Another 1,000 people are about to find themselves out of work and out of luck. Mattel, the USA's largest toy maker plans to shrink by 3%. 170 of these axed jobs are to come from their headquarters in El Segundo, California and equals about 8% of their management people.
Since Joe and Jane Anyman don't have their HELOCs (not only could they not get a loan, but they don't have equity to use as collateral.) to buy things from China they don't need and can't afford, it seems like they're not buying toys for their kids anymore, either.
Factories in China are going to continue to struggle, as they sit around waiting for orders from America that aren't coming.
Companies like Mattel, who no doubt rely on Chinese factories to manufacture products will also put downward pressure on BDI as they reduce their production to meet the demand in this new post-debt bubble economy.
Related: Wide Wave of Repercussions, Speaking of Shipping
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