Announced layoffs came with this sentiment from Bezos.
Jeff Bezos warned the US economy is likely to slump in a painful recession.
He urged consumers and small business owners to reduce their risk by holding cash and delaying big purchases.
Many executives have recently warned of difficult economic times ahead, with a fresh wave of layoffs and cost cutting measures taking effect over the past weeks.
in NYC any one of those 4 items could cost $20 depending on where you shop.
You gotta be crazy if youâre paying that much. But then again, stupidity had no levels
Worked for Amazon too.
To be fair, their business model took advantage of the current rules. Take all your profits and reinvest it in the company buying real estate, growing your footprint etc and on paper show that youâre not making anything.
Meanwhile you buy out your competition and control pricing. If you ever pay attention, Amazon lowers their price to match a competitor such as Best Buy. What happens when no competitors are left?
In any case, I saw the 10,000 people layoff as a media stunt. They are forcibly pushing out 6k-12k corporate employees annually based on my back of the napkin math just because of their forced attrition policy of pushing out a % of employees each year.
Itâs not reinvesting profits thatâs the issue. If they only did that they would have folded once they moved away from books. Itâs the VC money that kept them afloat, then stock issuance.
I never said the rules werenât rigged eitherâŚ
Same goes for most everyoneâs favorite tech companies.
Canât turn a profit year after year but somehow have 9+ figure valuations.
When the well runs dry itâll be a rude awakening.
Will the well run dryâŚnobody knows.
Something that people arnt talking about is 5-6% fed interest rate vs street interest rate of 8-10% in the not so far fetched future could really mess this up.
EV cost way more in initial cost thus high interest rate will make there monthly even higher.
We have already seen this for homes but cars interest rate could really mess things up as what people can afford for the same amount of monthly payment gets smaller and smaller.
Not only that, but ford has announced they will use 40% less employees to make EV, thats a lot of high paying union jobs gone that wont come back as automation isnt your grandpas automation, high paying low lvl entry jobs are going away while we getting left with very high paying but high entry lvl and very low paying low lvl entry jobs but even harder then before.
Im not a doomer and i personally believe usa economy since 1930s built to go through a Phoenix phase about every 10 years where old economy is killed and new one is reborn.
But saying that this cycle will hurt like never before.
Mom and pop arenât exactly able to break into the tech business anyway, but I know what you mean. Theyâre more in sales and being decimated by inflation, increased interest rates on inventory, coupled with lack of consumer spending. The âwellâ prints money at a rate the world has never before seen. If it dries up then it could be a mad max scenario. Thatâs why itâs so hard to invest now, no period in time ever had this type of debt to gdp. P/e means nothing at the casino that is the nyse
This is all weâve been talking about for literally the last 3 months. The economy canât handle these rates. It was propped up through zirp for years. Also how do we pay the national debt at 5-6%. Itâs not possible, doesnât take an accounting degree to realize that the only option, and the goal of all this, was to kill the dollar to replace it with a global standard.
Problem reaction solution at its finest. These Market manipulators have been doing the same thing over and over for hundreds of not thousands of years, and the plebes are none the wiser. Nothing new under the sunâŚ
The scary part is that normally iâd write off the global standard talk as conspiracy theory, but this time itâs not just the US impacted, itâs more or less everyone. Theyâll let things go from bad to worse, and then propose the âsolutionâ to save us.
When do we bring back the old tar and feather technique for these âpeopleâ? Insanity the damage they inflict with their policy. Wonder how much his pay increased the last few years, parasitesâŚ
Doesnât take a genius to understand if thereâs 2 jobs for every 1 looking then that means they need to increase pay to fill their positions. Itâs an absurd quote and completely untrue anyway. These psychopaths doctor all statistics to fit their agenda. Guess we need more immigration to fill the jobs, they live their slave labor afterall.
Completely nuts. Theyâre saying nothing about record-level corporate profits, but make sure you donât give out any pay raises so we canât afford to buy food/shelter anymore.
The Fedâs outlook is completely sickening, basically screwing over the little guy. Wanting unemployment to go up, salaries to go down, basically wanting the general population to be miserable.
I donât think enough people realize that the Fed is a private entity and not part of our government. While they do try to direct fiscal policy, they also serve their own masters and have to ensure they remain profitable rather than doing whatâs best for the people.
So what exactly do you want them to do ? This is the only tool in their arsenal.
What is best for the people ?
Some economists (many), think doing nothing would be better than what has been done for the past few years. I have no personal comment as I am not smart enough.
Itâs easier to point out the problems than to solve them.
The wage issue does not have a simple solution. Regardless of profit, that goes to cost which translates to inflation⌠itâs a catch-22.
Just like the Covid handouts created employments issues for businesses.
Iâm in agreement that modest increases followed by doing nothing until the supply chain heals might have been a better option.
Nance and Chuckles pretty much have said exactly this. Once a confederate, always a confederate. 
Iâm all for raising rates. Now that they had them at zero for years. Thatâs the issue, economy was already booming why would you have zirp during that unless you wanted this to happen?
Double digits
