July 13, 2009

The Point Is That This Started Happening Over a Year Ago; Now It’s the POR (Pelosi-Obama-Reid) ‘Repression’

Filed under: Economy,Taxes & Government — Tom @ 10:54 am

From Doug Ross, in an e-mail he received from a mergers and acquisitions specialist:

My clients are all entrepreneurs having built successful businesses with sales of $5 million to $50 million. My prospective buyers are typically companies with sales of $50 million to $200 million. Every one of these companies (buyers and sellers) today shares these common denominators:

1. Their businesses are down 10, 20% or more.
2. They have either laid off staff or have reduced hours to 4-day weeks trying to keep key staff.
3. They have reduced their own salaries and in many cases have implemented “cross the board” salary reductions.
4. They (for the first time in their lives) have no ability to forecast beyond 4 weeks.
5. They see nothing good on the horizon that would benefit them re: sales, cost reduction, efficiency, etc.
6. In other words, they are experiencing a loss of optimism and any positive outlook on the future.

….. I am so outraged as to what is happening to our country. This is no longer a political issue [because] we will all lose. We are all casualties of the new paradigm. There will be many more as we continue into a morass that will take generations to recover, if we can. Be it “Cap and Trade”; government-run health care; TARP; bailouts; “stimulus”; business takeovers, etc.; our future is being controlled by bureaucrats and politicians who never, ever, ever ran a business and knew the “gut-check” of filling out and paying their “941’s”.

How could they know how to create a job? Throwing billions at states and municipalities with payoffs to unions, lobbyists and partisan sectors? Sadly, the worst is yet to come with job losses, cost increases, inflation, etc.

Doug’s e-mailer describes the POR (Pelosi-Obama-Reid) Economy Nancy Pelosi, Barack Obama, and Harry Reid promised/threatened, and that yours truly was able to recognize (because I’ve worked with and for businesses like the ones Doug’s e-mailer described) over a year ago. Businesspeople, entrepreneurs, and investors who picked up on the possible extent of the horrors the trio were promising/threatening at the time began reacting preemptively in anticipation of the conditions just described, taking steps they normally take when signs of a serious recession as normal people define it begins before the serious recession actually began (though the third quarter of 2008 was negative at -0.5%, it didn’t get really serious until the fourth quarter).

The ones who caught it early are the lucky (actually, prescient) ones. Those who didn’t see it soon enough are much worse off, and are sorely regretting not paying attention more closely. Nonetheless, in Month 13 of the POR Economy, now the POR Recession — no, with credit to Mark Levin, make that the POR Repression — we’re all stuck in the horrid mess.

Doug continues with his own add-on:

Who could possibly hire in this environment? The economy is flat on its back because Obama and the Democrats put it there; and their policies continue to suck the life out of the most productive members of society.

New regulations, new taxes, new health benefit dictates, forced unionization… who could possibly be hopeful in this sort of environment?

….. I’ll say it for the record: Obama is a failed president and his is a failed presidency. His Statist ideology has failed in every place and every time it’s been tried. And it’s failing now, as anyone with half a brain knew it would.

…. and they think they’re just warming up.

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