J.P. Morgan is now saying that they will be cutting jobs at Washington Mutual.  This is on top of job cuts at their other recent acquisitions, including Bear Stearns. 

This news highlights a new trend toward profitability - significant job cuts.  The continued cuts are sure to significantly impact the economy.  And the timing could not be worse.  This holiday has already been significantly impacted by the stock market and low consumer confidence.  The job cuts are actual jobs and real families who will have to cut down at a time when they are expected to spend.

There is a threat that this holiday will be a disaster and significantly underperform even the worst of expectations.  The word out on the street from what I've been hearing is that there are "no significant sales" for Black Friday.  The crowds will be out there but the situation is cautious.  The American consumer, the heartbeat of the world, is suddenly cutting down.

Of course this could be a temporary hiccup.  But there is no doubt that the timing of this hiccup couldd not be at a more vulnerable time for the valuations of ccompanies.

Meanwhile, J.P. Morgan will continue to cut jobs to impact their bottom line.  The job cuts are part of a global story that everyone is well aware of - the financial meltdown.  While the meltdown is happening it is crucial to be prepared for disasterous earnings that are worse than expected.  Analysts have a tendency to underestimate the impact of events like this.  Look for them to be in shock very soon.  The short term disaster in many cases is likely already priced in.  But the fear is that it turns into a long term disaster.