I don't get it. All this talk about the recession is over, housing market picked up, Dow pushed over 10,000-what do they mean? Is the Dow really a precursor of things to come? Are better days ahead for us?
I certainly haven't seen things improving in my neighborhood. Restaurants are still quite empty, the department stores (not many left now) are not doing brisk businesses and there are a lot of empty offices. 'For lease' signs are prevalent in front of apartment buildings.
I am suspecting that big companies are reporting good profits from cost cutting - meaning, laying off their employees. They are so keen on boosting their stock prices, they don't mind cutting into their work force (the heart and soul of their products). Maybe fire now and hire back later at lower wage. Somehow, this strategy doesn't sound right to me. Seems to me, this is shortsighted and acting irresponsibly as a corporate citizen. Is profit the only measure of success for a business?
These are all very complicated ?'s that you are posing, MD.. My answer: no idea. Only time will tell. I just hope that very very soon, things get back to hustlin' bustlin' normal so that restaurants are filled, businesses are operating, and people are employed!
ReplyDeleteGuess profit IS the only way to measure success in a capitalistic model. Recession over? Note sure but more incline to say no.... but maybe the worst is over... Bernanke is too optimistic ... guess he is trying to generate confidence - besides it makes him look good too!
ReplyDeleteI am hoping that companies who can afford to keep a few more employees do just that. The collective result may just avert a prolong recession.
ReplyDeleteYes, I hear you! Just signed up for our health benefits for 2010 - employee's share of the premium when up by a little more than 10%. It has been going up every year but not as much as this year. So yeah, this is the less obvious way of cost cutting undertaken by lots of corporations. Frankly it is an indirect "pay cut"? More work less pay... definitely not a booming economy's sitch!
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