At the risk of looking like the last
person on the face of the earth to figure this thing out, enough quarterly
results have come in now to get MacDougal realizing that 1) today’s CEO’s use
layoffs to increase earnings per share when revenues decline, and 2)
they’re so good at it that we’ve reached the point where downsizing has become some
new kind of accounting art form. Well, art
form to a retired CPA anyway.
Subscribers, this economy is stuck in a
downward employment spiral, a particularly ugly one too, one where good jobs keep getting replaced by garbage jobs in misleading Government statistics, and the leviathans of commerce, in which we hope
you’re all fully invested, have been growing the intrinsic value of your asset
management accounts at single digit annual rates with or without Alpha (sales
growth) while the rest of the country tumbles down the Obamarama crapper. Steadily, year after year, without fail, someplace,
somewhere, some of these guys have been dumping workforce and coming through on
shareholder-friendly numbers every which way but loose. Enough of these guys to finger them as part
of the problem.
Obviously, this does not portend well
for the country. There’s a theory going
around that our Bozo in the White House ascribes to what we’ll call,
destructionism, a devious ploy tearing America down to create this window for
the Commie takeover he and his ilk have been mapping out for decades. Promising jobs but delivering more and more unemployment is part and parcel of the destructionist agenda. If CEO’s continue along their downsizing
path, they’ll be playing into this Commie gambit, and at some point the whole
house of cards is going to fall down. In
it’s entirety, which includes your asset management account and ours.
Next step here may well be layoffs in the small business arena over the profit-crushing cost of Obamacare.
Next step here may well be layoffs in the small business arena over the profit-crushing cost of Obamacare.
Do not feel good about this feel-good
market. And pray. Pray for jobs, we suppose. Or someone who’ll come in and create them.
