As published on bloomberg.com, on 3/10/2009, we are faced with a national economic freefall that is pulling the rest of the world in with us. Many powerful and previously successful companies who have been leaders in their respective industries are coming in to very serious harsh realities this year.
To quote the article, Warren Buffett, says the “economy has fallen off a cliff”. The effects of this freefall are being seen in the stock market where the major indicies have seen drops of 50% in some instance of their value 18 months ago.
The trickle down effect of this is that the things that were once held for their value are no longer worth nearly as much as they once were and that leaves less money to be borrowed against and less money to be spent in the economy. Couple that with fear and you complete the circle in to this downward spiral that we’re currently in.
A drop in the projected income of any company leads to the tightening of belts and some rough choices and that’s why we’re here now. States are reporting record numbers of people claiming unemployment and as the weeks roll on more and more large companies are reporting a “workforce reduction” as a means of staying in the black (or keeping the bottom line a little less red).
This isn’t the first time this has occurred in this country and it won’t be the last. We intend to provide our readers with the best resources and up-to-date news on this and other aspects of the economy that continue to affect those who have been and those who may soon be downsized.
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