Alstry's Accellerating Deceleration
Broadcom cuts view, citing recent 'cancellations'
The salient word is recent. Broadcom is a technology company....and it is not just Broadcom only....it is company after company and industry after industry.
Basically, the rate of slowing is speeding up. It is spreading wider as well as deeper. This was inevitable as access to money dwindled, fewer could spend, and a concept I have alluded to for some time. I call it concentric contraction.....or a contraction to a center point. It is a theory I developed about three years ago that we are now seeing tangibly day after day with enhanced clarity.
Each time a company shuts down a plant....it likely causes its suppliers to cut back as well. We are seeing hundreds of plants shutting down everyday at ever increasing rates. Soon much will slow to a trickle.....especially as we close out the year.
We are already at almost 7% reported unemployment that that doesn't count the tens of thousands of reductions we have read about in recent weeks and the planned reductions that we know are around the corner. Now businesses are cancelling orders....others are declaring bankruptcy in an attempt to reorganize, and more are shutting down completely. Expect many more layoffs ahead as ring in the new year.
It seems we are approaching the top of the roller coaster......hands up everyone.