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alstry (< 20)

Inflation and Recession-What is the solution?



May 30, 2008 – Comments (5)

Wages falling for many.

Gas at $4.00+ per gallon.  Dow raising the price of products 20% on Monday. 

Debt at record levels. Market pricing in interest rate increases.

Many industries slowing production and laying off hundreds of thousands of workers.

Foreclosures and Commercial RE defaults rising to record levels.

Soros says this is worst recession in our lifetime.

Head of FDIC worried about bank failures.

Stagant/falling wages with skyrocketing inflation coupled with a sharply slowing do we fix this one?



5 Comments – Post Your Own

#1) On May 30, 2008 at 7:15 AM, alstry (< 20) wrote:

PRINCETON, N.J., May 30, 2008 /PRNewswire-FirstCall via COMTEX/ -- Pharmacopeia  an innovator in the discovery and development of novel small molecule therapeutics, announced today that it is implementing the next step in its ongoing effort to focus its resources on the company's clinical and later-stage discovery programs. This effort includes an immediate workforce reduction of approximately 15 percent through attrition and termination of positions

Although this is a small pharma company, I have been noticing an increasing trend of layoffs of 10% or more of workforces.

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#2) On May 30, 2008 at 7:39 AM, alstry (< 20) wrote:

Is this a worldwide trend?????

Some MarketWatch headlines this morning

As British consumers brace for a sharp downturn, confidence in the economy hits its lowest level in more than 17 years.

Grim outlook in Japan
Economic data show household spending down, weakening industrial production and rising unemployment.

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#3) On May 30, 2008 at 7:43 AM, alstry (< 20) wrote:

How bad will it get for the Airline Industry again????

 • Some carriers to taxi toward Chapter 11 this summer? (24/7 Wall St.)

Airlines have quickly moved to two new strategies. One is very public and involves the cutting of routes and laying off of tens of thousand of employees.

The other planning goes on behind closed doors. This work is based on the idea that several carriers will have to go into Chapter 11. Each needs liabilities to greatly outweigh assets to make the move, but requires enough cash on the balance sheet to get through a restructuring.


LONDON (MarketWatch) - Silverjet Plc, the loss-making U.K. business-class airline, on Friday became the latest casualty of record-high fuel prices, grounding it flights after it ran out of cash.Silverjet (UK:SIL: news, chart, profile) , which flew from London to New York and London to Dubai, said it made the decision after it failed to get emergency funding from investment group Viceroy Holdings. Its last flight left Dubai Friday morning.     Report this comment
#4) On May 30, 2008 at 7:48 AM, alstry (< 20) wrote:

How many industries in a DEPRESSION???

I am not sure how to define one but these would be very good candidates:



Residential Housing


Any guesses what % of GDP just the above represent?  What will the spillover effect be?


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#5) On May 30, 2008 at 8:39 AM, alstry (< 20) wrote:

To the previous list of industries in a DEPRESSION, add:

New Commercial Development


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