Layoffs are sinking families already burdened by high debt. The bear market has clawed workers into postponing retirements. Retirees struggle with household budgets on fixed incomes withered by low interest rates.
Most business cycles create winners and losers.
Americans are going into the downturn with record debt. More than 200,000 layoffs have been announced since Sept. 11, and the numbers are expected to rise. Wednesday, Motorola said it will cut 7,000 more jobs. Retirees who rely on interest from bank CDs and money market funds have seen their income sliced in half since last year. Those planning to use stock-market investments to pay for college or fund retirement have seen their portfolios slashed in the past year.