Recent reports by ADP are reporting positive news on the employment front where 200,000 new jobs were created in the private sector. The news was welcomed as stocks on Wall Street fell the second day in a row, while the Spanish bond auction was ill received by investors. Don’t celebrate too soon because hours after the report surfaced, Yahoo Inc. released news that it will be cutting 2000 jobs from its current work force. The cuts were made in light of declining revenues and intense competition, and hopes to stimulate growth.
Other grim news on the market include a second wave of foreclosures as banks start to play catch up. Unlike the housing crisis not too long ago, these involve everyday hardworking Americans who were able to pay down their prime mortgages previously. Because of the financial meltdown from sub-prime mortgages, everyone was affected, and many lost their jobs. In addition, residents now find that they owed more money to the bank than what their homes are worth. Homeowners are feeling the heat and can only brace themselves for what is to come. The near future doesn’t look too peachy to me, and I’m graduating in a year – God help us all.
- Rui Shan Chin