Forget the Happy Talk: Longer, Deeper Recession Ahead, Execs Warn

[Joanne98]

For OpEdNews: Dave Lindorff - Writer

By Dave Lindorff

If you google "recession easing," you will find articles all the way back to April quoting Federal Reserve Chairman Ben Bernanke as saying that the recession is easing, and that the economy is "improving modestly." Newspapers too, on their own, have written rosy-tinged stories about how things are bad but getting better.

Spins get put on every hint of good news, as when last month "only" 11,000 jobs were lost (a story that was quickly followed by an "unexpected" jump in new unemployment claims by 474,000 in early December.


What didn't get widely reported was areport by the Association of Financial Professionals, a trade association that includes CFOs, treasurers, comptrollers, and risk managers of mid-sized and large corporations, which asked over 1000 of these executives the question: "When do you expect your company to begin hiring again?"

The answer tells you all you need to know about the depth of the current economic crisis, and blows all the media and government happy talk out of the water.

This Outlook Survey by the APF, which was funded by Wells Fargo Bank, shows that 26 percent of executives expect to see their company payrolls continue to shrink in 2010, while 46% more expect employoment to stay at current low levels. Put another way,only 25% of companies surveyed expect to return to pre-recession hiring levels in 2011, while 32% don't expect a hiring rebound until 2012. And fully 30% "do not expect their organizationsever to return their payrolls to pre-recessionary levels."

And here's another troubling bit of news. The same survey respondents say that their companies' access to credit--the willingness of banks to lend--has barely budged. In fact only one in six reported that the had found credit a little easier to obtain in the last six months, while one in five actually reported that it had become harder to obtain credit. So much for the Obama administration's and the Federal Reserve's vaunted efforts to throw so much money--literally trillions of dollars--at the banks that they would start lending.

Continued>>>
http://www.opednews.com/articles/Forget-the-Happy-Talk-Lon-by-Dave-Lindorff-091222-391.html

[Goldstein1984]

1. Few people believe the optimistic assessments of

those with a vested interest in deceiving the people.

TPTB see the masses as too stupid to figure things out. They believe that if they say optimistic things we will be optimistic and spend the country out of this recession. But this isn't a recession, it is the gigantic collapse of an economic house of cards, and adjustment that will not be followed by a return to prosperity. What we are seeing is what we will be getting.

[babylonsister]

2. An organization of bankers, people who are usually loathed aroud here?

Wouldn't it be in their best interests to say that?

[loudsue]

3. In other words, these CFOs and executives still plan on GOUGING

consumers and workers even further....trying to get the work of 15 people out of each employee, rather than the current work of 11 people out of each employee, and charging ever more exhorbitant prices for everything, and letting the quality of products fall below the level of trash.

Corporate America has screwed everything that was ever good about America into the ground. They hate quality of work environment, they hate product quality, they hate the land we live on, they hate our government that gave them their own golden goose, they mock honesty, integrity and hard work as something for the peasants to worry about. When are people going to wake up and take on the corporate structure? Head on?

[dkf]

4. I bet worker productivity is as much a jobs killer as imports.

[dkf]

5. It's the small companies that are the job creators.

And why should a bank loan when they can make tons of money speculating. If obama had a clue he would use stimulus money to loan to small businesses. Such a no brainer yet he wants to spend his tine guilting banks into making loans. What a joke.

[DavidDvorkin]

6. Now, this is the kind of opinion DU loves to see

Well, some on DU, anyway.

[dgibby]

7. Sure looks like a deepening recession on my street.

I live in a modest middle class neighborhood, mostly blue collar. We're in an excellent school district, and located in a desirable area. We have access to good shops, colleges, and hospitals, plus the Charleston,SC,Air Force Base, Bosch, Force Protection,etc.

Sounds almost perfect; however, there are 12 houses for sale on my street alone, and many more throughout the subdivision. Some of these houses have been on the market 6mos or longer.

As much as I would love to move back to my hometown (and family) in Virginia, there is no housing market here. SC has one of the highest unemployment rates in the nation, so the chance that the housing market will improve anytime soon is slim to none.

An already impoverished state,SC will soon run out of unemployment benefits unless someone in state government throws a Hail Mary pass by the first of the year.

The good news is that Boeing is going to be building it's new Dreamliner plane here, but, although they are taking applications, the plant has not been built yet.

One of my neighbors has been out of work for 2yrs, but not for lack of trying. He's in warehouse management, but the warehouses are empty and not hiring.

I have adopted a cat abandoned by someone who moved out and left him. I'm also feeding 6 feral cats in addition to my own cats and dogs.

The young man who's been doing odd jobs for me since he was 13 is now 20, married with a son and stepson. He's working 2 part-time jobs in addition to the work he does for me, his wife is a waitress, and they have no health insurance except for SCHIP for the kids. I am doing everything I can to keep him out of the military, but it's getting harder and harder each day because he doesn't see that he has any kind of future here, and he's worried about being able to take care of his family.

I'm sure that this is just a microcosm of what's happening all across the country, but until things start to improve on Main St, all that happy talk in nothing but that, just happy talk.

[C_Lawyer09]

8. I applaud your taking in the cats, good work!

My neighbors just took in two Jack Russels that were dumped. My wife and I are taking care of our dogs, 3 Shar-Pei, and three Miniature Fox Terriers, plus watching our friends Greyound mix, Lab, and Puggle. Meanwhile I'm driving out to our friends house to watch their five dogs, while they are visiting family for the holidays. I'm busier than a one legged man in an ass kickin' contest!

Is the reason you are trying to keep your friend from military service deeper than Iraq and Afghanistan? I realize I'm probably within the du minority, but I still feel that military service, though admittedly a risky proposition, offers much more than many realize. I'm recently retired. After my younger brother got laid off from his third bio-tech job, I suggested he check out the service. He's been in the Navy four plus years now as an Avionics Technician, and is very glad he did it. Don't feel obligated to explain your rationale, I'm just curious.

[dgibby]

10. I'm retired Navy.

I have no problem with military service per se, but I'm against pre-emptive wars. I'm also concerned because his little boy would lose the only stabilzing influence in his life if his dad had to deploy. The mother is an addict,very dysfunctional. That child would be destroyed emotionally if his dad wasn't there. Very sad situation.

Sounds like you're running a kennel! I have 4 dogs, 8 cats (all but 2 are rescues) plus the ferals. They've all agreed I can live here as long as the food keeps coming.

Neither of us can hold a candle to my niece, though. She's running a feral cat rescue/spay/neuter/shelter. She won't tell me how many cats she' caring for right now,'cause she says if she does, she'll have to kill me to keep me quiet! If the economy ever improves, I'll be moving there to help her. She's trying to get a grant, but it's not easy.

Thanks to you and your friends for caring for the critters. Hope your holidays are very happy ones!
:thumbsup: :hi:

[C_Lawyer09]

11. Back at you, and Anchors Away!

Good to meet you Sailor, I'm a recently retired Soldier. Thanks for all the good you and your niece are doing! My wife and I hope to do a lot of the same type of work down the road. Happy Holidays to you and yours!

[C_Lawyer09]

9. The Cold hard truth as it pertains to banks

Is that, until there is growth in the amount of savings on hand, and while there is still massive legislation afoot, some good, but also knee jerk, it will be hard to get them to come off the money for small business. Just like the Bush admin. quickly ditched there stated initial priority of Middle East Peace Process, in the current fray, it seems the Obama admin. has put tax reform on hold. I firmly believe that until we close corporate loopholes allowing of shore addresses for tax purposes, thereby forfeiting 100-200b annual tax revenue, it will take longer for any rebuilding steps to take hold. Also, (pull out the blame, I mean flame throwers) Government make work projects that are temporary in nature, do nothing to increase the "real" economic growth that will re-energize the foundation of permanent stable economic growth. It is more appeasement than a fix.