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alstry (35.70)

Forced Furlough FUs

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April 21, 2009 – Comments (3)

I was travelling home today and met a friend, a PhD level engineer, at the airport who told me that workers at his company, a very large public company are being forced to take two weeks off without pay over the next couple quarters.  This is effectively an 8% paycut.  I am hearing this with greater frequency as of late.  We know about California and the governator's forced furloughs of state workers.

None of these furloughs enter govnernment statistics and from what I can tell......it seems to be becoming more and more widespread as companies try to avoid additional layoffs.

For those people who can't afford a paycut and have little in the way of savings......they face serious financial issues.....my guess is that there may be millions of Americans facing forced furloughs in addition to the millions getting fired.

No wonder credit card defaults are growing parabolicly.  Mortgage defaults continuing to skyrocket.  With 50-75% of the American population living paycheck to paycheck and little in the way of reserves, if this trend keeps growing, we could be facing some serious issues in the not too distant future.

Prepare....Don't Fear.

If any of you Cappers are familiar with forced furloughs....please feel free to contribute.

3 Comments – Post Your Own

#1) On April 21, 2009 at 2:14 AM, alstry (35.70) wrote:

IS KOHN A FU FOOL????

LOS ANGELES (AP) -- Federal Reserve Vice Chairman Donald L. Kohn said steadier consumer spending and home sales, together with favorable earnings results from some banks, may indicate that the U.S. economy is poised to stage a gradual recovery later this year.

The Fed's No. 2 official, delivering the annual Hutchinson lecture at the University of Delaware Monday evening, noted that consumer spending continues to suffer the effects of the poor job market and the sizable losses of equity and housing wealth over the past two years.

But he said consumption appears to have steadied in comparison to the sharp drops seen in the second half of 2008, and declines in sales and construction of single-family homes have abated -- possibly because of low mortgage interest rates.

NEW HOME CONSTRUCTION IS DOWN 75% PEAK....THERE AIN'T MUCH FURTHER TO DROP MR. #2 FED GOVERNOR.....and sales are level because builders are liquidating.

Here is a little reality check for you Mr. #2....from BigBuilderOnline:

Apr. 17--JLS Custom Homes, one of Oregon's largest home builders, said Thursday it will liquidate 70 homes to clear out its inventory as sale prices continue to plummet across the region. But he said the company will not follow other major Oregon builders into Chapter 11 bankruptcy. JLS Custom Homes is the latest in a long line of major home builders pushed into trouble by the bursting housing bubble, tighter mortgage lending and rising unemployment.

THERE JUST AIN'T THAT MANY BUILDERS BUILDING MANY HOMES ANYMORE........

And for consumer spending....what do you think is going to happen when your banking buddies pull credit card lines and more and more people get fired or furloughed  ???????????????????

And this guy is #2?????  How stupid is #3????

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#2) On April 21, 2009 at 8:24 AM, dudemonkey (58.63) wrote:

Is his company hiring?  I would gladly take an 8% pay cut for 2 extra weeks of vacation.

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#3) On April 21, 2009 at 8:46 AM, alstry (35.70) wrote:

That is an extra 4 weeks of vacation, 2 weeks per 2 quarters.  It would be an even better deal for you.

In CA it is two days per month.

Right now, according the the highly repsected John William's ShadowStats......Pre Clinton Unemployment rates are actually about 20%(which approximates my personal estimates approaching it from a different direction)......we are getting very close to GREAT DEPRESSION highs and we are still in the early stages of the downturn.

Seriously Flawed BLS Payroll Reporting • March Payroll Loss Was 750,000 Net of Concurrent Seasonal Factor Bias, 749,000 Net of Reporting Revisions • SGS-Alternate Unemployment Rate at 19.8%

http://www.shadowstats.com/

 

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