Loading ...By: Great Iota
The best and brightest in our country are all chirping the same songs. Job market be dammed, the economy will recover anyway. As expected, nearly every company is crushing earnings either because of severe cost cutting measures (layoffs) or the ability to borrow money at 0.25% and leveraging it (Goldman Sachs and friends). Bernanke himself this morning just said, “Unemployment will not moderate until sometime in 1011”. It seems that are leaders are having plans in place. It would appear to me that they believe to keep the economy stable is encouraging 10% layoffs every quarter and 0% borrowing cost for Goldman Sachs so the super rich can become richer. I like this plan!
You got to feel sorry for the poor and middle class in America (at least a little bit). Behind the scenes a class war has started. Only problem is that the poor and middle class don’t even realyze this is a battle of survival (or at least quality of it). Oh, but they well get it soon enough (hopefully before 2011).
Will, if this is the path chosen; folks better adapt to it and remain adaptable. As job losses mount, consumers will cut consumption and corporate revenues will decrease. The only way for corporations to continue to beat estimates will be by continuing layoffs. So here is how I’m expecting this recovery to unfold. I am going to go out on a limb here and say that corporations will not continue layoffs near term. So next earning season is going to be a blood bath! Especially if the market keeps going up until August 17, after that you better join my PPT (Put Protection Team).
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