6 million less employed from a year ago, counted with $25k yearly salary equals $150 billion less expenditure for companies, just on the hiring side.
By Daniel at 10 October, 2009, 1:08 pm
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Well, they might bring fair good numbers on EPS, not on revenue of course.
But because of that taxes are missing from the budget, unemployed benefits and retired has to be paid, government people has to be paid, and so on. And many of those will not come back for years, if they ever do so. Cost cutting on company side equals lower revenue on government side.
And sadly US government is not included in S&P500, but sooner or later someone, somehow has to pay back that debt, and the only ones who can do will be the very same companies.
New taxes will weigh on them for more years, than taking that debt took.
We might hit S&P 1100-1200, but going back to S&P 1500 might take 5-10 years otherwise US will crash as a country without new taxes.
Japan like ‘Lost decade’ is just coming.
Well, personally I expect worse, but I think ‘Lost decade’ scenario is the best best case scenario.
Roka
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