I think his point is to criticize those who are slamming you, LostCat, for their attempt to discredit you based on the fact that your contribution hasn’t proven perfectly accurate.
That’s pretty weak in my book, also.
What’s to say that a deal wasn’t struck in the last couple weeks that changed the plans that were in place then? What’s to say that this posting didn’t contribute to that change?
LostCat, what I’m saying is from an employee and even business standpoint, the difference between laying off 1/3rd or 1/2 the workforce and closing the doors is largely a technicality.
They are arguing that they aren’t closing.
You are pointing out that they aren’t making money and going to be laying off virtually everybody.
So in the end, if they layoff 10% of the staff, that’s minor correction, call it a ‘soft-landing’. If they layoff a 1/4, 1/3 or more that isn’t trimming, that’s bare survival. In effect, the entity that was WMC during the boom is dead.
Having seen the mortgage markets contract in the past, I can tell you from experience that this is just the first round of layoffs. This lender is attempting to reconfigure for competing outside of it’s primary niche. It probably won’t be successful at that because they have no experience in operating in those markets and no momentum to carry them through the transition. As a company entity they may or may not survive, but if they do it won’t be in their current visage as a subprime lender.
Get your facts straight on WMC. GE bought WMC in July 2004 and WMC’s CEO, Amy Brandt signed a 3 year commitment to stay on board at that time. She resigned as of 12/31/06 (2.5 yrs into her contract). If you are going to tell the story, tell it right.
