Fed’s “Solid” Expansion Called Into Question as Big Name Retailers Stampede into Bankruptcy
Source: Wall Street on Parad, by Pam Martens and Russ Martens
It was just last Wednesday that the U.S. central bank, the Federal Reserve, released its monetary policy statement and reassured the markets that “economic activity has been expanding at a solid pace” with “strong job gains.” This cheery U.S. news came on the heels of recent action by seven foreign central banks to slash interest rates and/or pump more stimulus funds to head off an economic train wreck around the rest of the globe.
The Fed statement also came on the heels of thousands of job cut announcements by companies like American Express (4,000), Schlumberger (9,000), IBM (at least 2,000), Baker Hughes (7,000), and Coca Cola (1,600 to 1,800).
What’s happening among U.S. retailers is also not suggesting strong job gains. Since December, there has been a steady pace of bankruptcy filings and announcements by retailers to close all…
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