Why 30% Unemployment......Simple....is the FU virus Fools
May 06, 2009
– Comments (8)
We have a very serious pandemic....and its not H1N1 virus.....it is the FU virus!!!!!!!!!!
Right now we are around 16.2% un/under employment.....
We are seeing company after company report REVENUES DOWN 20%....30%.....40% AND MORE.....
R.R. Donnelley profit down 92% on charges, slower demand
The Chicago-based commercial printer said first-quarter net earnings of $13.9 million, or 7 cents a share, down from $182.5 million, or 85 cents, earned a year ago when a federal tax settlement boosted its profit. Sales for the quarter fell 18% to $2.5 billion.
With profits down 92% and sales down 18%.......clearly cutting employees is a likely outcome to bring business expenses into balance with sales. This is happening in industry after industry....
New Home Construction is DOWN over 70%.......Autos DOWN over 50%.......and many many industries are down 10% to 30%........
The effect is finally hitting tax revenues which are now seeing double digit declines all around the nation.........
In addition to firing employees....we are seeing massive wage cuts as well.....but these cuts will not be reflected in unemployment numbers even though they will have a massive impact on spending and revenues.
How long can the consumer hold out???? Until their savings and borrowing capacity runs out.....for many, we are reaching the end of the line after a long struggle with the FU virus.
Soon we are likely to shut 5000 to 7000 auto dealerships to compensate for lower auto sales. The impact will be enormous......no matter how many windmills we stick in the ground.
As we move into the summer.....it seems like a no brainer that unemployment will top 20%.....the RR Donnelley release above butresses the projection and adding a new industry....printing.... to autos, construction, airlines, hotels, retail, government, healthcare, technology and many others getting sick from the FU virus.
RSS Headlines
Fool UK