I think this is the beginnings of an economy based on perpetual growth and fossil fuel energy running headlong into geological energy constraints. Basically I see an undulatory downward path for the rest of my life. From here out, I think any rallies in our economic condition are going to be met with spiking commodity prices that knock us right back down.
Posted: Fri Apr 18, 2008 8:34 am Post subject: Corporate earnings up again
After a down quarter, it looks like corporate earnings are beating expectations. The season is young, but already big hitters like IBM, Google, Honeywell, and Caterpillar have done well. GE took a hit, as did Citi, but the results were on par with expectations. Many more follow in the coming days. The market is poised for a big gain today.
In some ways I predicted this would happen in 2Q and 3Q--right before the election. I have to believe this is another calm before the storm. I can't possibly believe the underlying recession fears are behind us, but I'm sure the economists will tell us otherwise. What does everyone think about this?
Posted: Fri Apr 18, 2008 9:00 am Post subject: Re: Corporate earnings up again
I agree, its a sham. How in the hell can the market be going up with the low dollar, the Euro is about to hit 1.60. and inflation is at its infancy. I think Obama going to be elected then we will have a Depression,,, and they will blame it on him. He's the fall guy. And we are the suckers
Joined: Aug 26, 2005 Posts: 1009 Location: "Mad as Hell !"
Posted: Fri Apr 18, 2008 9:04 am Post subject: Re: Corporate earnings up again
Prince wrote:
After a down quarter, it looks like corporate earnings are beating expectations. The season is young, but already big hitters like IBM, Google, Honeywell, and Caterpillar have done well. GE took a hit, as did Citi, but the results were on par with expectations. Many more follow in the coming days. The market is poised for a big gain today.
In some ways I predicted this would happen in 2Q and 3Q--right before the election. I have to believe this is another calm before the storm. I can't possibly believe the underlying recession fears are behind us, but I'm sure the economists will tell us otherwise. What does everyone think about this?
Most of the increase in Big Caps is coming from overseas infrastructure plays. The bounce in the market is only a relief rally in which the fundamentals have not changed, but the worse outcome, so far, has not materialized.
The "catch 22" is that as developing nations improve their economic status they will continue to absorb a greater amount of commodities, depleting an already short supply. This year, the Chinese are buying autos at a 1,000 vehicle a day clip. The capitalist model of growth is not sustainable.
The US consumer is still weighed down by the rising cost of energy and food, while wages have remained stagnant since 2000, leaving very little for discretionary expenditures. You only have to look at the recent news from Harley Davidson to see the contraction.
I think the election has little impact right now on the changes taking place. The candidates are not even talking about it, with the exception of the McCain gas tax holiday. There is going to be the ole two step shuffle in the 4th quarter for the election. _________________ The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
... Theodore Roosevelt
Joined: Aug 26, 2005 Posts: 1009 Location: "Mad as Hell !"
Posted: Fri Apr 18, 2008 1:12 pm Post subject: Re: Corporate earnings up again
Plantagenet wrote:
sittinguy wrote:
I agree, its a sham. How in the hell can the market be going up with the low dollar
US manufacturing Companies like Catepillar and Boeing that export benefit from the low dollar.
The market goes up because many investors have been sitting on the sidelines waiting to put their money to work. They can't make any money by putting it under the matress. Buying into a rally no matter how short lived is an opportunity. _________________ The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
... Theodore Roosevelt
Posted: Sat Apr 19, 2008 11:32 pm Post subject: Re: Corporate earnings up again
Corporate earnings are up because real wages are declining. We could have an economic collapse tomorrow and the bastards will still find a way to make a profit; it will simply be at the expense of everyone else.
The top 1% wealthiest of the world's population own over 40% of the world's wealth and acount for 32% of the world's resource consumption, which is more than the bottom 90% of the world's population(which still includes half of the world's "middle class").
Since 1970, productivity per capita has nearly doubled, yet real wages have declined. It now takes two parents working for a family to have a standard of living still reduced from over 30 years ago, even though one parent is producing double what they would have in 1970. So, four times the productivity per family for a lower living standard. Someone is making a lot of money in the meantime, and it is not Joe Sixpack.
This gap will keep on widening. If current trends continue, Americans will live like those in Bangledash so that the corporate execs and politicians can stay rich and profitable. _________________ The unnecessary felling of a tree, perhaps the old growth of centuries, seems to me a crime little short of murder. ~Thomas Jefferson
Joined: Jul 04, 2007 Posts: 2231 Location: The U.S.S.A
Posted: Sun Apr 20, 2008 12:16 am Post subject: Re: Corporate earnings up again
The_Toecutter wrote:
Corporate earnings are up because real wages are declining. We could have an economic collapse tomorrow and the bastards will still find a way to make a profit; it will simply be at the expense of everyone else.
The top 1% wealthiest of the world's population own over 40% of the world's wealth and acount for 32% of the world's resource consumption, which is more than the bottom 90% of the world's population(which still includes half of the world's "middle class").
Since 1970, productivity per capita has nearly doubled, yet real wages have declined. It now takes two parents working for a family to have a standard of living still reduced from over 30 years ago, even though one parent is producing double what they would have in 1970. So, four times the productivity per family for a lower living standard. Someone is making a lot of money in the meantime, and it is not Joe Sixpack.
This gap will keep on widening. If current trends continue, Americans will live like those in Bangledash so that the corporate execs and politicians can stay rich and profitable.
That my friend, is my greatest fear. Living like they do in third world countries, controlled completely by the government and big business and living with 3 families in a farking cardboard box just happy that I can make enough money working 12 farking hours a day to buy a loaf of bread and some fish.
If it even starts to come to that, I am going to john farking rambo up the place.
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He's the fall guy. And we are the suckers
