Thread: More Job Cuts

DMA wrote:

Bankrupt Winn-Dixie to Cut 22,000 Jobs

Ford Cuts Yearly Outlook, Plans New Cuts

Remember all that M&A activity this year? Question is when that that reflect in the job reports.

U.S. car makers will go the way of the U.S. bike makers - bye bye.

All this is to me is a chain reaction of vehicle companies selling vehicles on credit and getting hooked. Like I have said before you can not sell vehicles to the little guy when he doesn't make enough to pay for them. Three to four years ago many with high debt just bought by refinancing when they could not afford the vehicle they already had. This same thing is going to happen in real estate as interest goes up the less buying power the consumer has and in a few years real estate will be cheaper and many loans with variable interest will be jacked up and unafforable as many will not be able to make payments. An appreciating asset will then be depreciating and very hard to hold onto regardless of how many people there isin the market.

On a global scale the U.S. can not compete.

Wages/benefits/perks.

I enjoyed your insight Cowboy. Good post.

Here's the pattern:

Poorly run and unprofitable airlines about to go belly-up. What happens? The gov't bails them out with our money, so they can operate a little while longer - while still losing money.

Poorly run airline has an even more poorly run pension plan and cannot guarantee payments. What happens? The gov't bails them out with our money.

The same will happen with consumer debt... :@

What irks me is the top executive of these companies make these big fat pay packages for running a company and they are cutting 22K of their workers because they are not doing their job because they are not keeping competitive - which is their job. Yet they will get a juicy bonus for making the decision to axe their workers.

I think it is rotten a company announces job cuts and their stock price goes up a majority of the time.

The ole mighty bottom line at work here.

I guess I should not get started on this :shock:. It really makes me mad. (you can tell by the massive run on sentences). :shock:


BTW: The Toy R UsCEO just got a 46M bonus for running that one into the ground. Was hired to move it into the next century. Got his clock cleaned my Walmart. IMHO.

I don't blame CEO's for taking the money. The boards that hire them and compensate them in this fashion are the ones to hold responsible for this practice (much like voters must be held accountable for the idiots that they elect - more on that further down).

CEO's for underperforming companies raking in the dough are no different than hedgefund managers running underperforming funds raking in the dough. Money makes the world go 'round, and there are overpaid / overhyped people in all walks of life. We don't have to be thrilled about it, but griping about it won't change the reality that we face.

I'm much more irate about politicians claiming to represent us... since they have cushy jobs, make six-figure salaries, and hold onto their jobs by spending as much of our money as possible on their respective districts/states. Must be some gig (and they don't even read the legislation or vote part of the time!). :@

Oh oh we are getting each other worked up.

Updated on Ford:

Ford Cutting 1,700 Salaried PositionsAP

They announced this the same time they announced they are going miss numbers for the qtr and yr. To try to keep the stock price proped up. Dad got the pink slip so the stock price would not collapse.

Another U.S. main stay is going to be dead soon - will be a slow death but they can not compete. January 2006 China will be able to import cars (as it stands now). :?

Winn-Dixie to Close 35 Pct. of Its Stores

DMA wrote:

U.S. car makers will go the way of the U.S. bike makers

Harley-Davidson has done extremely well in the last 20 years.
Of course, "Ronaldus Maximus" had to help'ema littleback in 1983. I agree with the point that you are making, but motorcycles has one example.

On 2nd thought, you said "bike". If you meant bicycles, you're right. Huffy is an example of American factory closing and being shippd in China.

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Greg wrote:

Harley-Davidson has done extremely well in the last 20 years.
Of course, "Ronaldus Maximus" had to help'ema littleback in 1983. I agree with the point that you are making, but motorcycles has one example.

On 2nd thought, you said "bike". If you meant bicycles, you're right. Huffy is an example of American factory closing and being shippd in China.

Welcome to the board Greg, nice to have ya....................back.