"Countrywide will cut up to 12,000 jobs": Is this any indication of what's in store for the economy?

Question

"Countrywide to Cut Up to 12,000 Jobs..."
http://biz.yahoo.com/ap/070907/countrywide_job_cuts.html?.v=4
"...because it expects new mortgages to fall about 25 percent in 2008 from this year's levels"

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Does a 25% decline in mortgages mean anything to the economy?
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Answer 1

it's just stunning to me that our economy is based on b.s. loans to customers with bad credit.

but it apparantly is.

consumer confidence is on the decline - i would guess because there has been a deep divide between what the govt is stating that the condition of the economy is and the perception of those of us paying the bills.

what i love is when i hear govt economists stating that it's bad for the economy for americans to save money.

well i chopped up ALL of my credit cards more than a year ago and only use my ATM cards.

i purchased my car for cash and rent an apartment.

this means that i have absolutely NO DEBT and can actually save aggressively for my retirement.

good for me, but bad for the economy?

not likely...

Answer 2

Probably about the same affect as the dot com bust in the 90's. Economies cant stay on top forever. They go up and down. People will always need houses. How much they are willing to pay for them is a different matter. But there is no way the housing market will ever completely go under.

Answer 3

Mororolla cut 4000 jobs this year
Intel cut 10,500
Xeorox nearly 1000
Johnson and Johnson - nealy 5000
there have actually been over 100 thousand cut in the financial industry this year
Pfizeris eliminating 10,000 jobs, 10 percent of its work force. Merck is shedding 7,000 jobs
AstraZeneca is slashing 7,600 positions
Schering-Plough has furloughed about 1,100 manufacturing workers

this list goes on and on and on. The irony of all this is the number of posts that talk about how we have this "booming" economy.

and yes, a 25% decrease in mortgages meas a lot in THIS borrowed economy.

Answer 4

not in the long run as the market has dips and rises..some of my more affluent friends have been smiling and buying and buying ....i wish i could afford to do so myself.

12,000 is not that many really when 95% of those wanting jobs have jobs. i just wish the pay were better. nothing has been as good as pre 1986 when it all really seem to start which incidently is about the time the globalization agenda was started..wonder if there is a correlation there or is it just a coincidence?

Answer 5

You think companies laying people off is something new?

Countrywide is certainly the poster boy for the sub-prime debacle, though. If there's any justice, it would be left to sink. More likely, it'll be bailed out.

Answer 6

Today 4000 jobs were reported cut. First time in the past 48 months for that to occur.

It is a trend? Not likely with the major Holidays coming up in the near future.

Thanks for the question.

Answer 7

Prolonged recession with recovery in late 2009 early 2010 unless Americans start to save and then think depression.

Answer 8

It is just the start Chi Guy.

Look at the labor numbers sans government jobs over the last four years. It shows an accelerating decline.

Answer 9

If one would turn off Fox news and stick their head out into reality, the low but steady hiss that is being heard would be the balloon of economic growth deflating.

Answer 10

Many of the folks at country wide worked on commission only basis anyway, so its just part of the business. They were also one of the highest closing costs in the business. This is no big deal.