Getting It From BOTH Ends
You read Alstrynomics blogging about companies laying off more than 10% of their total workforce, you read my blogging about paycuts.....now how about both at the same time at the same company......
Teradyne also announced that in the first quarter it will be reducing its worldwide staff by about 14% and implementing a 10% broad-based temporary pay cut.
I was out tonight with a close buddy and our two sons, after an autographing event we took the kids for dinner......my buddy is the owner of a very successful transportion companywho incidently is a avid reader and believer in Alstrynomics.
Over the years, this person and I have been through a lot, and if you can believe it, he sometimes accuses me of being a bit over the top. My counsel to him over the years, when it comes to running his business has been to focus on the fundementals of the business and simply keep my blogging in the back of his mind for reference.
Being an extremely well managed business and a relatively small fish in a huge lake, his company has been able to steadily grow for the past ten years. I have to say, from a mental standpoint, my friend is about as tough as they come. He focuses on the fundementals and has been able to overcome obstacles that few could have met and pushed aside.
Up until tonight, his business has been relatively immune to the downturn......tonight, for the first time, I could sense that he is beginning to feel it. If it has gotten to my buddy, I now know the problems are really really deep.
My friends, very very soon we will all have to start making some pretty big sacrifices. Soon we may only get mail five days a week instead of six. City services we take for granted may be no more. Those that thought they could retire may not be able to and may not be able to continue employment.
Make fun of Alstrynomics all you want....quite frankly I find it rather amusing as I have yet to find a worthy advesary providing a supportable alternative perspective.
Sure gold may go up or gold may go down, but if you think real estate prices crashing, rents imploding, wages being cut at many levels, and commodity prices falling substantially off their highs is price inflation, I am not sure what you would call deflation. In many cases, prices have fallen further and faster than they did in The Great Depression.
If Alstrynomics projections are right, you may want to start preparing for The Greatest Depression.