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Fears of a Million Layoffs a Month in Corporate America

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posted on Dec, 7 2008 @ 11:24 AM
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Fears of a Million Layoffs a Month in Corporate America


www.guardian.co.uk

As many as a million American jobs could be lost every month by next spring as businesses struggle to raise capital in financial markets consumed by fear, according to a new analysis. November was the worst month in the US labour market since the oil crisis of 1974, as more than 500,000 US workers were laid off, according to official figures released on Friday.

But Graham Turner, of consultancy GFC Economics, says the rising cost of corporate debt is now flashing a red warning signal that far worse is to come over the next few months and job losses are heading for levels last seen in the 1930s Great Depression.

Corporate bond yields have rocketed since the credit crisis began as investors flee risky assets in search of safe havens such as US Treasuries. That effectively means many firms are being forced to pay eye-watering interest rates to borrow funds.

(visit the link for the full news article)



[edit on 7-12-2008 by DimensionalDetective]



posted on Dec, 7 2008 @ 11:24 AM
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Hey, but not to worry! The bankers and CEO's are cashing in on trillions of our tax-dollars and emptying out the treasury as they sail off into the sunset. Look at the bright side, at least a handfull of folks are doing better than ever, and the party never ends for them.

I just find it puzzling, how TPTB think they are going to recover all this trillions in debt through future tax-extortion of the populace, when nobody has a job anymore? How are they going to continue robbing the peons, when they no longer have a job?

www.guardian.co.uk
(visit the link for the full news article)



posted on Dec, 7 2008 @ 11:39 AM
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Hehe Dimension you are funny as hell..no really you are. I personally dont think it will be a million per month but we are going to keep sustaining job losses until one of two things happen. We let all these fools go bankrupt or the banks start doing what they were supposed to do and start putting money in the system. Right now these guys are enjoying hoarding our money to buy up assets for pennies on the dollar. Then when they own all the assets they will start to lend again so the peons will have the money to pay for all the assets they bought for pennies on the dollar. Its robbery and we have seen it before in the 30s.

My deal is well if the government is giving all of this money what is the point to the FED? Arent they supposed to handle all of this so we dont have to? Isnt that why the get hundreds of billions to trillions of dollars a year? What is the point to the FED? Answer there is no point its a way to give up tax dollars that is it. Everything the FED does our government can do without paying billions in interest to them. These criminals in Washington know this but they all get greased. I think I need to be a politician hell with it. If you cant beat them join them and its obvious that after all that has happened people are not going to wake up. Nothing will change.



posted on Dec, 7 2008 @ 11:47 AM
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Geez, I thought we were paying all these killer high executives the big bucks cuz they were so talented.

Maybe we need to pay them even more and get even more talented people running the companies?

Then again, it's all a vicious cycle and they seem to be doing ok with what little - insert sarcasm here - money they have.

Pretty soon congress will give the automakers the bailout money and they can all go home for the weekend happy.
The automakers cuz they got the money.
Congress cuz they look good since they protected us so well.

What a deal....



posted on Dec, 7 2008 @ 12:30 PM
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What has always puzzled me is that all these big firms roll in cash every year when the post their profits, but along comes a slump and not a single one has put money aside for a rainy day, leading to a sudden collapse.

Now, I know that they have shareholders and those guys want a return, but if I was a shareholder (and I am one for a FTSE 100 company), I'd rather take a lower dividend if the company put aside some money for the future.

If I was a CEO or business owner, I'd put say 25% of the company profits aside to act as a reserve every year. It seems clear that not one of these big hitters who needs Government bailouts has done so, nor has any other business for that matter.

That just seems common sense to me. I know it's not the "capitalist" way of doing things, but the survival of your business and the ability to weather storms is much more important than short term goals, surely?

EDIT: What I am trying to say is, had they done the above and saved for a rainy day, then there wouldn't be a "credit crunch" as business wouldn't need an endless supply of credit capital to operate, as they'd have the reserve to fall back on.

[edit on 7/12/08 by stumason]



posted on Dec, 7 2008 @ 12:32 PM
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And of course the gov pie-chart and numbers guys are still skewing the stats:



Grim Job Report 'Not Showing Full Picture'

As bad as the headline numbers in Friday’s employment report were, they still made the job market look better than it really is.

The unemployment rate reached its highest point since 1993, and overall employment fell by more than a half million jobs. Yet that was just the beginning. Thanks to the vagaries of the way that the government’s best-known jobs statistics are calculated, they have overlooked many workers who have been deeply affected by the current recession.

The number of people out of the labor force — meaning that they were neither working nor looking for work and that the government did not consider them unemployed — jumped by 637,000 last month, the Labor Department said. The number of part-time workers who said they wanted full-time work — all counted as fully employed — rose by an additional 621,000. Take these people into account, and the job market may be in its worst condition since the early 1980s. It is still deteriorating rapidly, too.


Full Article:

www.nytimes.com...



[edit on 7-12-2008 by DimensionalDetective]



posted on Dec, 7 2008 @ 12:48 PM
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I have said for many years that there are a lot of useless jobs out there.

If you don't go home sweating and weak you are replaceable. I can see the fat being trimmed out of many big businesses. That is good too.


Oh no they can only afford 2 vacation homes now.



posted on Dec, 7 2008 @ 01:20 PM
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I think my job security is pretty tight. I work at McDonald's

I definitely go home sweating and weak.

However, this may be bad news for me when I finish my degree.



posted on Dec, 7 2008 @ 03:51 PM
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Originally posted by stumason

If I was a CEO or business owner,
I'd put say 25% of the company profits aside to act as a reserve every year.
It seems clear that not one of these big hitters who needs Government bailouts has done so, nor has any other business for that matter.



i think that these corps & businesses (large or small)
DID do as you say.... they put away up to that 25% of their profits...

but - you know what.
those set aside profits money were Invested in the Stock-Market !
And we all know the DOW has went down 40-50% in the last year.


, Is It "Your Contention", that putting the company Profits into their Treasury, and then investing into stocks ->instead of US Treasuries



posted on Dec, 7 2008 @ 04:10 PM
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reply to post by mybigunit
 


Is one problem with that, by the time that the greedy corrupted banks decide to start the debt go around again to keep Americans spending it may be too late.

The only way that they will be "putting money into the system" is by lending money and giving away credit.

That is not cash that is a promise of a pay out later.

And that is what got America into debt at least the America worker.

Now with no jobs and massive loses of job, how the consumers and indebted Americans are going to pay for more debt?

Only job creation can help us now and remember that as consumers with no industrial base the only ones that will be making profits is the foreign nations that sell their goods to us so much for another mammoth bail out package for the consumers of America, while reviving Chinas economy.

America is in deep trouble and we need a miracle.



posted on Dec, 7 2008 @ 04:14 PM
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I would say it is going to get worst, heck even Obama said that today on "Meet the Press" and I figure by the middle of 2009 the spending on infrastucture will kick in and stabilize the employment situation. Which will probably be between 1/2 and 1 million a month. Still, not a good situation, I hope that my job last that long!



posted on Dec, 7 2008 @ 05:05 PM
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Man - lot's of great stuff here;


Desert Dawg
Geez, I thought we were paying all these killer high executives the big bucks cuz they were so talented.


Lol!

Talented? That little myth goes down with the "Easter Bunny" and "Anyone citizen can become President."

Think about it. At the real 'decision maker' level it's a social 'club.' By definition it's exclusive and limited to the well-connected. The only people they allow 'in' are there own kind. Is it really possible (as they seem to think) that they have a monopoly on the 'talent' required to administer a business?

Some of them have talent, but it doesn't seem they have applied it to sustainable and honorable commerce.


stumason
... I'd rather take a lower dividend if the company put aside some money for the future.

If I was a CEO or business owner, I'd put say 25% of the company profits aside to act as a reserve every year....


Stu, excellent idea. If you get there, I will be glad to invest in your business. But 'saving' money for others doesn't seem to be the general inclination of this crowd. Cut's down on the 'perks' ya know?

[quote[] ... St Udio
I think that these corps & businesses (large or small)
DID do as you say.... they put away up to that 25% of their profits...

They didn't 'put them away' .. they 'invested it' into the same gambling scheme we all are led to believe is 'saving'. Saving is retaining the funds for immediate liquidity. Problem is there's no profit in that - or at least - it seems t have been engineered that way.

marg6043

- Amen.

mel1962,

I have yet to hear anything but vague generalities and platitudes from the politicians and their ilk.



posted on Dec, 7 2008 @ 09:16 PM
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Yeah, I'm feeling the damage too.

I'm finishing up my last contract... and for the first time in a long while, I've got nothing lined up after it.


... so, in a short while, you will be talking with one unemployed robotics tech.
... just freaking wonderful...

Why did it have to be the manufacturing sector?


Canada lost 70,000 jobs last month. When you compare that to the respective country sizes, we lost a larger percentage of our workforce than the US did.

Now that parliament is suspended due to Dion being a childish moron, it's not going to get any better.

So don't bother escaping to Canada for jobs, we're in the same boat.



posted on Jan, 1 2009 @ 04:00 PM
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reply to post by DimensionalDetective
 


Layoffs, at best, produce only short-term improvement. At the risk of creating severe damage. Like a crash, starvation diet - the health risks outweigh the short-term gain. Instead, businesses need to change what they do to be more competitive - and that involves applying innovation - rather than focusing on cost cutting. Read more at www.ThePhoenixPrinciple.com...



posted on Jan, 1 2009 @ 04:15 PM
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Well I'm sure that this turning of events is just going to increase America's trend for brotherly love exponentially





posted on Jan, 1 2009 @ 06:11 PM
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reply to post by johnsky
 


So far, in the Information Security industry, things are going strong.

Something I learned during my own personal economic crisis from 2001-2003, is that not only do you have to own your own business, you have to own and run a couple of them. It's the old diversification concept.

I'm just glad that I started 4 companies since 2003, because only one of them is experiencing issues, and it would have really sucked right now if I didn't start the others.



posted on Jan, 1 2009 @ 06:20 PM
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reply to post by DaedalusLXIX
 


I am sorry


I worked McDs a couple of times and were about the most unpleasant, thankless jobs that I ever had.

I would be utterly exhausted at 5 bucks an hour and then get chastised because my lunch was 35 minutes instead of 35. And I was exhausted at 17 years old.

Wish you the best of luck on getting your degree.



posted on Jan, 1 2009 @ 06:22 PM
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My job takes me into people's homes. I have met quite a few layoffs recently. Especially in the automotive field.Adn these folks reported to me that they know of others getting the ax soon.

Whether someone thinks the people or positions are useless or not, employing people are important. And they still pay taxes, and earn income to buy homes. When those lines dry up, then everyone starts feeling the pinch.



posted on Jan, 1 2009 @ 07:30 PM
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What I find sickeningly hilarious is that they managed to change the backruptcy laws just a few months before the crap hit the fan. Most that have lost jobs are going to be indebted even if they do file for bankruptcy to the credit card companies. They have created by tanking the market and blowing the job market out of the water a large class of folks who willnever agin quailfy for any credit in the far future. That in itself has doomed many to be peons for ever.

Zindo



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