It makes me sick that Wall Street analysts are looking at people losing their livelihoods and seeing that as a positive sign. They're even encouraging it and asking for more cuts to improve the various stocks' standings. That is both cruel and shortsighted. Layoffs are good for short-term gains but not so much for the long-term. How is that good for the future of any given company and the stock market in general?
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The reason why Wall Street is “asking for more cuts” is quite simple. with the increase interest rates, a company now has to generate a much higher return than 5% per year to be an attractive investment compared to e.g. US treasury bonds, since the company is a riskier investment than the bond. Any company not doing so will be devalued and eventually faces trouble.
The wealthy have fabricated this inflation to manipulate worker's fears. And the media has helped to fuel these fears by saying the people who left their jobs for more pay and better benefits now regret the move. Seriously, of course that's utter nonsense.
It's all part of the plan to get people back in offices, and working long hours in fear of layoffs. Yes, this is capitalism at its worse. You are merely a pawn in their game.
Wall Street vs Main Street
We should not be shocked at this news. Fed Chairman - Powell has hinted at this for months hiking rates to combat inflation is one "tool" but you add layoffs now you can help control inflation. Powell won't say it directly but he says enough by not calling it by it's name. Like it or not Job layoffs are imminent to help control inflation.
I think you should rent the movie Wall Street and make sure to get some pop corn with butter. As Gecko said, Greed is good.
More mindless sheep were sent to the tech slaughterhouse. Oh, what joy...
New to capitalism?
Unfortunately that is the nature of the beast. High inflation can only be curbed if people stop spending. So they have to raise rates and cause a recession, which in turns means people stop spending. The cycle repeats.
That said, if you look at tech, wow, it's so fat with their high software margins. They just end up hiring people to stop the competition from hiring them.