Pepsi laying off employees to please investors

There was a story from Reuters regarding Pepsi cutting 4000 jobs along with making cuts to the company's pension and 401K programs. The reason given is to be able to save their earnings numbers.

This is exactly the kind of short sightedness that get corporations into bigger trouble. Most companies that let Wall Street analysts dictate their business plans by making sure the earnings numbers come first need new management.

In this particular case, there is wonderment over the economic cost benefit analysis over layoffs versus management bonus' being decreased. It is surprising that Pepsi can feel that cutting pension and 401K matching programs to employees that need them works out better than cutting the enormous bonus packages that are relatively not needed to top executives. This action should show that Pepsi is not deserving of pension investment dollars.

evil empire introduces 401k debit card

Hey everyone

Recently there has been an idea and execution of getting a debit card for your 401K plan. Stay away from that! It is simply another way for the banks to get at your hard earned dollars through fees, fines, and penalties. There is a plethora of articles on the subject with this one from genxfinance as an example.

Speaking of the banks, it has been noted here before how they have been saved by the federal government. I read in the Wall Street Journal today how Citi might be letting go of over 25,000 employees! Can you imagine what the damage might be had the feds not covered their butts?

PBW is trading at the low end of the range.