Inside news from the Industri

No matter what the EU leaders and G20 members say, unemployment is still soaring. In the United States, companies are still firing their employees to remain ahead in their game. They want profit, so they cut away the loose strands and wish the unemployed good luck and good riddance.

Barack Obama is unhappy. While he’s meeting up with the G20 leaders, the increasing rate of unemployment remains a somber reminder of what still has to be done in the United States. If nothing is done, things might become uglier. For instance, the unemployment rate might reach 15%. Back in the nineties, the unemployment rate nearly reached 16%. If this happened prior to the Obama administration, it can happen again, easily. What do you think Obama should do to the big businesses?

To avoid firing a significant chunk of its twelve thousands employees, Arrow Electronics is looking to mandating certain components of its wage system. This would be a far kinder move than to simply fire its employees. It shows how a fairly large producer could be kinder to the people compose its corporate body.

In the end, it would be manufacturers like this that would fix the failing and ailing economies. When most producers are thinking of firing hundreds of employees to keep from losing their millions of dollars, producers such as this think of long-term goals instead of short-term ones.

What do you think would be a better approach? Are producers going to wake up one day and finally start thinking of long-term consequences?

How deep is the crisis? How deep is deep? What industries are involved in the deadly pirouette to bankruptcy? Just recently, the company International Paper shut down one of its largest paper plants. The company doesn’t even produce printable paper. Instead, it produces corrugated stuff for boxes.

If something as simple as corrugated boxes is in trouble, what does this spell for people like you and me? It couldn’t possibly be good. We’re talking about a sustained collapse that could hit anyone at any time. When International Paper closed its plant, more than a hundred individuals became instantly jobless.

What would you do if you instantly lost your job?

In Venezuela, the only bid for the Stanford Bank was $58 million. Too low for the government’s taste, and so they simply shut down the auction. They plan to reopen the sale of the bank to anyone who would be willing to shell out more than $180 million; the actual price of the bank. Where would all the money go?

Well, the government would be using it to back up the accounts in the bank. To prevent any more problems, the government is going to control the operations of the bank so that it would not follow the cycle of other banks worldwide. The boom and bust cycle does not help the banking system in any way.

Beyond the sad borders of the United States lies another giant. The giant is Europe, and when there’s a territory as large as Europe, a credit crunch is never a positive thing. This is why the European Union itself is planning to correct several large blunders in its banking systems.

Why do they even bother? Well, investors would not come back if the system is faulty. No one would have the courage to drop their money where it could disappear instantly. That’s why within the month, the EU plans to bring back the confidence to stabilize the credit crunch. Everyone is hoping that indeed, the reforms would help. Otherwise, the credit crunch and the associate recession would only deepen.

When one thinks about it, some people or financial groups within the global financial system are safer than others. Investment-wise, some folks are luckier than some. Take for example some creditors in the United States.

What’s their secret? Well for one, these creditors and lenders don’t have to let go of their stocks. That’s the basic mechanism for ailing stock market conditions; when something is amiss, you simply sell your stocks, or you go down with the ailing company or companies.

Some of these strong creditors are being protected; because the protectionism would translate to the safety of the large conglomerates like General Motors. Do you think this is a sustainable response to a worldwide problem?