<< just as silicon valley and broadband bay are slowing down and laying off employees. >>
I keep wondering how those companies are going to retain employees---those that can still afford to, that is. Most have stayed largely because of lucrative stock option packages, which have the added benefit of keeping a lid on labor costs for these companies. Actually, what really happens is that labor costs get "outsourced" to the general shareholders. But with stock prices hammered across the tech sector, these options have become much less lucrative. Seems only a matter of time before these employees, with screaming mortgages in over-inflated real estate markets, begin demanding actual cash for reimbursement. If this occurs to a significant extent, the companies will be forced to trim their work force (thereby limiting their growth), or pass along the increased labor costs to their customers, who are in a position where they are less able to pay such increased costs, or both.
Yet another contributing factor to recession and inflation, IMHO, which is simmering beneath the surface, but nobody seems to want to talk about much.
But hey, why worry? Not a problem. I bet AG is preparing a speech right now, where he'll give some obscure hint of some sort that will just solve that whole problem for good! C'mon, AG, we're waiting...... Bring back the happy times.... just a sentence or two should do it! <ggg>
WS |
