Anyone counting on a meaningful economic recovery will be greatly disappointed. How do I know? I follow credit, and credit is contracting. Access to credit is being denied at an accelerating pace. Large, well-capitalized companies have no problem finding credit. …
The government has moved in next door, and it ain’t leaving. You could fight it if you want, but soceity wants change. And government is not going away. – Jeff Immelt, CEO, General Electric, in June at the International Economic…
Disney (DIS) reported earnings after the close but the numbers were distorted by an extra week in the current quarter. Therefore, they beat on revenue and earnings but I’m not sure analysts were accounting for the extra week. Revenues and…
But what if the Fed’s efforts to stoke a recovery are merely creating asset bubbles in equities and elsewhere? What if government guarantees—explicit and implicit—are encouraging high-risk investment behavior rather than restoring conditions for normal market returns? What if excess…
Fascinating front page article in today’s Wall Street Journal on central banks around the world intervening to try and prop up the dollar and prevent their currencies from appreciating so much against it: “World Tries To Buck Up Dollar”, The…
Concerns are mounting that efforts by governments and central banks to stoke a recovery will create a nasty side effect: asset bubbles in real-estate, stock and currency markets, especially in Asia. – “Fears Of A New Bubble As Cash Pours In”,…
$140 billion networking goliath Cisco Systems (CSCO) reported 1st quarter fiscal year earnings after the close yesterday. Revenues were off 13% from the year ago period – though they were up 6% from the previous quarter. Net income was off…
A better than expected GDP report is spurring markets higher this morning (3Q GDP Report – from the Bureau of Economic Analysis). Two thirds of the growth was driven by “Motor Vehicles & Parts”, “Residential Fixed Investment” and “Federal Government” – that…
Over the past year, the U.S. government has thrown almost every tool at its disposal toward making the economy grow again. And it has worked, at least for now. The trillion-dollar question for the economy now is: What will happen…
Honeywell (HON), a big, diversified manufacturer, reported earnings this morning. They earned 80 cents a share, beating estimates for 72 cents, but revenues were off 17%, more than $1.5 billion to $7.7 billion. They cut Selling, General & Administrative expenses…