Greenspan better keep his finger his close to the interest-rate-cutting button. Noteworthy article in today's WSJ, "Broad Round of Job Cuts Expected in U.S." Excerpts:
"That hot U.S. job market? It's getting cooler by the minute. ... Nearly a dozen big firms have announced staff reductions in the past week, some of them slashing as much as a quarter of their work force.... This round of downsizing is turning out to be suprisingly nondiscriminatory, affecting companies ranging from banks to exercise equipment. ... The reason: fears that the global economic downturn won't reverse itself anytime soon. ... There are also signs that companies are becoming quicker on the trigger, announcing job cuts even at the earliest signs of weakening results. Raytheon is cutting its staff even as it forecasts earnings growth of 10% to 12% over the next four years, a lower rate than analysts had expected. 'The concept that you would lay off people in *anticipation* of failure of future profits is still a fairly recent one,' says Ms. [Diane] Swonk, the [BankOne] economist."
Carl Remick