the Real Stimulus package
So…
My current theory is that McKinsey has likely posited a report stipulating a formula whereby public companies of a certain size reduce their work forces by a certain percentage. We are seeing this (i.e. employee reductions of approximately 6000 per company) happen almost daily.
What will most certainly follow is stock analysts rewarding these companies (and themselves) with opportunistic positive forecasting. Those companies that cooperate participate in the stimulus campaign will, in turn, be rewarded with higher stock valuations and share prices – which is obviously good for shareholders (this is particularly great for executives), and our economy (generally speaking).
This is a “Chinese maybe”.
The bottom line: The American people can’t/ won’t tolerate a devolving stock market much longer. So, it will “go up” (as the amicable Barrista at Starbucks confidently stated yesterday [to be clear, she said the “go up” part – none of the other bits and pieces]).
Seriously.
As large companies sacrifice shed lower-level employees (and dead-weight) mid-level management, the stock market will react (that buffoon the buzz killing Kramer on MSNBC notwithstanding) and trend upwards (despite 33 year old A.D.D-addled day traders). NOTE: a Client of mine that is the CEO of one of these aforementioned (think billion +) dollar companies recently mused that part of this thinking includes “squeezing” the remaining employees so productivity (also) goes up even as COST of doing business (lighter payroll) is reduced.
Summary: As the stock market begins to go move up, and stock analysts “cooperate”, investor, and American confidence in general, will mount; the DOW will point North (go up); and, the economy will follow.
Then companies will begin hiring again.
This will play itself out A LOT faster than any thing President Barack Obama has planned.
So… GM will start selling SUV’s to people that live in Alpharetta again. NOTE: One (amongst many) reasons I purchased a Ford F-150) [by the way… Is it just me. or does the music associated with the Ford video sound like something from an updated Dawn of the Dead movie?] was due to their bold stand in refusing to take money from the government relative to the “other” stimulus package that will (as intimated above) take a decade to waste everyone’s time and become not much more than wikipedia-fodder (but, mostly for my dog and soccer [incidentally, I have settled on “Rowdy”]).
By the way… Thanks for making this Blog part of your life. About 25,000 hits a day now.
Let’s Stir it Up with Bob Marley. Appropos for my Blog. And, its Friday.
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Peace be to my Brothers and Sisters.
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