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Wednesday, February 9, 2011

Real Reason Corporate Profits are Rising

I enjoy looking at the blog, 'Market Talk'.  I find it very honest and it talks about economic issues in a realistic way, rather than flowery prose spinning 'recovery'.

This is quite an accomplishment given that the writer, Paul Vigna, works for the Wall St. Journal, a mainstream news source so subjective when it comes to openly rooting for corporations and the stock markets, that the newspaper should have a mascot of a cheerleader with pom-poms.  But I digress...

Here's a snippet from the 'Market Talk' blog which succinctly explains why corporate profits are rising in this dreadful economy:

"There are a couple of reasons why corporate America looks so healthy these days, and it has nothing to do with the state of the consumer.  The main source of revenue growth for corporations is overseas sales... That plus a ruthless obsession with cost-cutting have been the two drivers of corporate America’s recovery (you could add, too, official government policy to make banks profitable again. Okay, three, three main drivers.)...

Do not kid yourself; the American economy is still digging its way out of a deep, deep hole, and it will be some time before it’s capable of supporting the populace on its own...

Mark this well: the fact that the Fed still has its fed funds rate at zero, zero, tells you everything you need to know about how the Fed really feels about the economy. Absolutely everything.   The economy will not recover until you see millions of jobs being created, jobs that pay good, solid, living wages, the kind of jobs with which you can raise a family. Until then, it’s all just smoke and mirrors."

~ Well said 'Market Talk'...   Bravissimo~  @--}---

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