1) continued business rationalization (cleaning house) and some strong companies showing impressive results in this environment
2) the afterglow of the Obama election not having enough 'oomph' to actually change how Washington works.
For a real feeling of what is going on in corporations around the world regarding job cuts, you have to review the following links from the WSJ:
http://blogs.wsj.com/economics/2008/12/04/fourth- quarter-layoffs-selection-of- job-cuts-by-major-companies/
http://blogs.wsj.com/economics/2009/01/08/first- quarter-layoffs-selection-of- job-cuts-by-major-companies/
http://blogs.wsj.com/
This caught my eye yesterday and it is almost mind numbing the numbers you see listed by company. We hear it daily, but to see it written is an entirely other feeling. Obviously, many businesses got caught being WAY too heavy for far too long. Our company made changes over a year ago, far ahead of this curve that was in many ways predictable, just not the magnitude of how fast.
Speaking of 'how fast', have you noticed how wonderfully 'fast' our government & Congress is going to 'stimulate' the economy? Looks like we can bet on a nice rebound around say 2011 or 2012 based on the CBO's reporting from all news outlets. Doesn't seem to be sinking in to the average Joe though...we should be clamouring for these fools heads in Congress...they played around with the Big 3, let the mortgage mess explode and CONTINUE to exacerbate an already ailing economy. (More on this regarding some local stats below.) By this comment, I mean, really think about it...they have done nothing to really stop and/or change anything. The stimulus bill actually adds $$$ to the areas with the LOWEST unemployment (see articles from this past week) and gives a paltry $500-1000 to those of us who actually drive the economy.
Stop talking about tax breaks, give us cash in our pocket and that will move the economy!! Without getting into details of my own personal finances, I would suggest an exercise for you as you prepare your 2008 income taxes:
1) add to your income a early 401k withdrawl (forget about the penalties), just add the income a signifcant amount enough to put you and/or your family into the highly publicized $200-250k income bracket for family / $100-150 for HOH that Obama has been speaking about. This is the easiest way to show income impact...or just add enough income to put you in this range.
2) switch the Single, Married filing Jointly, Head of Household around to see impact on tax due
3) Then review what you have....or shall I say DO NOT HAVE!
I'll highlight for you...basically, you begin to lose all 'Standard' deductions at around $75k. Beyond that things are either graduated down or you get ZIPPO deductions because your income is too high. Any college loan interest...gone, dependents...gone. So much for definition of the middle class. It is not that those people making over $75k or $150k make too much, the fact is the tax burden is being borne on this class!!!
OK, I have that off my chest. Now back to local realty statistics...earlier this month I met with a realtor to get an understanding of exactly where the local market is as I prepare to make my life changes. Wow...while the data wasn't a shock, it was a true affirmation of how bad things are for existing home owners. The realtor ran sales for the last 12 months & pending sales for home ranging from $180k to $350k...pretty much the middle of the market. In my township (Tallmadge) there were only EIGHTEEN homes sold with most of them being sold much below the listing price and many of them short and/or foreclosure sales. Unbelievable...this economy is truly hitting close to home.
Even while all of the above seems pretty gloomy, we are truly lucky in our lives. Happiness, health and love...they get you through the days. Keep your eye on the media...start holding those elected to represent us to a higher standard and maybe the highly reported 'change' actually will occur...but, I don't believe it to be in the way the Obama followers wanted...
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