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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?


To: Cogito who wrote (105014)2/26/2009 12:57:58 PM
From: TimF  Respond to of 542907
 
First of all "a lot of companies" isn't "all companies". Also many of the companies that are laying people off are still investing. In many cases periodic or even continual investment is needed just to keep the company a going concern. They wouldn't be net investors, their capital stock is likely increasing along with their employment levels as they invest less then it depreciates, and some of them literally might not be investing at all for now, but many companies, even many companies that are laying people off, are still making investments, and then a few, those at the margin, may make the investments with the credits and then no without.

A credit (or rate cut) is no panacea, but nothing the government can do is for this type of situation.



To: Cogito who wrote (105014)2/26/2009 1:23:30 PM
From: Steve Lokness  Read Replies (3) | Respond to of 542907
 
Allen;

As I'm sure you're aware, a lot of companies have been laying off workers because they are either making lower profits or actually losing money.

I think this is wrong. I think companies are laying off workers, because sales are down. If you are selling less widgits, you need fewer people to build widgits. Many companies are sitting on mountains of cash......

steve