41,432 in planned cuts in June, up 11.6% from May and 5.3% vs. a year earlier, according to Challenger, Gray & Christmas.
Meanwhile, state and local governments have cut 142,000 jobs this year, The WSJ reports, and Wall Street is braced for another round of cutbacks. This week, Goldman Sachs announced plans to let go 1000 fixed-income traders.
If these trends continue, we may soon be talking about losses in the monthly employment data -- not just disappointing growth, says Howard Davidowitz, CEO of Davidowitz & Associates
"Everything in business is confidence," Davidowitz says. "You lose confidence and businesses can't deal with that [and] who could have confidence with what's going on in Washington?"
A Bunch of Morons in Washington": Howard Davidowitz Handicaps the Debt Ceiling Debate)
Still, the restructuring expert is a longtime and vocal critic of President Obama: "There has never been in a situation in my lifetime where a guy increases the debt by 40%, GDP growth is on the way down, Food Stamps are up, millions more are unemployed -- and to accomplish this we spent $4 trillion."
But it's an open question whether any president or policy mix could do much to revive the economy after the bursting of the credit bubble.
In This Time is Different, co-authors Ken Rogoff and Carmen Reinhart demonstrate that financial crises are typically followed by severe recessions, slow recoveries, subpar growth and greater frequency of recessions in the decade following the crisis. (See: Bernanke In Denial About Economy's Fate, Vincent Reinhart Says)
"No one believes the economy, Obama or not, is going to improve," my Breakout colleague Jeff Macke says in the accompanying clip. "Time [is] the only thing that heals."
- Video: Obama: Boehner walking from ‘extraordinarily fair’ debt dealPresident Obama addresses the current state of US debt talks by announcing that House Speaker John Boehner has withdrawn from the negotiations. During the statement, Obama makes a strong challenge to Boehner to come up with a solution to avoid US defaults on owed debts. (NBC News)[Friday, July 22, 2011 5:38:09 PM]
- Video: Boehner: Obama’s late tax adds stalled debt dealHouse Speaker John Boehner addresses the current state of the US debt talks and responds to criticism voiced by President Obama. (NBC News)[Friday, July 22, 2011 6:34:19 PM]
- Video: US economy a likely casualty in GOP war on reality
What do you think?
Aaron Task is the host of The Daily Ticker. You can follow him on Twitter at @atask or email him at email@example.com