Recession?

Are we headed into a recession in 2016-2017? The decline in the key drivers of economic growth say yes: Business fixed investment has declined by an annualized 4% over the past two quarters. Business equipment and software declined 5%. Non-residential structures dropped almost 8%. Employee layoffs. “U.S.-based companies announced 65,141 job cuts last month (April), up 35 percent from March.” Boeing plans to layoff 8,000 employees – 10%... Read More

What Is The Fate of General Motors, Ford and Chrysler?

General Motors, Ford and Chrysler may have to enter into Bankruptcy to reduce their hourly cost of labor.  Running out of cash may be the trigger that puts one or all of them into bankruptcy, but it will be a blessing in disguise. One of their most significant problems is that their hourly labor costs are reportedly $20 to $30 per hour higher than their Japanese competitors. Some of the differential will be reduced with the UAW’s assumption of... Read More