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Layoffs expand in concert with the GDP

Thursday, September 4, 2008, 7:18 PM

Worst summer for layoffs since 2002 (Sept 3 – MSNBC)

Job cuts announced by U.S. employers last month
jumped 12 percent over a year ago to cap the busiest summer of
downsizing in six years, according to a report released Wednesday. The
latest tally pushes the total of announced cuts in 2008 to 667,996, up
29 percent from 515,855 in the first eight months of 2007.

Here is yet
another bit of data that is utterly out of line with the concept of a
still-expanding economy. In 2002, we were still mired in the
after-effects of the 2001 recession.

So how is it
possible to (allegedly) be expanding at a rate of 3.3% at the same time
that layoffs are so high that they are better matched to a recessionary
period?

It’s not.

Again, anybody who is following the government's reported statistics is being led horribly astray at this point.

If your
financial advisor ever quotes favorable government statistics in
support of getting you into or keeping you in a failing stock fund, I
would strongly counsel you get yourself a second opinion. There are
many good advisors out there who are extremely competent. I know a few,
if you are interested.

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