Friday, March 6, 2009

Way out on a Limb

I'm going way out on a limb to say I am seeing some encouraging signs. Not items that are good news in the absolute sense but rather signs that the degree of necessary pain to put the worst behind us are starting to show up. Companies are finally cutting or eliminating dividends is one minor example. I mean, how insane is it to for a company that is facing huge funding and cash flow issues to keep paying a dividend? There is no shareholder value in going bankrupt...

Newly unemployed numbers are still huge but aren't accelerating. There is bound to be at least one more quarter of substantial layoffs. Heck, for all I know I'll be one of them. But with such poor government action there is no way to avoid this round of layoffs and the sooner they're done the sooner the bottom will have been reached. 

The massive numbers of people facing foreclosure and other loan problems is going to be a big boon to the financial service companies that are some of the ones facing the most dire situation. 

And it seems even GM is acknowledging that bankruptcy could be a viable option - something everyone except union-backed politicians has known all along. GM has long been a government subsidized company and can't compete without a bankruptcy to clean up unreasonable financial obligations. 

I'm not happy about all the pain. I'm feeling some now and it will be a miracle if I don't feel a lot more soon. But like a root canal the only option to get to a better days is to push through it.

Newest source of my disdain: People claiming things are as bad as the Great Depression. Get a friggin clue. Better yet, read some history books and pray for forgiveness. 

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