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alstry (35.42)

The 10% Train Getting Longer and Longer

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December 11, 2008 – Comments (12)

More and more companies are announcing layoffs of 10% or more of the ENTIRE workforce.  Right now we are at about 7% unemployment..........and these layoffs are not counted in the figures....you do the math....sure umeployment will only get to 8 or 9% like the economists are telling you.

NEW YORK (MarketWatch) -- Choked-up credit markets have wreaked havoc for construction businesses, shrinking sales and forcing layoffs and plant shutdowns at suppliers Stanley Works and Cummins Engine Co."

While these actions are difficult ... we feel it is imperative to move decisively to manage through the steep global economic decline we are currently experiencing," said Stanley Chairman and Chief Executive John Lundgren in a Thursday statement.

The New Britain, Conn., toolmaker  said it would lay off 2,000 people, or about 10% of its workforce, because of the "rapidly deteriorating business conditions" in its construction and industrial segments. The move is expected to save the company about $170 million in costs next year.

Cummins also announced layoffs today.....but only about 4% if its workforce."

Our engine and components segments are seeing the most significant declines with revenues for the fourth quarter down 15% compared to what we anticipated in our previous guidance at the end of October," said Tim Solso, chairman and CEO.

"We do not expect market conditions to improve significantly in the immediate future," he said.

Nor does Alstry....but as soon as I do...you guys will be one of the first to know.

12 Comments – Post Your Own

#1) On December 11, 2008 at 12:03 PM, alstry (35.42) wrote:

[COF] Capital One sees unemployment at 7% by mid 2009

Now that is sticking your neck out!!!!!!!

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#2) On December 11, 2008 at 12:36 PM, goldminingXpert (29.46) wrote:

unemployment is going to 13% by 2010. There, GMX is a bold guy. No weak predictions from me.

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#3) On December 11, 2008 at 12:40 PM, JeanDavid (79.92) wrote:

I read that if you include those who are too discouraged to look for work, and those forced to work part-time when they wish to work full time, that the unemployment is over 12% right now.

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#4) On December 11, 2008 at 1:30 PM, HansHauge (32.18) wrote:

Yeah, hard to put a value on under-employment.

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#5) On December 11, 2008 at 2:20 PM, DemonDoug (73.55) wrote:

Capital One sees unemployment at 7% by mid 2009

Now that is sticking your neck out!!!!!!!

Like sticking your neck out about 5 inches away from the back wall of the cave you are currently hunkering down in.

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#6) On December 11, 2008 at 2:48 PM, alstry (35.42) wrote:

Here is why Alstry is so confident of his 30% unemployment number.  Right now, many spouses and elderly are not counted as unemployed.  We went through a period where many husbands or wives stayed home while the other worked.

Now, one losing his/her job or getting a pay reduction can result in two needing to find additional employment.

Again, it is a snowball effect....and the snowball is getting bigger and bigger.  The United States hasn't delevered like this since the 1870's.....most of you fools weren't alive back then.....but since Alstry is a fictional character....I am giving him the attribute of being 150 years old.

In the 1870s...over 80% of the family farms were foreclosed upon...back then, we were an agrarian society so 80% was a meaningful percentage of the population.  That was the best perspective I can find the current period...is it the same....not really...but perspective nonetheless.

 This train is just leaving the station....all aboard....choo.....choo....

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#7) On December 11, 2008 at 2:53 PM, columbia1 wrote:

Too bad government has not reduced its work force by 10%. It just seems like government will just keep growing, while the private sector contracts. Fewer and fewer individuals are paying taxes and government just keeps increasing its spending, eventually the teeter-totter is going to break!!

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#8) On December 11, 2008 at 3:57 PM, engstocker (< 20) wrote:

Even if all employeres in the US reduce there workforce by 10% would we not only be at 10% unemployment. I just can't see 30% unemployment.

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#9) On December 11, 2008 at 4:02 PM, alstry (35.42) wrote:

eng,

There are lots of things that I can see that you can't.  It's OK.  That is what makes life so interesting.  We all see things differently. 

Just because I can see it doesn't mean that I am right.  It is just that I am usually right:)

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#10) On December 11, 2008 at 4:16 PM, goldminingXpert (29.46) wrote:

if we repeat the GD, we will certainly hit 15% and probably 20%. 30 might be a stretch, but as I said above, 13 is absolute bare minimum.

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#11) On December 11, 2008 at 4:51 PM, jegr5347 (< 20) wrote:

Whoa Nelly!!! Choooo Choooo! 

I wonder if this is in the 10% bucket. That means BOFA has 350,000 employees. But wait a minute, BOFA and Countrywide had a combined 260,600 at 12/31/2007. Something does not work here.

Bank of America says to cut up to 35,000 jobs

(Reuters) - Bank of America Corp said on Thursday it plans to cut up to 35,000 jobs over the next three years.

Highlights:

* Says expects to have a final plan early in 2009

* Says reductions are coming from both companies and affect all lines of

business and staff units

* Says reductions to eliminate redundancies due to merger with Merrill Lynch

and reflect current recessionary environment

* Says continues to actively originate loans through all of its credit product

lines

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#12) On December 12, 2008 at 9:03 AM, Mary953 (76.13) wrote:

Your car radio does not light up to give you the time and station that you are listening to. Do you go to the mechanic and get a new radio or start wearing a watch?

You have to get your dog to the vet for shots and an annual check up.  Or you can go to the Humane Shelter fund raiser and pay $10 for the rabies shot.  Will you be seeing the vet for $150?

Time to get your teeth cleaned.  Should I make your 6 month appointment with the dentist?

The little shop on the corner has that new best seller in - full price.  But you  will be at the big discount store tomorrow and they have it for half price. Will you buy from the couple who own the corner store?  Will you wait for tomorrow?

Not unemployeed, not underemployed, but these people are spending 50+ hours a week in the office,      and no one has the money to spare for anything they either don't want or don't have to do.  Even worse, each of these people are supporting an office staff.  They have to at least "make the rent" or they just get more in the red.

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