I know a guy who sells used corporate jets for a living. He’s today’s child molester, right?
I’m not saying Citibank should have their Dassault Falcon 7X. I’m saying there are lots of mixed signals in the economy and this is one of them.
A friend was let go today from a local radio station. It was a bloodbath with longtime employees chopped.
He says the station was cash flow positive in its day-to-day operations. I bet it was. But his company has $717 million in debt. There’s nowhere near enough cash flow to pay that off.
Who is the idiot who lent them that money?
Don’t complain there’s a lack of credit. There was too damned much credit. This is like a crack addict complaining when supplies get tight.
So, my friend’s now unemployed. He now will spend less. The rest of the economy will suffer. Unemployment is cascading.
Can the nation or the world recover as employees are being fired en mass? I don’t think so.
I am sad for my friend. I am sad for my friends.