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November 13, 2008

"A Very Frightening Economy" Economy

I have the feeling people just aren't getting how screwed we really are. The US economy has been running on debt. Lending has ground to a halt. Do the math.

Here's a small glimpse of what's coming (from CBS2, Chicago):

The warning is out – [Chicago] Mayor Richard M. Daley says a parade of corporate chief executives have told him huge layoffs are planned around the city and will carry into next year. [...]

Mayor Daley says corporate leaders told him huge layoffs will impact the city this month and next, and into the new year. He also says city, county and state governments should be prepared for their revenue to fall dramatically because of the souring economy.

"This is going to be all year, so it's going to be a very frightening economy," Mayor Daley said. "Each one tells me what they're laying off, and they're going to double that next year. We're talking huge numbers of permanent layoffs for people in the economy. It's going to have a huge effect on all businesses."

The mayor said the gravity of the situation cannot be underestimated.

"We never experienced anything like this except people who came from the Depression," Mayor Daley said. "When you have that many layoffs early – and they're telling me this is only the beginning of their layoffs – that is very frightening."

Mayor Daley also warned that local governments will be in jeopardy and may not have enough money to meet payroll, although he is not worried about paying City of Chicago employees.

In addition, the federal bailout plan is changing, and the big three automakers are all warning they could go bankrupt, and lawmakers say if the auto industry goes down, the huge number of jobs lost would cause more house foreclosures.

[Via Cryptogon]

Posted by Jonathan at November 13, 2008 11:21 PM  del.icio.us digg NewsVine Reddit YahooMyWeb