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Eldon Mast has been investing since the time he earned his first dollar back in the 1970s. He is particularly interested in how moods effect the market. In good times and bad, he has observed a peculiar fascination by the mainstream media on "bad news." He has also observed in business and... More
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  • Employers Laid Off Workers Too Quickly Some Say 0 comments
    Apr 14, 2009 12:10 AM

    Two economists now claim that the credit crisis fear last fall may have been the primary reason for many of the layoffs that we are now seeing. Like you've read here in recent weeks, they agree that indications point to a moderation of the those job losses in the coming months. In fact, as you've read here, companies may be looking to get those workers right back.

    The Lehman bankruptcy "scared the living daylights out of companies," said Ken Mayland, president of ClearView Economics LLC. "It may prove to be the case that companies cut too much."

    Maryland, who in the past has won best forecaster awards in Bloomberg's Markets Magazine observed, "They were very fast to pull the trigger."

    Antony Nieves, chairman of the Institute for Supply Management's non-manufacturing survey agrees.

    When credit was tight back in Oct/Nov 2008, many companies were forced to focus on short-term survival rather than on long-term goals. Now that credit conditions are returning to normal, "some of those workers will be needed back, for sure." confirms Nieves.

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