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alstry (35.70)

How about 50% of workers let go!!!!!

Recs

9

May 05, 2008 – Comments (4)

First Marblehead Cuts Work Force In Half

May 5, 2008

SAN FRANCISCO (MarketWatch) -- First Marblehead Corp. announced plans to cut its annual operating costs by $200 million, with 500 jobs already cut by the ailing student lender as it deals with the turbulent market. The move, which affected half of the company's work force, come in the wake of last month's bankruptcy filing by Education Resources Institute Inc., First Marblehead's third-party provider of borrower default guarantees for private student loans since 2001 and guarantor of loans held by The National Collegiate Student Loan Trusts.

Am I going crazy or what?

Here is the headline from MarketWatch tonight:

 

Keep the champagne on ice, economists warn

Recession threat still lingers despite some positive data

WASHINGTON (MarketWatch) -- Keep the champagne on ice and the party hats under wraps because celebrations that the economy has avoided a recession or serious downturn are premature, many economists say.

Recession threat still lingers?????????????????????  What kind of nonsense statement is that? 

Since when did the recession threat recede????  Companies are firing workers at ever increasing rates.  The Tropicana Casino, supposedly a recession proof business, is about to go bankrupt tonight.  If the recession proof businesses are going bankrupt, can you imagine what is going to happen to businesses vulnerable to recessions?

My friends, the party is just ending....and the hangover is about to start!!!!

4 Comments – Post Your Own

#1) On May 05, 2008 at 8:12 PM, alstry (35.70) wrote:

Here is another 1200!!!!!!

LOS ANGELES (MarketWatch) - Merck & Co. plans to reduce its U.S. work force by 1,200 positions as it deals with unexpected delays in getting approvals for new products, the company said Monday. Report this comment
#2) On May 05, 2008 at 9:30 PM, EScroogeJr (< 20) wrote:

500 jobs and 200 mln bucks? If they payed $400,000 per job, no wonder they figured that's a wee bit too expensive...

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#3) On May 05, 2008 at 9:48 PM, Gtrinvestor (99.88) wrote:

Thanks for ruining my night. 

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#4) On May 06, 2008 at 12:21 AM, alstry (35.70) wrote:

This should make yoiu feel better tomorrow:

U.S. April Business Bankruptcy Filings Rise Almost 50% on Year

By Bill Rochelle and Bob Willis

May 6 (Bloomberg) -- U.S. business bankruptcy filings in April increased 49 percent from a year earlier, the biggest gain so far this year, as the slowing economy prompted more companies to shut down.

Business filings rose to 5,173 during the month, according to statistics compiled from court records by Jupiter eSources LLC in Oklahoma City. Total bankruptcy filings, including those by individuals, were up 31 percent from a year earlier to 93,096, the group said.

Signs of distress, such as bankruptcies and foreclosures, are rising as economic growth has slowed to its weakest pace since the last recession in 2001. The economy lost jobs in April for the fourth month in a row, for a total of 260,000 jobs cuts so far this year.

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