Proctor & Gamble To Cut 5,700 Jobs In Restructuring

Former funnyman and current Minnesota Senator Al Franken should have titled his well known book, Lies, and the Lying Economic Reporters Who Tell Them. Because while those who are well paid to spew such nonsense continue to beat the drum proclaiming recovery, news articles continue to appear daily which indicate that they are bald faced liars. Here is one such story that appeared yesterday on the website of Liars Central, CNBC:

Consumer products maker Procter & Gamble Inc. said Thursday it plans to cut 5,700 jobs over the next year and a half as part of a cost-cutting plan.

Procter & Gamble says it plans to save $10 billion by the end of the fiscal year ending in June 2016.

And what, pray tell, was the reasoning behind this rather drastic decision?

The world's largest consumer products maker, which makes items ranging Luvs diapers, Bounty paper towels and Charmin toilet paper, has been experienced slowing sales volume in the U.S. as consumers continue to spend cautiously. The company also has faced high costs for fuel, packaging and other commodities.

You don't say. Gee, maybe a few CNBC talking heads ought to start actually reading their own damn news stories.

But here is the real kick in the nuts for the employees who are going to get the axe:

Shares rose $1.56, or 2.4 percent, to $66.

I'm not an investor, and haven't owned stocks since I completely divested back in the mid-2000s, but I have a simple question I hope someone can answer. Why is it that when companies announce that they are cutting jobs that their stock usually goes up, and yet much of the boost during this latest bull market run has come from the supposedly declining unemployment figures? Seems kind of schizophrenic to me. It would seem pretty obvious that when corporate America has finally finished laying off its very last employee, there won't be anyone left who can afford to buy the diapers, paper towels and toilet paper.

But whatever. Rally on, Garth.


Bonus: "Live in the now!"