What America's CEOs Really Think In One Chart

Tyler Durden's picture

Equity markets will ebb and flow (mostly flow it seems) at the whim of central planners; and employment statistics will me X-12'd into whatever cognitive bias is required for the status quo to be maintained; but one thing that is hard to hide (harder still with Bloomberg's help) is the reality of job cut announcements. Over the past few years, there is one pronounced reality that has occurred in front of any major fiscal or monetary stimulus-related event - a huge rise in North American job cuts. It would appear, given the data below, that CEOs are wise in the ways of just-in-time only fix it when its totally broken policy-making and have front-run every major event with huge layoffs. To wit, since the start of September, announced layoffs in North American firms have soared to levels not seen since the debt-ceiling-debacle of last year (all the while - claims and the unemployment rate continue to fall). Cautiously optimistic? not!


CEOs simply do not, in reality, strategize on hope - its simple, lay off first, hope second!


Evidently - North American CEOs are not hopeful!


Charts: <LOSS> via Bloomberg

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lolmao500's picture

This obviously calls for more printing!

Bobbyrib's picture

More propaganda please.

CEO's are influenced by many factors, but I am convinced the primary factor is "how big will my next bonus check be?" You really think these CEO's of public companies give a shit about their companies, or the United States of America? If you do I got a bridge to sell you cheap. If they gave a shit about the future of either, they would not have sent all of the middle class jobs overseas thereby giving away the middle class' wealth to other countries. It's painfully obvious, the US consumer is finally starting to realize just how fucked the country is and CEO's are cutting jobs so they can remain profitable and don't fuck up their next bonus check. They gave away the wealth of the fools who kept our economy going by buying their useless products.

AynRandFan's picture

What crap. Funny how capitalism worked to give us the highest standard of living and now folks like you are ready to hand it all over to a government bureaucrat. Yeah, CEO's are motivated by money. So what? Rein them in but don't trash the private sector for making economically wise decisions in response to union extortion. Where are the outrageous profits from outsourcing? Oh yeah, there aren't any because American companies are competing with foreign corporations that use local cheap labor.

CloseToTheEdge's picture

 Competition is a Sin.

J.D. Rockefeller



LetThemEatRand's picture

American companies are competing with foreign corporations that use local cheap labor because of your failed ideology, AynRandFan.   Free trade etc.   The CEOs are keeping the profits because that is what oligarchs do.  Ask the 400 Americans that have more wealth than 1/2 of the entire American population combined.  Idiot.

AynRandFan's picture

The alternative to free trade is tariffs. Idiot.

Bobbyrib's picture


It's werid that you haven't heard the term "record profits." I guess you don't watch CNBS at all (who I am kidding? You probably follow Joe Kernen's tweets). I never said anything about the government doing anything about outsourcing, you just assumed that that was my position. I would rather see folks not buy the crap being produced by today's multi-nationals. I had no idea white collar workers in the US had vast unions that were bankrupting the private sector. As soon as you can provide a link I may be able to learn more about it.

AynRandFan's picture

American manufacturing was bankrupted by blue collar wages and benefits, or didn't you know that? You are right about one thing, i had to assume your rant was based on some idea other than hate. Guess i was wrong. So, if people didnt buy the crap produced by today's multinationals, how would that help our employment? It's popular to demonize the super rich, but it's just a distraction at best and a substitution for a coherent economic philosophy at worst.

123dobryden's picture

why swiss are able to hold their manuf. base? with their wages?

dexter_morgan's picture

You may want to take a peek at the book "Shadowbosses" to grasp how the unions have mutated since the 70's. Yes, only 7% or so of workers in private sector are unionized, but 46% of workers in state, municipal, and federal jobs are unionized and that is growing fast - and they are almost all white collar workers.

Why do you think unions are exempt from cadillac plan taxation under so-called Obamacare?


Acet's picture

I'm afraid that what worked to "give us the highest standard of living" in the last 1 or 2 decades was getting money today in exchange for paying back that money tomorrow, with interest. It's like those good for nothing neighbours that got a $100k second-mortgage and wasted it all in fast cars, booze, luxury vacations and consumer electronics.

Lo-and-behold, it's now tomorrow, the good for nothing neighbours lost their house and we're all paying up. When this is all done and over, the standards of living of most people in the West will be back below those in the 70s.

This wouldn't be too bad if the upsides and downsides were evenly spread to everybody. In practice that's not what's happening - a minority got most of the upside (since the 90s, the real income of most Americans has been going DOWN, not up) and now it's not them but everybody else that is getting most of the downside (remember the good for nothing neighbours: they partied all through the 90s and now, thanks to State money and QE they didn't actually loose their house and more, they're getting social security money - all of which is coming from your taxes and even, through devaluation, from your pension and your savings).

This is the end game for Capitalism: when those that accumulated most of the capital (and those whose job is to move capital around) use that capital to buy rules and regulators and, freed from the need to compete by the artificial barriers to entry created by buying the rules, proceed to prey on the rest of society.

Essential Nexus's picture

"Every CEO is only externally motivated by money" - Quite a nuanced view you have there.

vinayjha's picture

CEO think about their bonus first. President have to worry about fiscal cliff.

http://stks.co/nDJb Everything you need to know for Oct 26th trading.

Dr. Engali's picture

It's all good the adminstration is going to compensate defense contractors for breaking the law and violating the warn act if they wait until after the election to announce lay-offs;


worbsid's picture

Obama can do anything he wants as long as no one yells too loud.  The mesmerized sheeple don't care.  He can take you out and just say you were a terrorist.  TS amigo.

AGuy's picture

"Obama can do anything he wants as long as no one yells too loud."

And probably refusing to honor his promise to comensate them after the election, especially if he loses.


ebworthen's picture

CEO's calling for a "solution" to the fiscal cliff.

What they want is an end to unemployment and SNAP so they can pay $9 an hour part time no benefits to maintain their bling slave factories and increase their profits.

They don't want to spend five minutes training anyone, and want mules, not people.

Bunch of fucking vampires just like the rest of Wall Street and Washington.

Tear the ponzi down, TEAR IT DOWN.

Metalredneck's picture

i thought that was the reason for the "War on Drugs" and all the for-profit prisons.

AynRandFan's picture

I would suppose most of us never thought we would reach the end point of monetary policy, where the Fed becomes powerless to stimulate investment. But, that's what it looks like has happened.

TeamDepends's picture

Come on, you didn't see this coming?

HermesHiccups's picture

I believe the majority of the country (and the non ZH readers) have been victims of "Financial Water Torture" since 2008 the effort to keep your head above water has been dragging on the majority of the population for 4 years pecking away slowly on peoples finances as well as their hope and aspirations. There were moments of hope, a refinance that lowered your mortgage payment, a reduction in the payroll tax that gave you a little bit more to take home. The macro headwinds in my opinion are just way bigger stagnant incomes higher taxes, higher food, gas, etc. I think there are very few people out there who feel they are really making progress. Everyone is fighting gravity and as we know gravity will ultimately win drop by drop we get worn down and one by one more and more people are saying "Fuck It' and that is why the economy will never make out of escape velocity in its current form and slowly as the "Fuck Its" grow and hit the Pareto Principal if not sooner the whole thing will come down. I can not wait for that day!

alien-IQ's picture

Does what "America's CEO's" really think really matter?

Isn't listening to what they really think at least part of the reason why things are so seemingly irreparably fucked?

TeddyBear's picture

Tax free trade not us...

Jobs will move here to save taxes.

We tried free trade and it did not work, Time to end it.

Schlomo Bergstein's picture

Job loss announcements soaring while the unemployment rate falls? What kind of Obama voodoo is this?

RunningMan's picture

In prior eras, peoples found cheap labor as slaves. Sometimes brought them back to country (onshoring?). Since slavery is illegal, we have a modern form of economic slavery, with some notable differences. We send the low cost labor work overseas, but there that labor lives alongside others of like incomes, so less disparity than having to see them in poverty locally. There are still cracks in the system, such as when there isn't enough work or money, then we have a business class that still wants cheap labor, but eventually no one to buy the stuff unless you employ those in the middle. This huge monetary experiment - the largest in human history, and without precedent - merely delayed the depression, and may have made a global economic catastrophe inevitable.  I am more frightened now than in October of 2008.

Jam Akin's picture

What is so hard to understand here?  CEOs and their leadership teams manage to quarterly earnings expectations to keep the stock price elevated.  Much of CEO wealth is in the form of stock or options.  Annual bonus is secondary.  If revenue looks questionable cut costs to keep earnings ahead of expectation to preserve wealth.  QED: a reliable indicator is born.

Yes_Questions's picture



CEO's are only as good as their last quarter generally and should be seen and not heard.

The only ones of import are those that innovate, do something of measurably positive value in the larger universe of sentient beings: not just within the myopic world of equities, profit margins.