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Gayle in MD
10-04-2010, 12:35 PM
http://www.huffingtonpost.com/2010/10/04/corporate-profits_n_748889.html




Corporate Profits 'Near-Historic' In Second Quarter, Thanks To Cost-Cutting
Corporate America finished the second quarter with "near-historic" profits, largely by cutting costs, laying off employees and streamlining operations, the Wall Street Journal reports.

Profits for companies in the S&P 500 soared 38 percent from the same period last year, hitting $189 billion, the WSJ says, the sixth-highest quarterly total ever. S&P analysts expect the trend to have continued in the third quarter.

Since 2008, corporate profits increased 10 percent -- but revenue was down 6 percent, the WSJ says. To achieve the impressive quarterly results, companies have had, as the WSJ puts it, to "streamline" their operations. This means firing workers, outsourcing labor and shuttering unprofitable (or less profitable) divisions.

The robust state of corporate profits presents a paradox: companies won't spend their money until the economy improves, but the economy won't improve until they spend their money. An increase in hiring, for example, would help drive a recovery. The New York Times reports this "chicken-and-egg" phenomenon, noting that near-zero interest rates have encouraged companies to borrow money and simply hoard it because, as the NYT puts it, "they can." Combined, companies have $1.6 trillion in cash, the paper notes. In the first quarter of this year, their cash reserves represented the highest percentage of assets since 1964.

"They are still holding on to more cash in the same way that Noah built the ark," Gluskin Sheff chief economist David Rosenberg told the NYT.

As HuffPost's Shahien Nasiripour reported in August, bank profits during the second quarter rose 21 percent to almost $22 billion, the highest level in three years.

<span style='font-size: 14pt'>All these corporate profits came as the country as a whole got poorer. The net worth of households and non-profits dropped 2.8 percent during the second quarter to $53.5 trillion, erasing two quarters of gains. The figure hadn't been that low since the third quarter of 2009.</span>
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">After two straight years of declines, the number of millionaires in the U.S. grew by eight percent in 2010, totaling some 5.6 million households, according to Phoenix Marketing International. </div></div>.

eg8r
10-04-2010, 02:08 PM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Corporate America finished the second quarter with "near-historic" profits, largely by cutting costs, laying off employees and streamlining operations, the Wall Street Journal reports.
</div></div>This is exactly why Congress should be paying attention to how to run a business. Start shedding the federal budget and quit hiring more people and maybe things will turn around.

eg8r

pooltchr
10-04-2010, 02:48 PM
Our government has plenty of good models to look at.
Imagine, increasing profits by reducing costs! What a radical idea.
Imagine, even with revenues down, they have become more profitable...translate that to government, and you don't need to increase taxes to cut debt....you can get along with less, if you spend less.
Smaller, more efficient government is possible...and may be our only hope to get out of the mess we are in.
Steve

LWW
10-04-2010, 04:20 PM
In your own words, tell us whether this is good or bad and why?

LWW

jimmyg
10-04-2010, 07:54 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: LWW</div><div class="ubbcode-body">In your own words, tell us whether this is good or bad and why? LWW </div></div>

Chirp! Chirp!

http://www.youtube.com/watch?v=9hUy9ePyo6Q

J

Sev
10-04-2010, 08:19 PM
The government is going to be downsized in the near future. Election or no election.

LWW
10-05-2010, 02:17 AM
Yes ... I also set the bar far too high.

LWW

Qtec
10-05-2010, 03:28 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">This is exactly why Congress should be paying attention to how to run a business. </div></div>

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">largely by cutting costs, laying off employees and streamlining operations, </div></div>

What they have done is to make their workers pay for their own faults.

Sounds great for Americans, doesn't it. Those that still have a job are having to work for China wages and conditions. ie low wages, no benefits, no paid holiday, no HC cover, etc etc etc ......no worker rights basically.

God bless unregulated Capitalism.


Q...............wake up folks, thsi is the new Republican American dream.

LWW
10-05-2010, 04:06 AM
So the evil corporations have become even more evil under the democrook regime ... and you blame the republicans?

How unsurprising is that?

LWW

Sev
10-05-2010, 06:18 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"> <div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">This is exactly why Congress should be paying attention to how to run a business. </div></div>

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">largely by cutting costs, laying off employees and streamlining operations, </div></div>

What they have done is to make their workers pay for their own faults.

Sounds great for Americans, doesn't it. Those that still have a job are having to work for China wages and conditions. ie low wages, no benefits, no paid holiday, no HC cover, etc etc etc ......no worker rights basically.

God bless unregulated Capitalism.


Q...............wake up folks, thsi is the new Republican American dream.

</div></div>

Please explain why we need approx 2,000,000 civilian employee's in our government??

Civilian employees should be limited to 500,000 individuals who's salaries and benefits should not exceed the US median of a single male. Elected officials should be required to donate their time and benefits packages should be determined by performance which would be voted on by referendum by the people when they leave office.

Doing this would save the country multiple trillions a year.

eg8r
10-05-2010, 07:14 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">What they have done is to make their workers pay for their own faults.
</div></div>Well if you are correct then once everything is running back up to speed the corporations will need to rehire those workers. You don't seem to understand the obligations of a Corporation but that is to be expected considering you thought it was perfectly ok to work in an illegal casino.

eg8r

LWW
10-07-2010, 07:04 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: LWW</div><div class="ubbcode-body">In your own words, tell us whether this is good or bad and why?

LWW </div></div>

Obviously G has no idea whether it's good or bad.

LWW

Gayle in MD
10-07-2010, 07:37 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"> <div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">This is exactly why Congress should be paying attention to how to run a business. </div></div>

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">largely by cutting costs, laying off employees and streamlining operations, </div></div>

What they have done is to make their workers pay for their own faults.

Sounds great for Americans, doesn't it. Those that still have a job are having to work for China wages and conditions. ie low wages, no benefits, no paid holiday, no HC cover, etc etc etc ......no worker rights basically.

God bless unregulated Capitalism.


Q...............wake up folks, this is the new Republican American dream.

</div></div>



<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> <span style='font-size: 20pt'> wake up folks, this is the new Republican American dream.

</span> </div></div>

If only they had enough sense to realize that. /forums/images/%%GRAEMLIN_URL%%/crazy.gif

LWW
10-07-2010, 09:46 AM
Only a group of doublethinkers would believe that the most regulated economy on Earth amounted to unregulated capitalism.

LWW