The 99ers are coming off the unemployment rolls by the millions. What companies/industries will be impacted the most by the loss of those billions of dollars. I have heard that those dollars have a multiplier of seven. Who will get hurt the most?
Hedge Funds. If you know the 6 bases taught by the Wharton School of Bad Business, you know that pushing buttons and paper generates a near-term windfall that evaporates into just a "fall" after surplus momentum catches up and hands you the tab for your folly. Controls- in the hands of do-nothings... does nothing. Underwriting- while the car is careening over a cliff is futile. Financing- based on the old cash flow while selling off the assets... creates terminality. Management- has nothing to do with numbers and spreadsheets. Operations- work best when your employee can buy what you make in his backyard. Marketing- the same old "trust" in a "bust" is lust-gone-wrong.
Last Edit: Dec 30, 2010 11:27:23 GMT -5 by vl - Back to Top
As people fall off social support programs, bad things happen. This is especially true when there does not appear to be opportunities available. Some people do things that they would not have considered doing when they were working. Prostitution, shoplifting, burglaries, alcohol consumption, all go up along with more serious crimes. Not everybody becomes a criminal, most don't, but you'll notice the increase. The trend will continue down because we are still exporting more jobs than we are creating. Most of the more honest folks will agree to work for less than the prevailing rate for that position. They have no choice because we don't have much new job creation. So you land up with lower prevailing rates. Companies in the service sector, maids, landscapers, painters, get displaced by unlicensed independents. Getting your house painted becomes cheaper. All of these downward pressure in wages puts pressure on all retailers, including essentials.