'We all remember what happened in 2008 and 2009, and now it appears that another very serious downturn has arrived.'
Hobbled by gargantuan over-regulation, stifled by a federal reserve that won't cut interest rates despite all other industrialized countries seeing THEIR central banks do so upwards of five times, and forced to fill jobs with UNQUALIFIED PEOPLE under the guise of "Diversity, Equity, and Inclusivity (DEI)" American corporations are staggering under the fierce load.
Trump moved swiftly to reduce the over-regulation, cutting 20 old rules for any new rule enacted. Corporations are swiftly ditching the phony DEI and dumping the nitwits they were forced to hire, but the federal reserve seems to be deliberately sabotaging economic recovery by flatly refusing to lower interest rates.
As
a result of the carnage inflicted upon American Businesses by radical
leftist policy wonks, most born with silver spoons in their mouths but
who never worked to create anything in their empty, miserable lives, the
US Economy is hitting rough spots. Serious rough spots. And it's
showing:
#1 Sales of new homes in the United States absolutely tanked last month…
- Sales of new single-family homes dropped 13.7% in May compared with April to 623,000 units on a seasonally adjusted, annualized basis, according to the U.S. Census.
- That sales total was 6.3% lower than May 2024 and well below both the six-month average of 671,000 and the one-year average of 676,000. It also lags the pre-pandemic average in 2019 of 685,000 units sold.
- Wall Street analysts were expecting May new home sales of 695,000, according to estimates from Dow Jones.
#2 According to the latest numbers that we have been given, home prices in the U.S. have fallen for two months in a row…
- After US home pries declined in March (the latest data) for the first time in over two years, this morning’s Case-Shiller Home Price Index data was expected to show another drop in the cost of buying a home.
- And the consensus was right but way off in magnitude as prices in April tumbled 0.31% MoM (-0.02% exp) – the biggest MoM drop since Dec 2022…
3 Last month, existing home sales in the U.S. were the worst that we have seen during the month of May since 2009.
#4 Retail sales fell even more than expected last month…
- Consumer spending pulled back sharply in May, weighed down by declining gas sales and looming unease over where the economy is headed, the Commerce Department reported Tuesday.
- Retail sales declined 0.9%, even more than the 0.6% drop expected from the Dow Jones consensus, according to numbers adjusted for seasonality but not inflation. The decline followed a 0.1% loss in April and came at a time of unease over tariffs and geopolitical tensions.
#5 The Federal Reserve Bank of New York is warning that the labor market “deteriorated noticeably” during the first quarter of this year…
- Economic research from the Federal Reserve Bank of New York indicated the labor market “deteriorated noticeably” in the first quarter of 2025, with those just entering the workforce taking the hardest hits.
- The Labor Department reported that employers added 139,000 jobs in May while unemployment held steady at 4.2%. The unemployment rate for all college grads was 2.7%, but the rate for those between the ages of 22 and 27 years old jumped to 5.8%, according to the New York Federal Reserve. That’s the highest reading since 2021.
#6 According to Challenger, Gray & Christmas, U.S. employers announced 47 percent more job cuts in May 2025 than they did in May 2024…
- Layoffs of U.S. workers were nearly 50% higher in May than they were a year ago, with reductions attributed to the Department of Government Efficiency (DOGE) remaining the leading reason for job cuts this year, according to a new report.
- Global outplacement Challenger, Gray & Christmas on Thursday released a report that said there were 93,816 job cuts announced by U.S. employers in May. That amounts to an increase of 47% from 63,816 announced last May, while last month’s figure was down 12% from 105,441 cuts in April.
#7 For the first five months of this year, U.S. employers announced 80 percent more job cuts than they did during the first five months of last year…
- That brings the total number of job cuts announced this year to 696,309 — an increase of 80% from the 385,859 jobs cut in the first five months of 2024. This year’s total is just 65,049 job cuts away from matching the 2024 annual total.
- “Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies’ workforces. Companies are spending less, slowing hiring, and sending layoff notices,” said Andrew Challenger, senior vice president of Challenger, Gray & Christmas.
#8 Factories in California are permanently shutting down at a staggering pace…
- All within a week, California lost Amy’s Kitchen’s San Jose plant (331 jobs), Anheuser-Busch’s Oakland warehouse complex (142 jobs), and several smaller plants, all for unsustainable prices and operational disruption.
- Amy’s Kitchen, for example, was losing $1 million monthly, consumed by inflation, labor shortages, and supply chain problems. Anheuser-Busch’s exodus, conversely, left workers in suspense as the plant changed hands without a guarantee of employment.
- It is not bad luck, evidence of a business environment where even legendary companies can’t survive the relentless fiscal squeeze.
#9 More than 3 percent of Paramount’s entire workforce will be hitting the bricks…
- Paramount Global is trimming its U.S. workforce by 3.5% in a move to cut costs.
- The company’s plans to cut jobs were announced Tuesday by its three co-CEOs in a company-wide memo viewed by FOX Business.
- Co-CEOs George Cheeks, Chris McCarthy and Brian Robbins said in the message that Paramount was “taking the hard, but necessary steps to further streamline our organization this week.”
#10 Microsoft is cutting jobs in its gaming division for the fourth time in 18 months…
- Microsoft is planning another round of cuts at Xbox as part of the tech giant’s ongoing reorganization.
- Xbox managers are expecting substantial job cuts across the entire group as soon as next week, people familiar with the matter told Bloomberg. This marks the fourth time Microsoft downsized its gaming division in the past 18 months, the outlet reported. Several video game studios at the company’s Xbox division were shuttered in 2024, too.
#11 At this point, things are so bad that even Google is reducing headcount…
- Google on Tuesday offered buyouts to employees across several of its divisions, including those within its knowledge and information and central engineering units as well as marketing, research and communications teams, CNBC has learned.
- Knowledge and information, or K&I, is the unit that houses Google’s search, ads and commerce divisions. The buyouts Tuesday are the company’s latest effort to reduce headcount, which Google has continued to do in waves since laying off 12,000 employees in 2023.
- CNBC could not confirm how many employees were impacted by the latest round of buyouts. The Information reported earlier that the company offered buyouts to employees in the search and ads unit.
Our ongoing economic decline is just one element of the “perfect storm” that we are now experiencing.
Everywhere around us, chaos is erupting.
Unfortunately, I believe that conditions will become even more chaotic in the months ahead.
If you currently have a job that you value, I would hold on to it as tightly as you can.
We all remember what happened in 2008 and 2009, and now it appears that another very serious downturn has arrived.
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