Use access key #2 to skip to page content.

alstry (< 20)

More Layoff Monday!!!!!!!



January 26, 2009 – Comments (3)

Sprint Nextel expands employee reductions to 8,000 in latest belt-tightening

[CAT] Caterpillar says initiated actions to remove 20,000 workers (20% of workforce)

Philips to cut 6,000 jobs after quarterly loss of 1.47B euros

Wow...we are just starting out the week and we are over 30K with only three companies.  20% of Caterpiller's entire workforce.  And the current mainstream unemployment projections are still at 8-9%.  Alstrynomics is at 30% with a bias to increasing that number if current trends continue.

My friends, the opportunities to score points are endless. 

On a side note, I read something yesterday that may propel me to become a gold bull.  No decisions yet, but definitely looking at the situation from a different angle.

3 Comments – Post Your Own

#1) On January 26, 2009 at 8:49 AM, alstry (< 20) wrote:

Home Depot to cut 7,000 jobs, or 2% of workforce

That takes us over 40K today.....actually this morning.

Report this comment
#2) On January 26, 2009 at 9:19 AM, alstry (< 20) wrote:

Another 20K....bringing us to over 60K today.

Pfizer, the world’s biggest drugmaker, will acquire its smaller peer in a cash-and-stock transaction valued at $50.19 a share, 29 percent more than the closing price of $38.83 on Jan. 22, the day before talks were reported, the companies said today in a statement. Pfizer also will halve its quarterly dividend to 16 cents a share, fire 15 percent of the combined company’s workforce, or about 19,000 people, and close five factories.

The largest drug company in the world firing 15% of ENTIRE workforce.  Caterpiller 20% of ENTIRE workforce.

The beat goes on and on......very soon I might have to revise my unemployment projection to a number higher than 30%.  Clearly we are on a path leading us to a point MUCH WORSE than THE GREAT DEPRESSION.

Report this comment
#3) On January 26, 2009 at 9:20 AM, amassafortune (29.28) wrote:

Much of this bad news was anticipated. The S&P continues to bounce in the 820-860 range and is 47.6% lower than its 10/9/07 all-time closing high of 1,565. The key question for investors remains whether the huge drop we've seen has discounted enough of the expected bad news. 

Certainly, the market has not factored in a 25-30% unemployment rate. If the market believes at some point that we have only seen fewer than half of the job losses to come, the second shoe will drop. 

I continue to think the S&P will hit its ultimate low in this cycle between 500-680, but it will be a short-lived, screeming buy point and not a protracted trading range. I will also say Alstry is more likely to be correct than the poster who thinks we will be at 900 by the end of this week due to fund manager purchases.

The only way I see Alstry's prediction coming true is if there is an unforeseen political event or natural disaster as there was with the dustbowl of the 1930's. Without such an event, this downturn will remain, by a substantial margin, the second-worst financial cycle of the past 100 years. But who knows, the Ebola virus jumped from swine to humans for the first time recently and the news could not surpass speculation that the first family would end up with a Labradoodle.  

Report this comment

Featured Broker Partners