Sr. K.,
back to our topic about corporate earnings and downward revisions as a forecast of recession....
-----------
Psst: Earnings
This morning Intel cut revenue forecasts.
FedEx did so a couple of days ago.
This is going to continue folks, and earnings warnings are not what you want to see with the indices at multi-year highs.
Inventory is being drawn down and shipments are soft. There will be excuses made for the Intel revision, the foremost being "people are not buying PCs, they're buying phones and tablets."
Uh huh.
The fact of the matter is that China is slowing precipitously, Europe is still in a formal recession, we've been evading recognition of ours with monstrous federal borrowing and we will be forced to stop it soon as well.
We added $5 trillion in debt over the last four years, roughly, to the US Federal Balance sheet and have exactly nothing to show for it. The money was simply blown in buying pacification of the unemployed masses, after we offshored their jobs to China and built up massive and unsustainable trade imbalances on top of the rest.
The last 30 years have been a story of structural imbalance on top of structural imbalance, and all of them suck.
Our day of reckoning is coming -- right now the game of the Administration is to keep the plates spinning in the air until after the election, as a market crash will guarantee an Obama loss -- and The President knows it.
But with a gridlocked Congress that also knows this I'm sure there are plenty of people on the "R" side of the aisle who secretly pray for the blow up to come now rather than later, because given that it is inevitable they'd rather have Mittens than Obama in the left seat.
But I'm not so sure that I'd want to be "elected" captain of an airliner that has one engine on fire and the second is about to eat a whole flock of geese. |
