Video Credit- Snyder Reports YouTube
Mismanagement in the corporate arena and greed leading to layoffs. It's an election year, so this is being swept under the rug but this can only be hidden and manipulated for so long.
The "Magnificent Seven" are massively overvalued and tech and financial industry layoffs rocked the economy last year. This was seen as isolated to the industries mentioned and a rebalancing post-pandemic.
Corporations gorged on cheap debt. Interest rates were so low for so long that refinancing debt and rolling it over was not considered seriously. Corporate debt is rolled over every 3-5 years and debt taken in 2020 is being refinanced now. Imagine the new payments on these debts and you'll see that companies will be forced to lay their employees off to meet Wallstreet expectations.
Automation and AI coupled with increasing rates makes layoffs very probable. The minimum wage for fast food workers in California rose to $20/hour resulting in mass layoffs. Profit margins on fast food are around 3%, so this wasn't a shock and now automated kiosks for orders and robot chefs are taking up the slack.
Expect big layoffs with no severance after the election. The overconfidence of the middle class and their hubris will be devestating. What makes people think inflation will come down?
Good luck out there.