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I can see the headlines now....
"Wall Street Reacts to the Release of Luds 2009 Budget"
The NYPE (New York Plug Exchange) took a major hit yesterday as Luds released his 2009 budget. with announcements of a shift in capital expenditures drifting towards Real Estate and a 50-75% decrease in plug investments the plug world is reeling from the news. This has left current plug manufacturers with a huge inventory surplus that does not bode well for the coming year.
The news could have a ripple effect to other industries as well. Lumber and Timber industries will have to slow production by at least 20% which could lead to a huge reduction in the Workforce. VMC has already announced that it will be down-sizing their work force by 10% due to this news.
The CEO's of some of the Major Plug Manufacturers are already on their way to Washington to speak to Congress. They are trying to convince them to put together some sort of Bailout plan, rumored to be in the neighborhood of $20B, to help them restructure and ride out this sudden turn in the market.
Larry Wentworth, CEO of Bigfish Bait Company, said that "You try and adjust your production for fluctuations in the market but it is next to impossible to absorb an almost 50% decrease in Consumer Purchases.
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