobs overseas, these two items have caused the stagnation in demand. Because it has always been the demand from the middle class that fueled the economy and created jobs. If the wealthy getting wealthier actually created jobs the unemployment rate would be 1% by now.

      Report this comment

      JRook  
    • progressiveslayer
      Posted on March 4, 2013 at 1:27pm

      Rookie Along with one way free trade agreements that did nothing but help US corporations move jobs overseas, Yeah taxes,draconian regulations and unions had absolutely nothing to do with corporations moving overseas,zip zero nada.

      Report this comment

      progressiveslayer  
    • BaldingEagle1776
      Posted on March 4, 2013 at 1:41pm

      The-Monkey, what’s this about signing off? Are you telling me that you blowhards are on here all day and all night? Don’t you have a family or a life? Does not sound like it to me.

      Report this comment

      BaldingEagle1776  
    • Cavallo
      Posted on March 4, 2013 at 1:42pm

      @JRook, Clamming up global trade isn’t going to help the US Economy. Freedom is what creates economic wealth. There is also no such thing as “middle class”. It’s an arbitrary term that shifts definitions depending on the political needs of the centralized authority. There really are only two classes of people in the United States, the Political Class, and the peasants. The Political Class isn’t restricted to those that get a “for life” deal by being elected to the congress either, there are quite a few individuals and businesses that leech onto The Beast like lampreys on a shark, catching the debris and waste as it tears through free and independent people.

      Report this comment

      Cavallo  
    • The-Monk
      Posted on March 4, 2013 at 1:54pm

      BaldingBeagle,
      “Are you telling me that you blowhards are on here all day and all night? Don’t you have a family or a life?”

      He says while sitting in front of a computer and posting on the Blaze….. LMAO !!!

      Report this comment

      The-Monk  
    • BaldingEagle1776
      Posted on March 4, 2013 at 2:04pm

      The-Monkey, I said “all night” as well. You are implying that I’m going to stop posting to this board later on. Yes, I will stop later. Why is that so funny? Because I’m not going to keep posting into the night? Like you do, I presume? That doesn’t make you cool, it makes you a loser. Get a life!

      Report this comment

      BaldingEagle1776  
    • Zipit
      Posted on March 4, 2013 at 2:14pm

      Long live “BALDWANGO”!!!!!

      Report this comment

      Zipit  
    • The-Monk
      Posted on March 4, 2013 at 2:41pm

      BaldingBeagle,

      Translation…. “I’m a paid troll and I get off at 5pm”

      LMAO !!!

      Report this comment

      The-Monk  
    • Eastinfection
      Posted on March 4, 2013 at 4:24pm

      lol ZIP…

      “Long live “BALDWANGO”!!!!!”

      Ding ding ding…

      http://www.youtube.com/watch?v=UvOdaE19ZUw

      Report this comment

      Eastinfection  
  • Cabo King
    Posted on March 4, 2013 at 12:59pm

    Anyone suprised

    Report this comment

    Cabo King  
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