Dohh!!! Planned US Layoffs Surge in July

[tnitsuj]

From MSNBC.COM

man, am I glad I have a job that isn't going anywhere.

 

[lozina]

43% :Q

 

[Ferocious]

Never fear.

There's surely another Walmart coming to a location near you.

Plus when the wealthy get their tax cuts.....they will surely be hiring more cashiers and cleaning people.

 

[tnitsuj]

I can't claim to be an economics expert, but the mortgage/refinance market is also slowing down dramatically which is going to drag down the economy. Any economic experts want to comment? I don't really understand all the intricacies.

 

[charrison]

Originally posted by: tnitsuj
I can't claim to be an economics expert, but the mortgage/refinance market is also slowing down dramatically which is going to drag down the economy. Any economic experts want to comment? I don't really understand all the intricacies.

Vic might have an opinion.

Those that wanted to refinance likely did. We thought about refinancing, but only to reduce the term of the note, not the payment. Everyone I know that refinance shortened the term not the payment, so i dont know how much money low interest rates pumped into the economy. INterest rates are still low enough to encourage much building.

 

[Corn]

Any economic experts want to comment? I don't really understand all the intricacies.

Mortgage rates are on the rise because the economy is showing signs of a rebound. Investors are leaving the bond market (where mortgage securities are traded) for more lucrative investments.

If you are looking a simple guage of how the economy is doing, look at the automotive industry, not mortgage rates.

 

[Michael]

I refinanced and didn't shorten the term. I can shorten the tern by paying a little extra every month and I'm still trying to position my monthly expenses in case something happens (I'm actually not worried about my job in the short-term but 1 year out you never know).

I have 2 young kids. so I'm spending plenty <grin>, but I'm also saving plenty as well.

The first industry to be hit by the drop in refinancing is the refinancing industry. They always go through a boom/bust cycle and many of the workers added in the last year will be let go.

Those who already refinanced still have their savings coming every month. If the rates stay higher (they're still pretty low and this isn't quite what Greenspan wants), there will be far fewer new people with additional monthly savings entering the mix.

The effects of this would be felt 3-6 months out, right around Xmas buying season.

The layoff surge is not surprising. Businesses are being ultra cautious about hiring right now.

Michael

 

[Brie]

Originally posted by: charrison

Originally posted by: tnitsuj
I can't claim to be an economics expert, but the mortgage/refinance market is also slowing down dramatically which is going to drag down the economy. Any economic experts want to comment? I don't really understand all the intricacies.

Vic might have an opinion.

Those that wanted to refinance likely did. We thought about refinancing, but only to reduce the term of the note, not the payment. Everyone I know that refinance shortened the term not the payment, so i dont know how much money low interest rates pumped into the economy. INterest rates are still low enough to encourage much building.

I believe that a significant anount of people got the cash out option and paid down whatever debt they had. Im not sure how much effect this alone would have but moving from an 18+ intrest rate to a 6% would seem pretty big. Also consumer confidence is increasing so I am not too worried about the unemployment numbers. My stocks are still doing very well.

 

[NesuD]

Traditional summer shutdown effect in the auto industry. the auto plants send their people home in July for 2 weeks of vacation and holiday every year. plants that are doing model changeovers and major equipment upgrades will go out longer and their people will be layed off for a few weeks (just got done with a 5 week shutdown myself). All the smaller supplier plants will lay off their people to at this time.

Move along nothing to see here.