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Even Before The Recession Has Officially Begun, Some Large U.S. Firms Are Laying Off Thousands Of Workers

May 20, 2019 by Michael Snyder

If the U.S. economy is “booming” and very bright days are ahead, then why are many large U.S. corporations laying off thousands of workers?  Layoffs are starting to come fast and furious now, and this is happening even though the coming recession has not even officially started yet.  Of course many are convinced that we are actually in a recession at this moment.  

In fact, according to John Williams of shadowstats.com if the government was actually using honest numbers they would show that we have been in a recession for quite some time.  

But the narrative that the mainstream media keeps feeding us is that the U.S. economy is “doing well” and that the outlook for the future is positive.  Well, if that is true then why are big companies laying off so many workers right now?Worldwide layoffsFord 7,000
Nestle 4,0003 M 2,000MGM Resorts 1,000Dress Barn closing all 650 storesWood-Mode Inc. 1,000

DYI:  So far DYI’s five recession indicators except for widening credit spreads are maintaining the all clear sign.  However they have weakened over the past few months enough to step up my vigilance for any other signs of a weakening economy.

When the next recession does arrive I don’t see a huge smash as many other web sites or bloggers are predicting.  Real estate does have some areas with rank speculation but nothing like the mass nation wide hysteria of the housing bubble.  So scratch off a nation wide real estate bubble we don’t have one.  Stocks are flying high and yet I observe zero chatter among the middle class talking about the latest hot stock.  The same goes for high yield and junk bonds.  So scratch off the three primary drivers of wealth that in my mind are not capable for a major economic crash.  Other areas such as oil prices are back up in price but not sky high – such as prior to the 2009 downturn.

To tie this all together when the next recession comes it will be mild in nature.  Of course if you are laid off it is never mild on an individual basis.  That is why one should maintain a very conservative financial status so when the economy throws you for a loop you’re back on track quickly.

   DYI