Michael Shedlock (a.k.a. Mish) writes in a post that layoff plans are soaring across many sectors of the economy. Not surprisingly the financial sector is leading the way (and is way out in front, thank you) in the proposed cuts.
The job cuts in April were led by Citigroup which announced plans to eliminate 17,000 positions. With 33,789 reductions in April, the financial sector has now announced plans to cut 50,221 jobs so far this year, overtaking the auto industry as the top job reducer.
With the amount of mortgage equity withdrawal tailing off significantly, and with the reduction in the work force (as well as falling worker/consumer confidence that should follow) the GDP should weaken further as consumer spending slows. Consumer spending should lag a bit as it takes a while for consumers and job holders to adjust to less cash and for them to really "tighten up the belt."
Should make for an interesting summer and fall home buying season.
Last 3 posts by Morgan
- Subprime Bananas - June 28th, 2009
- Roubini: No confidence in government exit strategy - June 24th, 2009
- Goldman bonuses largest in firm's 140-year history - June 21st, 2009
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