| | | | February Unemployment?
First, don’t miss today’s Daily Chart Setup trade idea down lower in this newsletter.
The monthly non-farm payrolls and unemployment rate numbers hit before the market open today. This will be the first report.
Come join me as we dive in and see what’s moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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Musk’s Cost-Cutting Playbook: Does It Work for Governments?
When Elon Musk decides there’s too much waste in a company, he doesn’t hesitate — he slashes and burns until the problem is gone. Tesla (TSLA) is the perfect example.
The last time he went on a cost-cutting spree, he eliminated the entire Supercharger team. Then — surprise — problems started popping up, and he had to hire some of them back.
That’s how Musk operates. Quick, aggressive cuts to fix inefficiencies, but sometimes those cuts create bigger problems that don’t have an easy fix. The government is flirting with that same approach, but here’s the difference: When you cut a corporate department, you can usually hire people back if things go sideways.
When you cut government jobs — especially ones tied to massive bureaucratic systems — those positions don’t just magically reappear.
Right now, the government is offering buyouts, and 40,000 employees have taken them so far. Sounds like a big number — until you consider that around 41 million people work for the government in some capacity. That’s barely a drop in the bucket.
So what happens if they go further? If the cuts start biting deeper into the system?
It’s the same problem Musk ran into at Tesla — but on a much larger scale. Governments don’t run like corporations. If you fire too many people too fast, essential services get disrupted, and the ripple effects can be massive. It’s not just about trimming the fat — it’s about making sure you don’t hit bone in the process.
Nobody knows how this will play out. We’ve never seen the U.S. government attempt this level of cost-cutting before. Will it streamline operations and get rid of wasteful spending? Maybe. Or will it end up creating long-term problems that can’t be easily reversed? That’s the real question.
We’ll see how it unfolds. If nothing else, it’ll be entertaining.
Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube!
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