Have not posted in quite sometime, but things are getting bleaker by the day. Circuit City is down,
GM share is quickly moving to zero (in fact the price target from the Barclays analyst was reported as zero in an earlier report, maybe an error) and Roubini is till shouting hoarse that things will be bad all the way into 2010 now.
Back home, the steel sector is beginning the first of the large scale job cuts/forced holidays/pay cuts, not long before it starts creeping across industries. Recruitment at campuses is down, from what I can glean from the HR junta.
IT surprisingly seems to be holding out, infact folks at CTS and TCS are talking about more projects coming through, quite counter intuitive tho'.
What to make of it: Circuit City is from what I have read is good business, but lack of availability of credit can prohibit the company form putting up new goods in stores and since electronic goods depreciate very fast, the existing inventory would get repriced and costly to hold even with a small fall in sales.
For the India story there is only one option, go full stream Keynes, no better time to put money into those infrastructure projects. Will stabilize economy and provide jobs across the sector. China has taken the lead here too and that too made a big scene about it.
Brace yourself for more. One of my analyst friends wants to remove all references to the word downturn from the dictionary, I tend to agree with her.