There is probably no better sign that we are in a serious recession than seeing dollar store profits skyrocketing.

It was announced today that Family Dollar, a franchise founded in 1958 where most items cost less than $2, smashed analysts’ expectations and came out with its highest profiting quarter in over 8 years.

Obviously the reason for this is because of consumers feeling the pinch in high gas prices and grocery store purchases. When you’re strapped for cash, the dollar store is always your best friend. They even have their own NASCAR.

I’m not sure how many of our readers frequent their local dollar stores, but as scummy and chaotic as they appear, they are definitely a lot of fun. You really have no idea what you’ll find in there. It’s kind of like going to a great flea market, where all the stuff is new and usually costs much less. I really wouldn’t be surprised if someone told me they found 24 loaded handguns in a 99 cent bundle package in Aisle 4.

Family Dollar isn’t some punk on the New York Stock Exchange either. This bad ass mofo laughs and then slaps anyone who thinks its stock price is worth $1. Try $22.81 per share as of this morning, son! On the news that the Dollar boys killed estimates, the stock jumped 12%.

I would be on the lookout for trends like this continue. As Starbucks begins closing 600 stores and cutting 12,000 jobs, more high-end daily luxuries will no longer fit into the average consumer’s budget. Wasn’t Starbucks saying not too long ago the reason it was losing business was because customers were frustrated that lines were too long? Turns out that was a load of crap. Maybe they should close that Starbucks that right across the street from another Starbucks and put a Family Dollar there instead.

Bloomberg: Family Dollar Gains Most Since 2000 as Profit Beats Estimates, July 2, 2008

MarketWatch: Starbucks to Close 600 Stores, July 1, 2008