Actually, restructuring is no longer limited to a “return to profitability”, it now takes place to increase profits. Maximizing profits is all the stock markets care about, so everyone is consolidating and moving facilities to the cheapest area they can find.
All of the slack and redundancy in the markets that could cushion a shock have been squeezed out, so that even minor glitches have an immediate effect.
]]>The other fact is, we have just had 2 interest rate reductions since Rudd became PM. However, unemployment is rising due to several multinationals (mainly US based) closing shop here in the past couple months. They are desperate to cut costs. That how come we know just how bad things are for US companies. You don’t close plants when you are making profits. 🙂 Of course, they call it *restructuring* LOL
Everyone always wants to blame someone else for their own problems. Especially politicians.
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