The Link: LINK

The Story: This is a very well written article about the far reaching effects of Circuit City filing for bankruptcy protection and announcing it will liquidate.

The Analysis: It’s difficult to fully understand the extent of the Circuit City pain.  For instance, those 40,000 workers that have lost their job will spend meaningfully less money in their communities than when they were employed.  They’ll be more cost conscious of their grocery bill (Wal-Mart over Ukrops).  They’ll wait to take a vacation, or buy a new car.  They certainly won’t be buying a new house anytime soon (I would guess).  So yes, the CC suppliers, newspapers, etc. will certainly feel a modicum of pain.  But the ancillary businesses that served their employee base will suffer just as much.  They may not be able to pin it directly to this bankruptcy or that one, but they will certainly feel the effects in their revenues.