Will The Implosion Of The Tech Industry Bring Down The Entire U.S. Economy?
Francesco Abbruzzino, The Uncensored Report, LLC
The tech industry has become one of the central pillars of our economy, and tech stocks led the way up during the stock market boom. But now tech stocks have been crashing and many of our biggest tech industry companies have been laying off large numbers of workers. If the strongest sector of our economy continues to rapidly deteriorate in 2023, what will that mean for our weaker sectors? I think that the answer to that question is obvious. The truth is that we are in far bigger trouble than “the experts” realize, but most people still assume that everything will work out just fine somehow.
If economic conditions were really about to “return to normal”, the tech industry would not be laying off thousands upon thousands of workers. The following comes from a CNN article entitled “Silicon Valley layoffs go from bad to worse”…
At Amazon and other tech companies, the second half of last year was marked by hiring freezes, layoffs and other cost-cutting measures at a number of household names in Silicon Valley. But if 2022 was the year the good times ended for these tech companies, 2023 is already shaping up to be a year when people at those companies brace for how much worse things can get.
Did you catch that last part?
Even CNN is admitting that 2023 will be even worse for the tech industry than 2022 was.
Of course last year was really, really bad for the tech industry. According to Challenger, Gray & Christmas, tech layoffs “were up 649% in 2022”.
I was floored when I first saw that figure.
649 percent is a pretty big shift.
And one prominent private equity CEO just warned Fox Business that we could see a “bloodbath” for tech stocks during the months ahead…
In an interview with FOX Business on Friday, Eric Schiffer, CEO of the private equity firm, The Patriarch Organization, said: “Because tech is so oversold, there might be potential exits for a limited short-term bear rally, but there is a danger facing shareholders.”
“Shareholders should brace themselves for a deeper brutal tech bloodbath driven by the Fed and its ‘Terminator’ like mission to raise rates and wipe out inflation,” he warned. “Many tech companies will enact job carnage in the first quarter, with Salesforce and Amazon just the start.”
The tech-heavy Nasdaq is already down by about a third from the peak of the market, and trillions of tech stock wealth has already been wiped out.
So what will things look like if we actually see another “bloodbath” for tech stocks this year?
At this point, I don’t think that most Americans realize what is coming.