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Starbucks Slashes Outlook, Blames Housing Meltdown
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Starbucks Slashes Outlook, Blames Housing Meltdown

Money – Starbucks Corp said on Wednesday it was the latest victim of the U.S. mortgage meltdown.

Tags: starbucks, coffee, mortgage, loss, company

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Wow, that's rich! Blaming their utterly crappy coffee on the housing meltdown? Some companies just become too big, too fast.

Friends don't let friends drink Starbucks...

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I didn't realize that Starbucks was in the mortgage market.

Well actually, yeah I did...I had to take out a small loan for a grande latte there the other day. I've had meals at Outback that were cheaper.

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Osama Bin Laden said his goal was to destroy the U.S economy, the two towers was the beginning. Who's winning the war??

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Starbucks officials are whining about their over-priced coffee not selling as well as they like, and somehow you tie that to Bin Laden?

Cue the "Twilight Zone" theme... Someone isn't playing with all his marbles.

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Hey The house market is approaching the worst in 40 years,

Eggs are up 32% in a year, even summer jobs for kids are at a level that of post world war two

Just a few years ago Schultz paid cash for The Seattle Sonics do you think he could do that now.

Is your job secure... airlines are going under, Boeing may lay off 10,000

you think this about coffee, wake up!!

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"You can paint a garbage can platinum and it's still just a garbage can". The point being that Starbucks needs to improve the quality of their coffee roasts, not just lower prices.

The $4 that I would pay for my coffee drink (venti triple soy mocha) should be better than the same coffee I can get anywhere. If they hope to survive the mom and pop that I frequent now.

Side note: why they continue to not make the Venti mocha a triple by default, baffles me.

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I can't imagine ever drinking a cup of coffee(crap), never have and never will and I am 50 so I couldn't care less if starbucks sinks.

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It's the taste and price of your coffee, duh!

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I drink coffee for only one thing...hot, steamy caffeine! The cheapest brew is fine for me as long as it pumps caffeine into my system.

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G.R.E.E.D. The wheel is round.

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It might be correct that coffee to go is among the first things you don´t buy any more, if your purse is empty.

But for me, it´s part of my life. The smell of fresh coffee alone can make me smile! But the prices at Starbucks are really somewhat too high. And, honestly speaking, instead of having someone writing my first-name down on the cup of cappuccino, it could be some ten cents cheaper ...

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Have never bought a cup of coffee that I paid more than a dollar for. McDonald's serves great coffee and since I drink only one a day, it isn't hurting the wallet. Starbucks is just crap as far as I'm concerned.

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Same here. Where I live (outside of Philly), a place called Wawa has (to me) far superior java at price much lower than $tarbuck$.

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I'm with you there. I get my coffee at Wawa's in Virginia because of their selection of good coffees (Kona, Kenya AA, Sumatra etc) and reasonable price.

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Mortage failures?? HA -maybe people are waking up to the fact that garbage in a silk purse is still garbage.

The coffee in 7-11 where you serve yourself alongside a guy in work clothes tastes a helluva lot better & costs a fraction of the price. & Oh yeah you don't need a dictionary to order.

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Aw, this is a shame. Are some people finally getting their priorities in order? Let's see. Coffee or mortgage? $100-$125 per month on Starbucks swill or put that money towards the mortgage. Decisions,decisions.

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Bit smarmy there don't you think jp?

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A bit smarmy, but absolutely correct.

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Just a bit.

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"Are some people finally getting their priorities in order?"

Well, if history serves us correct, and if human nature is any indication, that would be a big, resounding NO.

Chumps will continue purchasing overpriced coffee because they're so stupefyingly easy to be marketed to. They're the same whiners who gripe and complain about the price of gas, bicth about Bush, bicth about the oil companines, bicth about the Iraq war, yet fill their tanks and roar off - not a twit of personal responsibility or personal sacrifice exhibited. As long as they've made their gripe and voiced their opininon, that apparently suffices, and they've done their job for humanity.

Most people are morons, incapable of thinking for themselves or doing anything that might go against the herd mentality that they've become accustomed to and overly-comfortable with, and the personal habits they've grown themselves into. It's far, far easier to bicth and moan than it is to change a habit.

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I agree with ya. SB is the worst coffee and you have to wait in line like cattle to pay a premium for something that you can make at home. Wonder what makes anybody enjoy that??

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Wow Stelsewhere - I wish I could find that cave you live in so I can find true enlightenment

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"Most people are morons"

And obviously with your brilliant perspicacity and your venomous rhetoric you're the acknowleged leader of the pack.

As for habits to change.. How about a change in your writing habits which unceasingly pour scorn and vitriol on the human race.

I suggest Pluto as a friendly destination where you won't be disturbed by mere humans and their human foibles and can relieve yourself of your misanthropy in tranquillity.

Its true that we'll be waiting for years for the latest frothing enlightenment from your poisonous pen. As long as some of us have waited to enjoy one of those frothy drinks with a silly name.

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"Coffee or mortgage?"

More like: Coffee or gas and food? I doubt the "mortgage crisis" is affecting Starbucks one bit, unless they are trying to say people who were regular customers no longer can afford their crappy, overpriced product because they aren't working.

In most markets, 98-99 percent of mortgages are being paid. IN bad ones, more like 96-97 percent of mortgage payments are being met.

But, with gas and food costs rising damn near every day, you can bet people are cutting back on Starbucks and other overpriced coffee houses in favor of gas and food.

I used to work with a guy who spent a couple hundred dollars per month at Beaners and another couple hundred per month on lunches just during the work week. He could have bought a new car on what he was blowing at those places.

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I've always wondered why there is one on every corner?

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They are out to wash our minds with the caffiene rush and give us what we think we need.

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Actually it's because Ukranian satellites are beaming subliminal counter-advertising into their WiFi networks. Seems like some managements are so convinced that they're always right that they never go back and re-examine basics. Certainly seems like that here. It's much easier to connect with what's in the newspaper every day than going back to Marketing 101.

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Or maybe that vaunted training day Starbucks took did not fix what it was suppose to.

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maybe the government should subsidies the elite yuppies who think Starbucks coffee is any good. I can't drink that crap and I like it black, to damn bitter, tastes like columbian bean picker ******.

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Oh bother... I guess I will be the rebel...Starbucks makes a mean mocha and here in the DC area where I live (and where self-importance is epidemic) I've yet to meet a Starbucks employee with a bad attitude. I can't buy an extra hot "skinny" mocha served just the way I like it from Mickey Ds and on the rare occasions I visit the Golden Arches, I get my fries served with sneer on the side. ;-P But the thing that troubles me about this story is that I see more and more Starbucks workers who look like they should be at home enjoying their golden years and it just makes me worry what effects layoffs might have on that group in particular. ;-(

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What bothers me around the Starbucks here is that many of the people working there have college degrees. They should be in their classrooms, offices, or other white collar job. They take the Starbucks job to afford the gasoline to get to their other job.

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My impression is that it's just a convenient, relatively decent place to work (that whole tip sharing legal action notwithstanding) and the kind of job where you don't take your work home with you at the end of the shift and that might be the appeal to many people.

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I guess Starbucks coffee is losing equity. It was a fad who's time has come to pass.

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I have to ask...are the latte liberals up in arms over this issue yet? :)

Oh c'mon, just a wee joke, don't burst a button over it...

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Where I live there is literally a Starbucks about every half a mile on the main HWY. I pass 6 of them on my 10 mile commute to work. How long did they think they would be able to keep up opening so many stores and charging $4-7 for a cup of mediocre coffee?

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You'd of thought they would have learned their lesson from Krispy Kream.

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Buy Folgers. Short Charbucks.

Making your own daily will leave the price of a mortgage payment in your checkbook yearly.

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I love coffee, but stirring all the other s*** in it makes it gross.......$5.00 coffee...Never..

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Drink gasoline. It is cheaper. Probably tastes better.

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Let's see here, from my calcualtions, one gallon of starbucks coffee cost around $40-50(could be more or less).

Sure glad our cars don't run on coffee....

Never drank coffee and would never go to starbucks if I did.

Billy Goats by my work is much cheaper and much better from what I hear anyway.

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they should lower their prices before it is tooo late

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Anyone who would prefer a latte mocha creme cafe with a splash & cinnamon t5o a nice cold beer is Un American!

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Starbucks, hmm, overpriced crappy coffee, served by high school and college yahoos.

Maybe it is time these save the earth, free the penguins, eat tofu idiots realize the $5 a cup for coffee is nutz, and eventually you will lose your market share.

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I guess it's time for Starbucks 'greedy' CEO's to wake-up and smell the coffee!!! Greed seems to have interfered with Starbucks downfall and perhaps its end. Starbucks should have stayed with its 'original formulae' of the coffee brewing business and NOT 'fancy' pastries, sandwiches and other food related items.

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I can live without a $4 cup of coffee.

I refuse to live without my cardboard box.

Hold the phone folks, the repo guy is here to repossess my cardboard box.

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the country runs on dunkins

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Sorry but Starbucks is pricing it's self out of business. It has nothing to do with the housing problems.

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Folks there's a corollary here.

When gas hits $3.00 a gallon people stop buying $3.00 coffee.

Get it? Blame Bush and the oil club for having to slug down regular ole Maxwell house.

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If I could do anything to bring starbucks down faster, I would do it. I have never had any of their coffee because I'm not stupid enough to pay $4.00 for a nickels worth of coffee.

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