"Daybreak, which pops around 300 cars a month, is one of the larger companies in an industry still dominated by mom-and-pop businesses. It was recently acquired by Advanced Wireless Systems Inc., a tiny high-speed Internet-service provider based in Alabama that has been struggling amid the telecom bust. The company saw Daybreak as a means to strengthen its bottom line and show a profit."
And if you feel any anger toward me don't worry, I may soon join the ranks of the unemployed, always a possibility. My neighbor, who works for GE, has had to layoff several people over the past couple months. His office is shrinking - another sign of the times.
And so goes the backbone of the consumer who drives 2/3'rds of this economy.
Okay? Just the opposite. I see the carnage from a personal level.
Like I said, I know of five people (sales managers and systems engineer managers and an SE) personally who have gotten laid off in the last month. My neighbor, who works for GE has had to lay off several salesreps. I call old friends at Oracle and Sun - people are nervous, there's hiring freezes, headcount reductions, mandatory days off.
All my neighbors have scaled back their spending which affects their families. I've scaled back my spending which affects my family. I've personally cut out of our family budget: no more piano lessons for my daughter, no more pool clubs privileges (sprinklers for my kids now), no more Investors Business Daily subscription, cut back on magazine subscriptions for my wife and kids (I'm the sole supporter of my wife and two young teen-age kids), switched to a much lower priced hair cutter for my whole family, cut back on the cable channels, considering getting rid of the gardener, cut back on eating out (with three dependents we barely did that anyway), pushed off any idea of upgrading my 10 year old Ford Explorer, I'm considering doing extra work (consulting and teaching) again to bank some dollars in the bank - just in case I get laid off, etc. etc.
I've got a brother-in-law who owns his own bankruptcy firm - he just bought a 1.5M dollar house. He's doing exceptionally well in this economy.
So, no, I don't think this is a great time. And I think the ripple effects of slower spending by corporations and consumers will continue through at least the end of summer, if not longer.