Surprise: U.S. Corporations Pulling Back Investments
Nov 19, 2012 11:13 AM EST
Everyone knows by the now there is a fiscal cliff looming and everyone knows President Obama wants to raise taxes on "millionaires and billionaires," which is actually anyone making more than $250,000 per year. With the recent talk from Obama, saying there is no way he will budge on a tax increase for the country's "rich," corporations are naturally pulling back their investments and cutting workers.
U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery.
Half of the nation's 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.
Nationwide, business investment in equipment and software—a measure of economic vitality in the corporate sector—stalled in the third quarter for the first time since early 2009. Corporate investment in new buildings has declined.
Corporate executives say they are slowing or delaying big projects to protect profits amid easing demand and rising uncertainty. Uncertainty around the U.S. elections and federal budget policies also appear among the factors driving the investment pullback since midyear. It is unclear whether Washington will avert the so-called fiscal cliff, tax increases and spending cuts scheduled to begin Jan. 2.
Companies fear that failure to resolve the fiscal cliff will tip the economy back into recession by sapping consumer spending, damaging investor confidence and eating into corporate profits. A deal to avert the cliff could include tax-code changes, such as revamping tax breaks or rates, that hurt specific sectors.
Private investors have also pulled their money out of the stock market in recent weeks and the DOW has plunged 1000 points since Obama's reelection. The day after the election was the worst day of the year for the DOW. On top of a tax increase, companies are also preparing for ObamaCare to kick in, which requires them to hire and invest less.
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Tags: Jobs and Economy , corporations , corporate taxes , fiscal cliff
 Katie Pavlich
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nodeamass Wrote: 27 minutes ago (5:13 PM)
Other businesses use massive propaganda(advertising) to convince people to buy a product that has a value a hundredth of it's cost. Cosmetics , the raw materials of which are pennies vs the retail cost, or sodas, are great examples of how massive propagansda(advertising) convinces people to buy worthless or cheap stuff at high prices. See, it's easy understanding how business works. Make a product and use marketing , hype, regulations, lobbyists, or anything else(kneecapping) to sell that product at a value many times its production cost.
Sometimes the business needs to hire slave/child labor like many of the cocoa makers which end up as chocolate. It helps to operate your business where there are murderous dictators(partners)
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pppqq Wrote: 31 minutes ago (5:08 PM)
It's about time this nation gets what it votes for. You voted for Obama now grit your teeth and bend over, he's got something for you.
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Kerry62 Wrote: 45 minutes ago (4:54 PM)
It is pretty obvious that nodeamass is a lazy freeloader-on welfare or a college professor because he has no idea how businesses operate and he has no appreciation for honesty in business.
The reason we have hoodlum businesses in the US is people like nodeamass who vote for crooks like Obama, who in trun protect this corporate riff-raf (pond scum) from prosecution.
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nodeamass Wrote: 40 minutes ago (4:59 PM)
I know how businesses operate. Being the know all genius you obviously identify yourself as, certainly you have heard about those wonderful entrepreneurs called 'patent trolls', who look for companies who are selling patenets which produced nothing, then the trolls buy up the patents and extort legitimate technology companies by forcing them to pay royalties or filing a lawsuit in patent troll friendly locations like Marshall, Texas. The patent troll attorneys are very successful entrepreneurs, but , unfortunately for REAL technology companies, they are forced to pay the patent trolls.
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Buck O Wrote: 34 minutes ago (5:06 PM)
So what?
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Kerry62 Wrote: 50 minutes ago (4:50 PM)
I see nodeamas is still all screwed up. He lists a number of criminal businesses responsible for much of our recession but he failed to mention that every single one of the hoodlum corps gave only to Obama and every one has been protected from federal prosecution by Obama.
Conservatives have been calling for prosecution and imprisonment for the management of all these looters and pillagers, including fannie Mae and freddie mac (the worst of the criminals), but to no avail.
Had Romeny won the election these hoodlums were looking at long prison sentences but not now.
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nodeamass Wrote: 45 minutes ago (4:55 PM)
Obama is protecting the sociopaths. He has a different strategy, pretending to be a progressive when the opposite is the case. This is why not a single sociopath who destroyed the economy with massive fraud has been prosecuted.
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Kerry62 Wrote: 41 minutes ago (4:59 PM)
So why do you support Obama?
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Jim Weber Wrote: 56 minutes ago (4:44 PM)
Must jump on a conference call. After all, I still have a business to run and I am a committed Capitalist.
Nodeamass, enjoy your delusions.
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nodeamass Wrote: 54 minutes ago (4:45 PM)
Enjoy your sociopath CEO buds!
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spartacus3344 Wrote: 51 minutes ago (4:49 PM)
Yup, you're a total fanatic, your parents must be so proud....
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Jim Weber Wrote: 1 hour ago (4:36 PM)
Nodeamass writes: Ok Jim, here's the problem. Capitalism is failing the great majority of people on the planet. Despite the illusions of prosperity for a relative few, it has failed to create the utopia that it's boosters claim. So when you talk about a corporation moving to a place where it has a competitive advantage, you are talking about the decision of the 1%ers determining the fate of everyone in terms of how the economy works."
Node, this is utter foolishness. Another false premise cements your position as a FOOL. The problems in Europe and the US are due to Socialist Policies and Over-regulation......Spending too much of other people's money and Croney Capitalism, a/k/a Fascism.
Your analysis is completely flawed.
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Jim Weber Wrote: 1 hour ago (4:40 PM)
Besides, free market economics does not promise a utopia. That is the realm of liberals.
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nodeamass Wrote: 58 minutes ago (4:42 PM)
Jim, trillions were frittered away by all those wealthy businesses like Merrill Lynch, BunkoAmerica, Wells Fargo, AIG, GoldmanSachs, and others of this type. Those finance and securities hucksters along with their collaborating bond rating agency friends like Moodys, S&P, sold junk securities to pensions and city funds and others worldwide, using their AAA stamp of security. Most would call this by the name of FRAUD, but you clownies admire and worship such activities, being the sociopaths you are, and now want to blame the victims of the fraudsters.
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Smitty41inPB Wrote: 1 hour ago (4:06 PM)
ObamaCare: The efficiency of the DMV... With the compassion of the IRS
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spartacus3344 Wrote: 1 hour ago (4:28 PM)
Well put....
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Jim Weber Wrote: 1 hour ago (4:04 PM)
A California Liberal lecturing us on Economics. Priceless.
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nodeamass Wrote: 1 hour ago (4:08 PM)
Jim, is that your strongest counter argument to this: businessinsider.com
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Jim Weber Wrote: 1 hour ago (4:11 PM)
Node, maybe I will read that one day.....maybe not. There are too many Sober Economic Papers that say something different, by respected Economists.
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Jim Weber Wrote: 1 hour ago (3:55 PM)
Nodeamass, you obviously have a lot of time on your hands. So, you should go out and buy "The Forgotten Man" by Amity Shlaes. It will provide you with a useful education and may help keep your mind young and vibrant.
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nodeamass Wrote: 1 hour ago (3:58 PM)
Jim, I am retired, and enjoy reading insane posts you guys make. You amuse me, like a clown!
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Jim Weber Wrote: 1 hour ago (4:00 PM)
Well, you should see your doctor as I think Dementia is in you future.
So, why are you ashamed to admit that you are a woman?
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Jim Weber Wrote: 1 hour ago (3:51 PM)
Nodeamass, before talking about the need for additional infrastructure you should understand our current capacity utilization. As for the Electric Grid, the Public Utilities own same and would make the investment.
Seriously, you are just guessing now, aren't you.
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nodeamass Wrote: 2 hours ago (3:36 PM)
Jim, did the CRS(Congressional Research Service) come to the wrong conclusions when they concluded that tax cuts did NOT spur GROWTH?http://www.businessinsider.com/study-tax-cuts-dont-lead-to-growth-2012-9
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Buck O Wrote: 1 hour ago (3:45 PM)
Yes.
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nodeamass Wrote: 1 hour ago (3:52 PM)
Of course, you have some reference for this??
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Smitty41inPB Wrote: 2 hours ago (3:36 PM)
Geithner want's to do away with the debt ceiling, Hostess should have timmy give them a loan and promise to pay it off when the US pays off it's debt, make sure to get the same rates as timmy pays hostess
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Smitty41inPB Wrote: 2 hours ago (3:04 PM)
hostess goes to mediation because unions realize slitting wrists is bad for workers even union workers LOLOLOLOLOLOL
buyers in the wings, we will not buy a company with union workers
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Quintus_T_Cicero Wrote: 2 hours ago (3:04 PM)
Just what planet are you from, nobrainmass, Mongo, Romulus, or Terra Obscura?
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Jim Weber Wrote: 2 hours ago (3:07 PM)
Nodeamass is getting beetch-slapped and doesn't even know it.
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spartacus3344 Wrote: 2 hours ago (3:14 PM)
That person is a fanatic, and if given the choice of defending a false belief system or accepting that what he believes is true just isn't, the fanatic will always defend their failed belief system.
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Smitty41inPB Wrote: 2 hours ago (3:02 PM)
obama takes questions (wiffle ball that the are) from the press and the markets tank, he goes overseas and Congress takes a holiday and it it has best day in months.....
sensing a pattern, less gov't is good for the markets
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Smitty41inPB Wrote: 2 hours ago (2:56 PM)
It's not just millionaires and billionaires who are fleeing the economic madness in California. Even cows are starting to depart for greener pastures. That's right, 400 bovine refugees shuffled off to Kansas just this month, with more expected to follow as over 100 dairy farms in California close their doors.
Why are cows voting with their hooves?
realclearmarkets.com
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Smitty41inPB Wrote: 2 hours ago (2:57 PM)
It's hard to find a government program as insane as the complex web of price supports, market orders, direct payments, diversion programs, herd reductions, import barriers, export subsidies, and stacked-to-the-rafters cheese warehouses that characterize Uncle Sam's efforts to "rationally manage" the dairy market. If you really want to understand how crony capitalism works to create market conditions only a Soviet commissar could love, take a look at what happens when byzantine federal regulations collide with state interventions.
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Jim Weber Wrote: 2 hours ago (2:54 PM)
Nodeamass, do retailers offer a Sale with the intention of losing money?
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nodeamass Wrote: 2 hours ago (2:57 PM)
No. What is your point?
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Jim Weber Wrote: 2 hours ago (3:01 PM)
You cannot make the connection without my help. More proof of your ignorance. Why are you even here? Are you a masochist, or what?
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TeamAmericaWorldPolice Wrote: 2 hours ago (2:45 PM)
When Cali goes bankrupt the US Feds (us) will bail them out. We've had to do it several times:
propublica.org
You'll notice that the bailouts occur in states that the Jacobins have controlled forever.
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Jim Weber Wrote: 2 hours ago (2:44 PM)
And the hits keep coming:
Nodeamass writes: "Jim, even a business guru like you knows you don't put all your eggs in one basket. California's economy is the least of one's worries. It will do just fine. It is one of the WORLD's TOP TEN economies, so if it slips a notch or two, nobody other than chicken little clownies will notice."
Node, if California were a separate Country it would have the 8th largest economy. Not for much longer though.
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nodeamass Wrote: 2 hours ago (2:47 PM)
Ok Jim, let's cut corporate taxes. Explain how the US compensates for this loss of revenue.
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Smitty41inPB Wrote: 2 hours ago (2:49 PM)
what lost revenue?
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Buck O Wrote: 3 hours ago (2:35 PM)
QTC asked an interesting question: " BTW, what will happen to CA when all the people making $250,000+ decide it's time to get the heck out the place?"
Here's an historical parallel:
online.wsj.com
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fenren Wrote: 3 hours ago (2:39 PM)
Did you know that Turbo Tax Timothy Geithner, tax cheat is the son of Peter Geithner, former Ford Foundation head of the Indonesian region’s microfinance program,
which formerly employed one S Ann Soetoro, Program Director, and Mother of the Obamination ?
web.archive.org/web/20100806011701/http://cinie.wordpress.com/2009/02/27/the-obama-geithner-connection
Tim Gethner's dad Peter, BH-Obama, His mom Ann-D-Obama-Soetoro, and the CIA
cannonfire.blogspot.ro/2008/11/spies-lies-barry-and-his-mom.html
After BHO-Sr left for Kenya, Frank-M-Davis a card carrying Commie had an affair with Ann Durham, FMD is BHO's father."
obamasrealfather.com/frank-marshall-davis /breaking_news001-7 /press
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Jim Weber Wrote: 3 hours ago (2:24 PM)
Nodeamass, you realize that when California goes bankrupt, you may end up without your retirement income.....just like so many people in the private sector.
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nodeamass Wrote: 3 hours ago (2:27 PM)
We just passes prop 30 so nobody is worried. We just need to gut prop 13, which has really destroyed California, once the greatest public education place.
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Quintus_T_Cicero Wrote: 3 hours ago (2:30 PM)
BTW, much of Prop 30s money ain't going to education. It's going to Wall Street. BTW, what will happen to CA when all the people making $250,000+ decide it's time to get the heck out the place?
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D G Wrote: 3 hours ago (2:19 PM)
Eaton Corporation is restructuring and is becoming an Irish Corporation. Ireland has 12% corporate tax rate and US has 35%. The company says it will save $160 million per year with the is change.
Bye, bye to US jobs and tax revenues to uncle Sam.
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nodeamass Wrote: 3 hours ago (2:29 PM)
Ireland is in dire straits. The race to the bottom will not end well. People will not tolerate subsidizing businesses.
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Jon Russo Wrote: 3 hours ago (2:31 PM)
They tolerated Solyndra and Abound Solar.
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Smitty41inPB Wrote: 3 hours ago (2:16 PM)
brainless if taxes have no bearing on corporations and their ability to stay in business, then just do away with the taxes, lets see what happens
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nodeamass Wrote: 3 hours ago (2:24 PM)
Hey clownies, let's do away with all govt costs which go toward protecting private property and we can lower our taxes. Let's just make the US a free for all nation. We also need to eliminate all border police and savve more money. This would provide freedom for all. Let's eliminate all govt and just have pure anarchy, just like the good ole days.
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Jon Russo Wrote: 3 hours ago (2:28 PM)
I'd settle for a govt with "limited and enumerated" powers. Anarchy is a temporary condition which never lasts long.
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Jim Weber Wrote: 3 hours ago (2:16 PM)
Nodeamass writes: " I don't know what cost of capital or ROI is, but I do know that if a business can make a profit, the tax rate is just one consideration of many."
Priceless.
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Buck O Wrote: 3 hours ago (2:13 PM)
Everyone please note that loadedass has hit for the "cycle" of dishonest debate tactics: Straw man arguments, non sequiturs, imputed motives, and now ad hominems. Congrats, NEA boy.
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nodeamass Wrote: 3 hours ago (2:16 PM)
Nonsense! All of us use ad hominems, read your previous posts and either admit this or just know how insane you are if you don't.
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Buck O Wrote: 3 hours ago (2:19 PM)
Ha! Ha! Ha! Pointing out your stupidity doesn't constitute an ad hominem, but what about the rest, fool?
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