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According to Mike Maynard writing for marketwatch.com, home depot quarterly sales are down 6.2% with a reported net income of $756 million which is down from $1.09 billion.

Does this mean Home Depot is in trouble? There’s no talk to indicate the possibility that Home Depot might go the way of Circuit City but one wonders which big company will be the next to file Chapter 11 with the ongoing financial crisis and talk about “Great Depression 2″ already coming with a predicted time frame by which it is going to happen.

Marketwatch reports that Home Depot is focused now on controlling expenses and “honing in on their capital”. They are not right now looking to open new stores with sales uncertain given the present economy. Once these companies start talking about honing in on capital and not opening new stores bankruptcy talk cannot be far behind.

According to published reports, Circuit City Stores Inc. has filed for bankruptcy as of Monday November 10th 2008. It seems the retailer and 17 affiliates were forced to file for Chapter 11 protection from creditors who have tightened their credit terms directly as a result of the ongoing credit crisis. The Circuit City Chapter 11 filing was done in Richmond, Virginia where the company is headquartered.

Circuit City’s chief Financial Officer, Bruce Besanko, explained in a statement:

“In large part, a Chapter 11 filing is due to three factors, all of which contributed to a liquidity crisis that prevented the company from completing its turnaround goals outside of formal proceedings: erosion of vendor confidence, decreased liquidity and a global economic crisis.”

Hugh Son and Craig Torres, writing for bloomberg.com, report that AIG has been granted an expanded rescue package.

Back in September the government bailed out AIG rescuing the insurance company from the brink of bankruptcy; but the bailout did not turn things around for AIG. The company continued to suffer losses and have had to turn to the government to ask for additional help.

The expanded rescue package which the government has agreed to is said to be valued at more than $150 billion. For more read AIG Gets Expanded Bailout, Posts $24.5 Billion Loss