On The Economy

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.

I know a guy who sells used corporate jets for a living. He’s today’s child molester, right?

“ABC News has learned that Monday officials of the Obama administration called Citigroup about the company’s new $50 million corporate jet and told execs to “fix it.””

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.

3 thoughts on “On The Economy”

  1. Perhaps if the media stopped the incessant doom and gloom, the hysteria would slow down. I firmly believe many companies are laying off because they can and it tends to drive the stock up. For instance, when it was reported that Macy’s was laying off 7,000 people I went to their website to read the press release. First, they were laying off many many seasonal employees that they lay off every year. Second, they never said 7,000 layoffs. They said 7,000 job cuts and even admitted in the release that many of these were jobs that were currently unfilled. Doubtless the economy is bad now, but just like the incredible rise in gas prices over the summer, the MEDIA is making the problem worse than it really is.

  2. There is definitely lots of guilt being thrown around. People who have means are scared to look profligate in public. That trickles down too.

  3. Ouch! I’ve been downgraded further it appears. First drug pusher and now child molester… I hope the coming weeks see some type of change in the other direction. 😉

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