Friday, May 08, 2020

Job losses during a crisis, observations

---Today, after a day or two of thought and looking at this unusual stock market, rising amid the crisis, there have been reductions in certain areas in recent weeks.  Today there was the thought that certain things are absolutely needed.  As summer approaches, air conditioning is the ultimate necessity in many parts of the country.  Eat a healthy meal that costs more or have air conditioning working, no question, peanut butter and jelly sandwich and twinkies are fine. So today added some CARR, aka Carrier, and TWNK, aka Hostess Brands, to my equity account.  Comfortable with these choices this as summer approaches.  With schools being closed and everyone in the house, compromises might be essential.

---Thoughts below from two days ago, now becoming a topic on CNBC today.  Today posted due to my unique situation.

---As the current global pandemic crisis eventually passes, many suggest that significant change is still ahead of us.  Focusing on all aspects of that is mind boggling, brain addled into incomprehension.  Sean Hannity and Stephen Miller may have no such fear, but for the rest of us mortals focusing on singular aspects of change is better.  Let's be wrong on this just one thing at a time.

---When many smaller businesses receive Federal money under various assistance programs, they are required to maintain employee's jobs for a limited period of time.  In situations like this at mega businesses, most state that employment levels will stay the same after the crisis, just furloughed for now.  In other businesses, large and small, the job cuts will by necessity hit fast and furious after that time(excuse the silly reference).  In past situations like this, it eventually becomes an opportunity for firms to let go of mediocre employees who have maintained their jobs by being marginally competent, respectful of their bosses, and really friendly to all.  That will happen again, but this time it may cut deeper.


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