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alstry (35.44)

Nightmare becoming Reality...for the Holiday Season

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November 06, 2008 – Comments (8)

(MarketWatch) -- Dana Holding Corp., the Toledo, Ohio, vehicle-parts supplier, reported a wider third-quarter net loss on 9.4% lower sales and increased a planned 2008 job cut to 5,000 from 3,000.

(Bloomberg) -- Citigroup Inc. and Goldman Sachs Group Inc., faced with a weakening economy and the prospect of mounting losses, began firing workers as part of the firms' plans to cut more than 12,000 jobs, people with knowledge of the matter said.

Glaxo said it will eliminate nearly 1,800 U.S. sales positions, some of which are vacant, and shift some sales representatives to its vaccine unit from its pharmaceutical unit, for a net reduction of about 1,000 employees.

Retailers shutting down and slashing jobs.  Airlines cutting capacity and eliminating positions...especially hard hit are the regional carriers.  Technology sales crashing and businesses cutting back.  All of these people were paying income taxes and social security....no more.  Just in time for the Holidays.

For the past eight years we have been borrowing and spending under this wonderful administration and incompetent Congress. Our economy was one big ponzi scheme and the country is finally waking up to this fact.........and what a BIG fact it is turning out to be!!!!!!!!!

It is now time to set the foundation to restructure our economy....it is basically bankrupt.  Get ready for some draconian measures due in large part  to the past eight years of insane behavior......let's hope that only our economy is impaired and not our freedoms.

If we continue down this same path, it seems clear that we will exceed 10% unemployment in the very near future.  Major important companies around the nation simply can't shut down, scale back, and/or eliminate 10% or more of their respective workforces and it not impact reported data......eventually.

Tomorrow's unemployment data could be shocking!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

8 Comments – Post Your Own

#1) On November 06, 2008 at 7:53 AM, dinodelaurentis (72.54) wrote:

nothing quite like the Holiday Spirit as giving...

pink slips for everybody!

if they wanted to eliminate employment costs, why don't they cut back on managment? by pecentage it's a bigger cut per person, you'd motivate the hell out of remaining managment and create promotion for other office staffers who shine in times of crises. the top 10% costs a lot more than the bottom 10%. why cut back on customer service when you need to retain customers?

but they never do that.

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#2) On November 06, 2008 at 8:36 AM, alstry (35.44) wrote:

Abercrombie same-store sales fall 20%

Gap October same-store sales down 16%

American Eagle Outfitters' October same-store sales off 12%

Talbots Q3 same-store sales for Talbots brand down 13.9%

Dillard's October same-store sales down 8%

Limited Brands October same-store sales off 9% from year ago

J.C. Penny off 13% and Kohl's off 9%

You think any of these guys were discounting in October?  Even Target sales down almost 5%...and they are migrating to groceries as well......just not as quickly or the same percentage as Costco or Walmart.

Think of the impact on jobs, sales tax revenues to already cash strapped municipalities, income taxes ect.......

It is simply amazing how so few really understand the problem and how severe it really is......but I have very little doubt that will change very soon.

In the mean time......add an extra shot to your bloody and give your kids and parents an extra hug. 

 

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#3) On November 06, 2008 at 8:55 AM, alstry (35.44) wrote:

Even the Wealthy are feeling the squeeze:

Saks October same-store sales sink by more than 16%

Chico's FAS same-store sales fall 13.4%

[JWN] Nordstrom October same-store sales down 15.7%

The contraction is everywhere and getting worse.  MUCH WORSE!!!!!    Now get ready for the steady proposals for stimulous....the only problem is who is going to pay for all this stimulating if few are making money???????

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#4) On November 06, 2008 at 10:36 AM, charlesblazer (99.01) wrote:

Last Saturday, the local Coach store was so crowded that they had to start stopping customers at the door.  People waited outside in the cold, forming a line around the building, with a "bouncer" outside, letting people in one by one, only after people inside left.  It wasn't a sale or anything special... just business as usual.

So, at least one faux-luxury retailer seems to be doing okay.

(that's purely anecdotal... I'm sure someone here has real numbers)

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#5) On November 06, 2008 at 1:21 PM, jegr5347 (< 20) wrote:

Ink and printing press spare part related companies will be the source of the next boom.....for all that money that will get printed.

I wonder if they outsource that.

 

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#6) On November 06, 2008 at 2:54 PM, columbia1 wrote:

Alstry, I'll take you up on that bet, with Mohawk, it is a long shot, but you never know, LVS, Las Vegas sands.

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#7) On November 06, 2008 at 3:41 PM, alstry (35.44) wrote:

You can have LVS but you get today's pricing.

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#8) On November 06, 2008 at 4:10 PM, columbia1 wrote:

Alstry, I put both of them, thumbs down in my portfolio today. Since CAPS is having trouble processing picks, we will have to rely on tomorrow's pricing for a starting point.

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