>>"The economy is not that bad, the FED says they are on top of things.."<<
So, by saying the above, you are suggesting that you're in a camp that believe the FED knows what they are doing. All I can say is "Good luck".
>>"the worse part of the economy is that the inexperienced CEOs made some extreme moves out of panic. . . like layoffs, cancellation of orders, and curtailment of expansion. . . but since so many of these inexperienced CEOs have jumped the gun on the economy, they have made major contributions towards fear of recession. . . .which is becoming a self-fulfilled prophecy. I have no respect for them."<<
I'm sorry to say this, but I think you are not making sense here. You are calling CEOs inexperienced because they layoff employees, cancelled orders, and curtailed expansion? Did you even call these CEOs and asked them why they were doing what they were doing? Did you ask if demand for their company's products were still strong? Did you ask what percentage of their account receivables were in danger of uncollectible?
The sad fact is that that the new economy did not turned out to be what everyone was expecting 2-3 years ago. The new economy was based on uncharted territory- an unknown and unproven scenario that fueled our imagination which in turn drive the Nasdaq into bubble territory. Alas, the internet-based economy turned out to be not so hot, money couldn't be made in the new economy. Perhaps, we are ahead of ourselves in our expectation of the new economy? All the seed money from IPO were used up with no result to keep the engine going. Thus, burn-rate must be cut down dramatically to buy a bit more time. What to do? Well, you guessed it... layoff, cancel order that is not needed, curtail expansion that is no longer necessary...
In summary, while you're calling it a self-fulfilled prophecy; other called it a matter of survival. |
