Even Microsoft and Sony Are Hit Hard in Economic Meltdown
I don't know that you could rationally argue anything as a "strong sector" of the economy at this point:
SAN FRANCISCO — Not even high-tech is immune from the economic meltdown.
Despite predictions — wishful thinking? — by some financial analysts that it would remain relatively unscathed, Silicon Valley and the rest of the industry buckled under distressing news Thursday.
Microsoft (MSFT) announced 5,000 layoffs — its biggest cutback ever — and Sony (SNE) said it will report an operating loss for the first time in 14 years: $1.65 billion. A day earlier, Intel said it will close several older factories, displacing 5,000 to 6,000 workers.
It is sobering news for the tech industry, which had resisted the gravitational pull of the tottering economy over the past year as consumers continued to snap up laptops and iPhones.
Not anymore. In the span of several weeks, orders for both business and consumer tech products have cratered, and technology companies began shedding workers.
Despite heartening quarterly results from Google (GOOG) and Apple (AAPL) this week, and job losses that aren't as deep as those in the financial and automotive industries, the tech industry is suffering its worst downturn since the dot-com bubble burst in the early 2000s. As jobs evaporate, so too is funding for tech companies both large and small.
And while it's not "tech," even Toyota (remember how the Republicans screamed during the auto bailout that Toyota was doing well because it wasn't "shackled" by unions?) is looking at layoffs here:
TOKYO (AP) — Toyota is considering cutting more than 1,000 full-time jobs in North America and the United Kingdom to cope with faltering global demand, a news report said Friday.
The details of the job cuts will likely be finalized by the end of the month, said the Nikkei, Japan's top business daily, citing an unnamed senior company official. Japan's top automaker could slash more jobs in other regions if global auto sales continue to slump, the daily said.
Toyota (TM) spokesman Yuta Kaga declined to confirm the report, saying nothing had been decided.
Hit by the collapse in demand for cars, Toyota is expecting to incur its first operating loss in 70 years. The company on Tuesday tapped Akio Toyoda, grandson of the Japanese automaker's founder, as president, paying homage to its roots amid a deepening global downturn.
...I can think of are the military industrial complex, and maybe the pharmacuetical industrial complex.
Army recruiting always "gets better" in bad economic times...
audit-prosecute-incarcerate
the prison industry. We are going to have to put all those default debtors somewhere.
"A debtors' prison is a prison for those who are unable to pay a debt. Prior to the mid 19th century debtors' prisons were a common way to deal with unpaid debt"
http://en.wikipedia.org/wiki/Debtors%27_prison
Study the symptoms not the virus...
Yeah, I'm gonna keep an eye out for "Prison system upgrades" in the economic stimulus program that is coming soon.
Infrastructure = ...roads, bridges, railways, parks, hospitals, prisons, mental institutions, and FEMA camps!
audit-prosecute-incarcerate
Don't forget the diaper companies, the GOP is single handedly keeping that industry afloat.
McDonald’s emerges as the biggest winner of all on Wall Street
http://www.qsrmagazine.com/articles/exclusive...
I pledge allegiance to the Constitution of the United States of America, and to the republic which it established, one nation from many peoples, promising liberty and justice for all
The military industrial complex receives over 54 percent of our tax money and this does not include the interest that we paid of the money we have borrowed to give it to them..
This 54 percent is what we know of. How much is hidden by censorship and other government means we will never know..
We spend more on our military then just about all of the other countries combined..
http://www.globalissues.org/article/75/world-...
US military spending accounts for 48 percent, or almost half, of the world’s total military spending
US military spending is more than the next 46 highest spending countries in the world combined
US military spending is 5.8 times more than China, 10.2 times more than Russia, and 98.6 times more than Iran.
US military spending is almost 55 times the spending on the six “rogue” states (Cuba, Iran, Libya, North Korea, Sudan and Syria) whose spending amounts to around $13 billion, maximum. (Tabulated data does not include four of the six, as the data only lists nations that have spent over 1 billion in the year, so their budget is assumed to be $1 billion each)
US spending is more than the combined spending of the next 45 countries.
The United States and its strongest allies (the NATO countries, Japan, South Korea and Australia) spend $1.1 trillion on their militaries combined, representing 72 percent of the world’s total.
The six potential “enemies,” Russia, and China together account for about $205 billion or 29% of the US military budget.
Why does the US number seem so high when the budget announced $517.9 for the Department of Defense?
Unfortunately, the budget numbers can be a bit confusing. For example, the Fiscal Year budget requests for US military spending do not include combat figures (which are supplemental requests that Congress approves separately). The budget for nuclear weapons falls under the Department of Energy, and for the 2009 request, was about $29 billion.
The cost of war (Iraq and Afghanistan) is estimated to be about $170 billion for the 2009 spending alone. Christopher Hellman and Travis Sharp also discuss the US fiscal year 2009 Pentagon spending request and note that “Congress has already approved nearly $700 billion in supplemental funding for operations in Iraq and Afghanistan and an additional $126 billion in FY'08 war funding is still pending before the House and Senate.”
Furthermore, other costs such as care for veterans, healthcare, military training/aid, secret operations, may fall under other departments or be counted separately.
None
Actually, the construction industry in America is alive and well right now. Welders, fitters, construction engineers, foreman, etc.. are in high demand right now in many parts of the country. People that work those 9 to 5's may have to start working those 6 day weeks at 10 to 12 hours a day like alot of people do in the industry.
all residential construction seems to be dead.
what part of the construction industry is hiring? got any links?
let me guess.....building prisons maybe? welding those iron bars together? ...fitting thousands of individual cells with their own individual sinks and toilets perhaps?
Obama may be looking for an interior decorator I hear.
audit-prosecute-incarcerate
Grand Rapids, MI, where there's a construction boom because of MSU opening its med school here. We're going to be opening some medical research buildings, too, and nice apartment buildings are going up for all of the medical professionals we're expecting.
Don't try to confuse the issue with half-truths and gorilla dust.
....medical/phamacuetical industrial complex alive and well! ....check! guess our govt needs to get ready for that ever imminent bio-terror attack huh?
audit-prosecute-incarcerate
and a med school. Your cynicism is duly noted, though.
Don't try to confuse the issue with half-truths and gorilla dust.
Like spending money on fusion enrgy research, cancer research sounds like a swindle.
Until someone figures out how to cure cancer (or safely cause two atoms to fuse, releasing more energy than needed to fuse those atoms).
Don't try to confuse the issue with half-truths and gorilla dust.
Stem Cell?
Hmmmm?
ya think?
What is your conceptual, continuity?
But that wouldn't be too popular amongst the many, many fundies here.
Don't try to confuse the issue with half-truths and gorilla dust.
Cause it's coming.
Hallelujah!
What is your conceptual, continuity?
Published: Friday January 23, 2009
Snip - US biotech firm Geron Corp. announced on Friday it had been cleared to carry out the first human trials using embryonic stem cells, testing the therapy on patients paralysed by spinal-cord injury.
http://rawstory.com/news/afp/US_to_carry_out_...
Study the symptoms not the virus...
That's what I'm talkin about!
It's coming folks. Hang in there.
It may be too late for my wife, Maybe not. I fucking hope not. But, this will help people
somewhere down the line somewhere.
Those shit for brains can kiss my ass .
What is your conceptual, continuity?
I hope for your wife too, mudshark.
With the hurdle of reconnecting spinal cords being surmounted, we can look forward to a day when we can replace about any failing tissue-system. Death will become optional.
That asshole wasted. 8 fucking years.
My wife would have benefited from those years. I honestly hate them for this one issue. The rest I can deal with. But this one issue, is stunning in it's blatant disregard for the health and well being of our citizenry.
Those GOP assholes can kiss my ass.
I will never forgive or forget them for this. This is a long time coming. 8 years wasted, because of some shit for brains decided he knew what was best for all of us. And we all know how that worked out.
Oh, btw, thank you for you kind words.
no really, that meant alot to me. thank you.
What is your conceptual, continuity?
My Brother built this black fence for this wealthy guy, it cost 6 figures! The rich still need stuff done. :-/
PS. The guy was tired of the people jumpin up onto his lawn to get a snapshot of his mansion, plus I think he was trying to show up the Breakers mansion next door :-P (Notice the pointed tips on the fence) :-O
http://www.newport-ri-views.com/Attractions/c...
aerial view > http://www.njcharters.com/destinations/new_en...
Study the symptoms not the virus...
...Global Warming will solve that problem.. the waves will be breaking in their living room - right??!!
"Egotism is the anesthetic that dulls the pain of Stupidity" - Frank Leahy
I gotta go now.
Work is for people who don't surf.
What is your conceptual, continuity?
Tell me you're not that crazy, muddy.
Don't try to confuse the issue with half-truths and gorilla dust.
But not at that one.
There's many more like it. Maybe not quite like that spot. But .......
I remember driving thru Half Moon Bay on the road up north one evening . This was a long time ago.
And out of the corner of my eye, I saw this massive peak way out there in front of the harbor. It looked 25 + from the road.
That would be about 2.5 miles. Yeah, I've done that, just not there.
Those guys used to come down to Big Sur and tell me about that spot in the early 80's. I passed. Like I said, there is more like it with out the crowd.
underground is the best around.:)
What is your conceptual, continuity?
There are very few surfable natural breaks on the Great Lakes. Almost all the surfers I know surf Grand Haven Pier, and they can't wait for the fall to come. The wind has to blow just so to get anything but chop in the summer.
Don't try to confuse the issue with half-truths and gorilla dust.
Before I closed the tab I noticed this picture. He hated people jumping on his lawn. :-) Approx 700' of oceanfront fence, another 200 or so feet of 10' high fence facing the Breakers.(not pictured)
http://social.cs.uiuc.edu/people/yapchaian/im...
Study the symptoms not the virus...
if that is true it is very interesting...
yet, something about that seems illogical (could be true, just hard to comprehend)
paul craig roberts writes:
The 1,120,000 lost US retail jobs in 2008 are a signal that the second stage of the real estate bust is about to hit the economy. This time it will be commercial real estate--shopping malls, strip malls, warehouses, and office buildings. As businesses close and rents decline, the ability to service the mortgages on the over-built commercial real estate disappears.
The over-building was helped along by the irresponsibly low interest rates, but the main impetus came from the slide of the US saving rate to zero and the rise in household indebtedness. The shrinkage of savings and the increase in debt raised consumer spending to 72% of GDP. The proliferation of malls and the warehouses that service them reflect the rise in consumer spending as a share of GDP.
Like the federal government, consumers spent more than they earned and borrowed to cover the difference. Obviously, this could not go on forever, and consumer debt has reached its limit.
Shopping malls are losing anchor stores, and large chains are closing stores and even going out of business altogether. Developers who borrowed to finance commercial ventures are in trouble as are the holders of the mortgages, derivatives and other financial junk associated with the loans.
The main source of the economic crisis is the infantile belief of US policymakers that an economy could be based on debt expansion. As offshoring moved jobs, incomes, and GDP out of the country, debt expanded to take the place of the missing income. When the offshored goods and services were brought back to be sold to Americans, the trade deficit rose, adding another level of financing for an economy that consumes more than it produces.
they are still showing s profit, yet are cutting jobs?
who wants to bet that they increase their outsourcing and visa programs
this is all a ploy to increase the bottom line while effing the american worker who made their company great
but ya, the tech industry is getting hit hard
i never shoulda left social work
they are cutting jobs to prepare for whats to come, despite showing a profit..
I'm pretty sure Bill Gates has a stimulus package sitting in his bank account. As far as the unions go, they better start tightening those belts. I'm sure some of them have a car, a house, cable tv, toothpaste, and the most gluttonous probably eat 3 meals a day.
These corporate big wigs are suffering, once you get a taste of private jets, golf 4 hours a day, escorts (not just hookers), and oh man the lobbyists...you just can't go back. Let's start a fund for them because living on a low six figure income is just unbearable.
Buy GE people. At 12 bucks a share?! Buy it up. By the end of the year you'll triple your money. Just don't get greedy. Sell at $35.00.
is intended to be a factual statement
jim cramer, is that you?
or...
jeffrey? jeffrey immelt?
;)
Seriously, think about it. It's GE! GE at $12.00 a share? You've got the rich just waiting for the right moment to buy this stock. Why should they get all the money. The last time GE hit bottom, in three years it tripled in value. This is what they want. They want us to be afraid to buy so they can scoop it up and get all the rewards. I dropped $1000 on it today at 12 bucks. I'm already ahead.
is intended to be a factual statement
i wish you luck in your bet
me: a bit too cautious for that. maybe i will miss out, but i don't think that the current problem fits in to a normal biz-cycle
GE, in moving towards financial services (bad time for that), is not the same GE that it used to be and the gamble of moving away from manufacturing towards finance might prove to be detrimental, imo.
honestly though, good luck
this is truly the apocolypse
It will be interesting to see just where Toyota is considering cutting more than 1,000 full-time jobs [from], in North America.
Snip - By JEREMY W. PETERS Published: September 4, 2007
"Organizers have seized on leaked Toyota internal documents that show the company wants to cut $300 million in labor costs in North America by 2011."
http://www.nytimes.com/2007/09/04/business/04...
Study the symptoms not the virus...
subsidiaries in my neck of the woods are all laying off now. Honda in Alliston is also cutting back massive hours and shifts. Wescast Industries (which is huge) closed the doors on one of it's main plants as well. They supply for all the auto markets. Have no fear though. The taxpayers will just give 'em all another bailout. Coming soon to a theater near you!
Do ya think the Bankers' jig is up?
Study the symptoms not the virus...
I think we are in for an economic collapse, the likes of which the world has never seen. The system is broken. Badly. It is unrepairable in the current version. Or it could be just a recession. LOL.
Fourth quarter of '08 profits were 58% down from the same period in '07. Closing 3 plants, 1100 layed-off.
Harley's a good company, but who can afford to purchase expensive luxury items these days?
Don't try to confuse the issue with half-truths and gorilla dust.
why they're in a mess. Microsoft rushed out their XBox 360s and some of them wind up burning out. Not good.
As for Sony, they have an awesome system (PlayStation3). Unfortunately, the price tag is unattractive ($399.99).
I'll stick with my Playstation2, Nintendo DS and Super Nintendo. I'm plenty happy :-) Now if I can just find Earthbound at a good price...
NOBODY 2012
Impressive (depressive?) gallery of pictures:
Growing stocks of unsold cars around the world
Democracy is too important to be entrusted to politicians.
Rise Up!
Protest!
I remember similar pictures like this in the 70s being on the television. Miles and miles of vehicles they couldn't sell.
Damn, I just saw that article before you post it here.
the pictures are amazing.
they just might start giving them away.
Massive Secret Mustang Junkyard Found In Rhode Island Forest :-O
http://jalopnik.com/5102534/massive-secret-mu...
Study the symptoms not the virus...
And it is not a good story...
"Parachutes are allowed in checked or carry-on baggage, but may not be worn in flight."
---Southwest Airlines
Poor George has lost his house, car, airplane, personal chefs and job. He's ineligible for WIC, food stamps and even unemployment benefits. Let's keep this fine, compassionate conservative Christian in our prayers. Except for 9/11, he kept us safe from the terrorists who didn't live in the White House.
but, going against the thrust of the linked articles, the troubles at microsoft and sony seemed very predictable.
I can hardly believe that even Sony has been hit by the economic downturn.
[Deleted. OT. We've got a lot of different irons in the fire. The name of the blog is "Crooks and Liars", not "This Is What TeaEyeIs Says You Must Read". If you'd like to discuss it now, please take it to the last Open Thread or wait until there is a thread on which the comment is topically related. Thank you. Site Monitor]
Gee. Tough about Sony.
It would be nice to have a mid-day Open Thread. The readers on the East coast are several hours ahead of the usual 9pm PT zone posting.
[We've got six more posts scheduled for the evening, which will bring us to seventeen for the day. Yes, we could probably post forty a day, but then there would be topics posted, whether they be serious or light, that wouldn't get the attention the site believes they deserve. Site Monitor]
see Sony's sales problems. Their products are usually overpriced. Microsoft on the other hand, has almost a virtual monopoly going. The only thing that would cause them to layoff is less profit and not lack of profit, like businesses who have no sales. When was the last time anyone heard of a giant sale of Microsoft products? I've never heard of a single product on sale.
no doubt. microsoft is a trust begging to be busted.
but, as we dip closer to economic depression the microsoft biz model--a reliance on unending software/hardware purchases--has been undermined. they do have a monopoly, but their OS/software stranglehold in the market loses its 'power' when people just stop buying.
not to mention the vista clusterfuck
and another factor is probably the lack of stealing other people's ideas has dwindled. People caught on. Parents decided they wouldn't allow their children's software to be stolen for $100,000 and then watch Microsnot make millions of it. Takes awhile, but people eventually catch on. LOL.
"lack of stealing other people's ideas has dwindled"
funny
a few years ago, there was a major news blitz on this wonderkid from BC that was being courted by Microsnot. In the end, they got him and whatever software he invented for a couple hundred thousand. Sounds good, till you realize Microsnot's profits off his software was in the millions. Guess it isn't stealing. It's mafia type persuading. Who else would he have sold it to?
i hadn't heard about that story.
off to google!
No. Toyota's losses are due to FOREX (Foreign Exchange) imbalances (ie. Yen too strong v USD) and downturn in consumer spending (poor forecasting by strategy dept.). Yes they do have better cost control than Detroit.
No. There are some strong sectors (Healthcare, Education, etc.).
That said, any analyst that predicted Microsoft (reliance on business services, which do poorly in downturn as companies put off updates or upgrades) or Sony (reliance on discretionary consumer spending) to even make expectations are smoking what they peddle.
I see you post on here always defending banks and major corporate thugs, so I was just wondering.
Wow, great line of questioning. Do you defend rapists?... what a joke. Are you 15?
I am equally harsh on business. However, I tend to play devil's advocate on this site as I have come to understand most posts need a bit of financial education. It's nothing new, considering that most people in the US don't understand much about the financial industry... part of the reason we are in this mess.
OK. I was just asking. Not sure why it offended you though.
We've been bitten and kicked around for so long now that we just respond out of anger. This is our PTSD.
What is your conceptual, continuity?
That's rich.
ah so thats it? a fool me once kind of thing once bitten twice shy! why seems to me that could make a person cynical !
So, Canucks fan... Sens, Lafs, Habs?
(CBS) Fifty-three-year-old Lisa Kelly is fighting Leukemia. For the past two years, she has also been fighting to pay for treatment.
"It just wears you out, it just takes everything out of you," Kelly said.
> http://www.cbsnews.com/stories/2009/01/22/eve...
I myself believe many people are putting the cart before the horse.
I'm concerned with global financial economy and our central bank(s) implementation and practices. I mean a piece of wood worked better then our fiat dollars and fractional reserve system.(See Tally sticks) I believe they lasted about 400 years? As well, I believe we've been had by some crafty individuals, time will tell?(It's starting to show!)
PS. I'm looking forward too February, when B. Franks plans on looking into the Fed., that maybe interesting?
Study the symptoms not the virus...
Agreed. The Healthcare system in the US needs an overall.
As far as your comment on the economy... well, I think I understand your position and would agree that it is fairly complicated. That said, the Fed and fiats do work to a great degree. It's just a shame that regulators fall asleep at the wheel or in some cases hide ignorance.
I can tell you already, one interesting thing. The Fed, not the SEC, oversees the new "bank holding companies". That means the largest financial institution under the SEC is only USD 3.3 bio (Lazard). As well, there is currently a row between the Treasury and Fed.
http://www.cringely.com/
"I never meant to say that the Conservatives are generally stupid. I meant to say that stupid people are generally Conservative.”
- John Stuart Mill
Both had good quarters. Apple in particular, in the quarter ending last month, the Christmas quarter, had the biggest quarter of their history. Almost $11 billion sold. $2 billion profit. Sales of Macs up -- 2 and a half million. iPods continue to grow, even though the iPod must be getting mature.
There are those who want to go for the cheapest, but they're the ones that are suffering.
Agreed on Apple, people are trading up.
Google was a bit surprising considering that their revenue is tied to ads. Would be interesting to see overall ad spend figures per medium. Could be that businesses are using the cheaper ad (Google) and cutting back on TV and such.
i worked at microsoft for 10 yrs. before steve ballmer, there were company moral functions and smiling faces. i left just two yrs ago right
after steve ballmer came into the microsoft picture. after he took over, there are NO employee moral functions like there were and he has been very busy negociating and building a new off-shore microsoft campus in India. where do you think the new jobs will be? could it be in
the very low pay country of India? YES. and you can bet that steve
ballmer has not taken one penny of salary reduction at this time and
WON'T. he's as big a fat gas bag as the rest of the overpaid ceos.
How about living the glamorous and exciting life of a Repoman?
Economists predict that the U.S. will need 12 million new bindlesticks by the year 2011: how about getting into this fast growing sector of the economy early?
Have you ever considered using your family connections to get a small stake in a Major League Baseball team and then finagle your way into a good salary as President of the franchise?
If you already have a drug habit, low self esteem and herpes, then why not consider the romance and high pay of a career as a Sex Worker? After all, you can't fight destiny.
Retirement didn't work out? Re-entering the job market? You might want to consider a career with WalMart. Sure it's minimum wage and there are no health benefits, but it'll pay the rent and leave enough left over to keep you and the grandkids in store brand ramen and hotdogs until you die from complications from your untreated diabetes and the county sends the kids off to different foster homes.
How about having your Dad's wealthy friends pony up a few million so you can start your own energy company in central Texas?
Have you considered the fast paced and highly lucrative methamphetamine industry?
In the event of a successful crackdown on illegal immigration, you might want to consider work in a slaughterhouse. Don't expect benefits, or a safe workplace, but the pay is often as high as $9 t $10 dollars an hour! Plus there are ample opportunities to work overtime (though regular pay will still apply).
How about a career as a conservative pundit or radio talk show host? No formal education or training needed! In fact, education may be a definite drawback. Recession proof job: despite zero demand from consumers, both print and broadcast media continue to hire - as fast as they can! DON'T apply if you possess personal integrity and/or a 4 year degree! DO apply if you brood obsessively on how Obama's tax plan will affect you when your Powerball numbers finally come through.
Like being your own boss? Love living and working in the great outdoors? Then consider a career as an Urban Trapper! That's right you can be that guy who lives in the field behind the power plant and tans his own possum and raccoon hides. While the 'squares' live out their lives of quiet desperation, you can be living the life of a free man and all that comes with it - like nutria stew, ringworm, crusty pants, drunken knifefights and mental illness.
Don't let anyone tell you that there aren't lots of opportunities in the new, George W. Bush 'Ownership Society'!
"Have you considered the fast paced and highly lucrative methamphetamine industry?"
----
Yes, I have tried it before, but the faster-growing (and more profitable) prison industry always seems to catch me...
"Parachutes are allowed in checked or carry-on baggage, but may not be worn in flight."
---Southwest Airlines
it sounds like your 'feat' aren't fast enough
nyuk, nyuk
Discussion of bank nationalization, among other things, with Thomas Frank and David Sirota.
"Parachutes are allowed in checked or carry-on baggage, but may not be worn in flight."
---Southwest Airlines
Makes me fear for my own job as well. Not that I'm above any job but I've got certain medical conditions that pretty much require some kind of insurance coverage! Type 1 diabetes, pernicious anemia, clinical depression... The list continues. So I know how I could deal with the second two in the long run but for the first one I'm fucked if I get layed off. Unless you're using your 401K as unemployment insurance, who in the fuck can afford COBRA once again?? Tough times!
As Thom Hartmann likes to say.
Microsoft has its own problems eating into the profits. They aren't a monopoly in the emerging netbook and crucial "devices" sector.
Linux leader on Microsoft woes
http://linuxdevices.com/articles/AT8154244993...
And some countries, like China, have used linux as a bargaining chip in licensing negotiations. Russia may be next: http://linux.slashdot.org/article.pl?sid=09/0...
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