Oh shit, theres going to be a run on the supermarkets. This is going to get weird.
I might as well invest in food if it is going up. My 401k is taking it in the shorts.
OlderAndWiser
· 1 year ago
Why the US stock market keeps going up eluded me until I thought about it. With massive layoffs, cutting expenses like not ordering toilet paper or soap for the restrooms, etc., many companies are saving tons of money, so profits don't take it in the ass. So...companies can retain profitability, even when management makes massive mistakes, can pay their execs top salaries and bonuses, and stiff the rest of us. Well, if I tighten up my own budget, buy less food, gas, etc., maybe I can squeeze in a few clothes or items for the house. Now, clothes and household items take the hit and are last in the budget.
Another factor is that many American companies sell the majority of their products overseas, like 3M, which sells 75% of its to foreign markets. And they're getting paid back in Euros, yen, etc., not crappy dollars. Boeing and other defense companies also have foreign profitability. Companies which make only products for domestic use (and there aren't many left) are the ones which are getting hit the hardest. Even McDonald's which expands its overseas presence on a daily basis is raking the dough in.
Companies can only cut back so far and keep operating. Sure, the balance sheets might look good on paper, even pay out a few dividends to stockholders, but who is going to buy your products in the end? After all, the average family income in the US is still around $46K, and inflation is killing us who have some income left.
I expect the real problem with the Chinese is that consumption of products made in that country is falling, esp. in the US. The rash of bad publicity over tainted products didn't help it, either.
P. S. New housing sales dropped 8-1/2% in Mar...the lowest in 16-1/2 years.
jr
· 1 year ago
"you're our bff. We'll help you out of this jam"-Wal Mart to China
Delronda
· 1 year ago
I wonder how many Chinese citizens are actually investors in the stock market? If they're anything like us in the USA, it's probably a very small number overall.
All Comments
Administration renews claims of Syrian nuclear weapons program
http://rawstory.com/news/2008/Administration_re...
This should scare the crap out of anybody who reads it.
"Aravosis: Hillary's 'gay' problem."
Her problem is she's still in the closet.
Load Up the Pantry
http://online.wsj.com/article/SB120881517227532...
I might as well invest in food if it is going up. My 401k is taking it in the shorts.
Another factor is that many American companies sell the majority of their products overseas, like 3M, which sells 75% of its to foreign markets. And they're getting paid back in Euros, yen, etc., not crappy dollars. Boeing and other defense companies also have foreign profitability. Companies which make only products for domestic use (and there aren't many left) are the ones which are getting hit the hardest. Even McDonald's which expands its overseas presence on a daily basis is raking the dough in.
Companies can only cut back so far and keep operating. Sure, the balance sheets might look good on paper, even pay out a few dividends to stockholders, but who is going to buy your products in the end? After all, the average family income in the US is still around $46K, and inflation is killing us who have some income left.
I expect the real problem with the Chinese is that consumption of products made in that country is falling, esp. in the US. The rash of bad publicity over tainted products didn't help it, either.
P. S. New housing sales dropped 8-1/2% in Mar...the lowest in 16-1/2 years.