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Business leaders grow terrifyingly as the economy weakens

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The United States fears as stubborn high inflation, more payments at less cost, potential recession, endless wars in Eastern Europe, and supply chain turmoil leading to empty shelves and headcount reductions sank It may be in the stage of.

Working class families are worried about feeding their children. Young adults lament that they can’t afford the promised American dream of owning a home and starting a family. Only a year ago, the United States enjoyed the benefits of economic prosperity. Currently, investments in 401 (k), children’s college funds, and the stock market have plummeted and there is no end to it.

What symbolizes the change in thinking is what happened in the technology sector. After over a decade of unlimited growth, hiring thousands of high-paying professionals and offering attractive amenities and perks, the party ended abruptly. The end of cheap money has come to an end with the Fed’s quantitative tightening and the government’s suspension of trillions of dollars in monetary stimulus.

Thousands of newly fired technicians have posted about downsizing to pursue new jobs, so you can see the results on LinkedIn. Famous venture capitalist Bill Gurley summarized the new landscape in a informative Twitter thread, stating that “the’game in the field’has changed.”During the economic boom, tech companies “created a series of Disney-inspired experiences. [and] Expectations. “If your company isn’t positive for your cash flow, you can’t give up hope,” Gary added. [and] Capital is now expensive, you live on the time you borrow. “

Is Mark Zuckerberg starting to panic?

Employees of Facebook’s parent company, the dreaded Meta, are reported to expect a 10% reduction in headcount. Mark Zuckerberg, the once invincible leader of the social media giant’s empire, said he would crack down on poor performers.

Meta-Human Resources Chief Lori Goller noted in a note that employees who failed to live up to expectations in this new and harsh environment may have to worry about the safety of their position within the organization. I raised a voice of fear. Meta is enthusiastic as TikTok continues to steal market share.

The New York post Zuckerberg said he was unable to stay calm when one of his employees asked about vacations and personal holidays during a meeting where the CEO shared plans to let go of poorly performing workers. I reported.

Wall Street experts ring the alarm

You might recall the name Michael Burry from books and movies, Big short.. He was one of the only money managers to predict the free fall of the economy and stock markets. When the stock market plunged in the Great Recession, his reputation for making a visionary market call was solidified.

Barry has warned that the United States is facing another economic plunge, which will resonate with the job market. Sensing that the White House did not endure the serious nature of the dilemma, he accused President Joe Biden of moving the goalpost in the definition of recession (two consecutive quarters of contraction). Barry pointed out that Americans are using their credit cards to cover their high living costs. High interest rates on debt raise further concerns for consumers.

His view is reflected in the new Maru poll, where 57% of Americans are concerned about the impact of inflation on their financial situation and 14% are scared because they feel their lifestyle will decline. I feel it.

“There are many reasons for a serious recession and a serious debt and financial crisis,” said Nouriel Roubini, CEO of Roubini MacroAssociates and a teacher at NYU Stern School of Business. Another expert who predicted the financial crisis of 2008 and 2009, Rubini, said: Bloomberg“The idea that this is short and shallow is completely delusional. Today we are facing supply shocks in the context of much higher debt levels, a combination of 1970s-style stagnation and 2008-style debt crisis. That means we’re heading into a stagflation debt crisis. ”He thinks US stocks are likely to plummet and fall 50%.

Walmart warning

Wal-Mart’s share price plummeted by about 10%, and management lowered its quarterly and full-year earnings forecasts. Wal-Mart, the largest retailer, is a pioneer in the economy. So it’s alarming that one of the most successful American companies catering to working Americans is experiencing challenges.

Inflation has hit a 40-year high and prices have risen unpleasantly, so families are cutting back on purchases. While buying essentials such as groceries (low profit margins), families are getting electronic devices and other items that they don’t need to buy at this time. The problem for Wal-Mart and other retailers is that high-priced items are more profitable.

There are also concerns in many other sectors. For example, Wall Street has less M & A, IPOs, and trading activity. In addition, real estate is facing headwinds as families short of cash cannot afford to pay more monthly mortgages and are moving away from buying homes. Similarly, lessors cannot afford to pay rent in major cities.

Here are some positives

Famous Wall Street analyst Ed Jardeni provided some comfort.and Bloomberg In an interview, a longtime securities analyst said the worst of the bear market was over. Yardeni Research’s president argues that last month’s S & P 500 plunge hit a low of 3,666.77, most likely at the bottom of the 2022 stock market plunge. In addition, US consumers continue to spend and employment rates remain high, so recent corporate profits appear to be largely strong, he points out.