“Credit stress hits Depression level”

[erik_kosberg]

http://www.denverpost.com/Stories/0,...7%257E,00.html

U.S. corporate debt nearly doubled in the past five years - to $3.9 trillion by the month of May.

U.S. consumers spent that same amount on all services - from haircuts to dog grooming - during 2001.

The burden, already buckling many companies under the load, threatens to send the nation into a prolonged recession.

"We're looking at an economic heart attack in front of us," said John Riley, president of Cornerstone Investment Services, a money management firm in Providence, R.I. "We're faced with owning up to the excesses of the late 1990s."

[frazzledspice]

With the exception of executive salaries, I think that companies have done many things to cut costs. They've laid off employees.
They've raised the cost of their employees' medical insurance. They've cut down on business travel.

They've moved jobs to Mexico.

Most of the things they've done have been at the expense of their employees...

No wonder why they can't get top dollar for their goods and services and are forced into cutthroat price competition.

Laid-off employees are avid savers and bargain hunters.