This morning there is more news that major corporations are going to lay more people off -- Caterpillar at 20K, Sprint at 8K, and Home Depot at 7K. The calendar flips to another Monday and 15,000 will soon find themselves out of a job.
For all the hubbub about the stimulus package and the great effect it will have on jump starting the economy (because the economy is like a car, right?), it is noteworthy that 2 of the firms, CAT and HD were likely to be benefactors of a construction stimulus. There is overcapacity is both industries, and these announcements give us a sneak peek that the near term outlook doesn't bode well for the overall unemployment rate. While some on TV still ramble on about unemployment topping out at 8 or 9%, I find them to be a little optimistic.
The second half recovery that the optimists seek is now only 5 months and one week from starting. But major companies still continue to lay people off, suggesting to me that the people who are speaking of the recovery are more concerned with keeping people in the market than the actual timing of any recovery.
For all the hubbub about the stimulus package and the great effect it will have on jump starting the economy (because the economy is like a car, right?), it is noteworthy that 2 of the firms, CAT and HD were likely to be benefactors of a construction stimulus. There is overcapacity is both industries, and these announcements give us a sneak peek that the near term outlook doesn't bode well for the overall unemployment rate. While some on TV still ramble on about unemployment topping out at 8 or 9%, I find them to be a little optimistic.
The second half recovery that the optimists seek is now only 5 months and one week from starting. But major companies still continue to lay people off, suggesting to me that the people who are speaking of the recovery are more concerned with keeping people in the market than the actual timing of any recovery.
