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Dallas Fed Provides Latest Confirmation Of Corporate Margin Collapse, As Prices Paid-Received Difference Hits Fresh Record

Tyler Durden's picture




 

Everywhere one looks (assuming one is more than just a market momentum, block order frontrunning algorithm... or a Deutsche Bank "strategist" of course), one sees relentless evidence of collapsing margins. Most recently, this was the Philly Fed, whose Price Paid less Prices Received index spread came at the highest since 1979. Well, at least it wasn't a record the Koolaiders said. Alas, that rebuttal will not work for the Dallas Fed. The latest diffusion index, which came at 17.5, on expectations of 13.0, confirmed two very much expected things: i) economic "growth" continues to be predicated on inventory stockpiling, as has been the case for the past two years, which is nothing but a highly speculative bet that demand will eventually pick up (and we pray the Dallas Fed respondents use FIFO not LIFO accounting), and ii) margins are getting crushed. Recreating the Philly Fed Prices Paid less Prices Received index shows that the differential of 45.50 is now at all time wides. Notably, the last time the spread was at or above 45 was in early 2008 following which everything went to hell. Expect to see many more diffusion indices confirm the relentless erosion in corporate margins, which in turn will result in either accelerating end-user inflation (unlikely), or imminent margin and EPS downside guidance, which even a reluctant Wall Street will have no choice but to take into account over the next several weeks.

 

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Mon, 02/28/2011 - 11:57 | 1003851 gordengeko
gordengeko's picture

lotta snow this year already.

Mon, 02/28/2011 - 11:58 | 1003853 Bearster
Bearster's picture

Any business who wants to decrease sales revenues and unit volumes can try to raise prices in this environment.

Mon, 02/28/2011 - 12:40 | 1004040 NotApplicable
NotApplicable's picture

If only their balance sheets were robust enough that they could survive lowering prices until such a point that the market would clear (as Say would say), then the recovery could begin in earnest.

But alas, the only corps that will survive this Fedgov induced disaster will be the TBTFs that can roll paper out to Benron. All the rest will consume their capital until such a time as they cannot maintain the fiction any longer, and will be consumed by the bankster-banked paper sharks in order to get the remaining scraps of wealth.

Mon, 02/28/2011 - 12:01 | 1003863 ColonelCooper
ColonelCooper's picture

But the markets are up, so it must be good.

Mon, 02/28/2011 - 12:04 | 1003873 plocequ1
plocequ1's picture

Nothing the Taxpayer couldnt handle. $3.59 for a gallon of gas. Mere bag o' shells.

Mon, 02/28/2011 - 12:01 | 1003864 plocequ1
plocequ1's picture

I am John Q Taxpayer. May i help you?

Mon, 02/28/2011 - 12:02 | 1003867 Burgess Shale
Burgess Shale's picture

A unionized public employee, a member of the Tea Party, and a CEO are sitting at a table. In the middle of the table is a plate with a dozen cookies on it. The CEO reaches across and takes 11 cookies, looks at the tea partier and says, "Watch out for that union guy, he wants a piece of your cookie!"

Mon, 02/28/2011 - 12:04 | 1003879 Flakmeister
Flakmeister's picture

Oh so true....

Mon, 02/28/2011 - 12:43 | 1004049 NotApplicable
NotApplicable's picture

Really, then where are the banksters?

(this is just typical divide and conquer tactics to distract from the real criminals)

Mon, 02/28/2011 - 18:35 | 1005218 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

The leveraged themselves to the hilt to produce twelve cookies out of only enough dough for one cookie, and the CEO is their lap dog for life, because he loves cookies.

Mon, 02/28/2011 - 12:08 | 1003888 bingaling
bingaling's picture

+1000

Mon, 02/28/2011 - 12:08 | 1003889 LawsofPhysics
LawsofPhysics's picture

After a few seconds, the Tea party member and union guy, who are also starving because their salaries don't keep up with real inflation, strike a deal to eat the CEO and split his assets. ;-)

 

 

Mon, 02/28/2011 - 12:14 | 1003913 buzzsaw99
buzzsaw99's picture

i like it!

Mon, 02/28/2011 - 12:22 | 1003947 Henry Chinaski
Henry Chinaski's picture

fun game

Then a politician comes in and gives the CEO a subsidy to make organic crackers.  Cookies are outlawed as an unhealthy snack.  

lets play

Mon, 02/28/2011 - 12:33 | 1004007 flattrader
flattrader's picture

I want a piece.

Can we make the CEO a bankster?

Mon, 02/28/2011 - 12:42 | 1004048 topcallingtroll
topcallingtroll's picture

I sure wish stockholders would assert their ownership rights and keep management in line.

Mon, 02/28/2011 - 12:13 | 1003910 buzzsaw99
buzzsaw99's picture

best evah!

Mon, 02/28/2011 - 12:15 | 1003920 IrishSamurai
IrishSamurai's picture

This joke is making the rounds on all forums ...

It's as funny as cancer ...

And as truthful as Fraser Patrick McInnon ... 

Mon, 02/28/2011 - 12:22 | 1003954 Flakmeister
Flakmeister's picture

Oh... could you please elaborate? Now it is a bit of a parable, but you are going to have to work hard to refute it.

Mon, 02/28/2011 - 12:30 | 1003983 IrishSamurai
IrishSamurai's picture

Sure ... one question:  Who made the cookies?

Think carefully before answering.  You'll either show your partisan roots and lack of market economics ... or you'll get the answer right and this discussion will end quickly ...

The root flaw to the "parable" (which is a laughable statement, in and of itself) ... is unionized public employee.

Again, think carefully, young Jedi.

Mon, 02/28/2011 - 12:34 | 1004010 Flakmeister
Flakmeister's picture

  I can assure you that the CEO did not make the cookies and even read the recipe for that matter.

Mon, 02/28/2011 - 12:36 | 1004020 IrishSamurai
IrishSamurai's picture

Thanks for showing your partisan roots.  Discussion over.

 

Mon, 02/28/2011 - 12:39 | 1004038 topcallingtroll
topcallingtroll's picture

Uh....I think yours are showing too.

Mon, 02/28/2011 - 12:42 | 1004047 IrishSamurai
IrishSamurai's picture

Yeah.  I have none.  I hate both the greedy CEO and the greedy public sector union employee ... cause I'm libertarian and don't buy into the left/right false dilemma road to HELL.

But you keep playing that game and see who wins in the end ...

Mon, 02/28/2011 - 12:46 | 1004060 topcallingtroll
topcallingtroll's picture

I hate them both too. I guess I assumed by your tone that you favored one of the groups. My apologies!

Mon, 02/28/2011 - 13:05 | 1004124 Flakmeister
Flakmeister's picture

Agreed, greed is not good. And agreed, lets ditch the left right false dichotomy. In essence what you have told me, is that productivity gains in real production, not potemkin financialization, belong to the top, even though most of said productivity gains orginated from middle layers of the company? And that there is no fair means to distribute over the entire vertical structure of a company?

Mon, 02/28/2011 - 13:24 | 1004176 IrishSamurai
IrishSamurai's picture

In essence what you have told me, is that productivity gains in real production, not potemkin financialization, belong to the top, even though most of said productivity gains orginated from middle layers of the company?

No.  I haven't told you anything.  You've inferred my position from projection and false pretense ...

 

And that there is no fair means to distribute over the entire vertical structure of a company?

The joke ... or parable if you want to call it that (although this is a perversion of an actual parable) ... starts from a false premise.  Public sector union employees don't belong to a "company" ... they don't have a CEO.  

Also, I'm not into wealth distribution through "fair means" ... when you get everyone in the United States to agree on what "fair means" ... actually means ... well, maybe we can have that discussion.  But the problem is that "fair means" in our country has become equal to "self-preservation" first, my fellow man second ... the CEO, the public sector union employee, and the tea partier all share this common trait ...

... but the difference is that the tea partier, or as I read it, the taxpayer ... has no voice in "fair means" ... which is why this is the real story:

"A CEO, a public sector union thug, and a taxpayer sit down at a table of 12 cookies that were created by the CEO's company.  The CEO risked 3 cookies to create the 12 cookies, so he takes 6 cookies for his risk and investment ... the taxpayer who works for the company gets 2 cookies for helping make the 12 cookies, and the public sector leechfuck gets 4 cookies for doing absolutely nothing ... but then the government comes in and takes 1.5 of the taxpayers cookies because the union thug wants to be on 'fair means' with the CEO ... basically for existing, pushing paper, etc. (contributing zero to the productive capacity of society).  So the government, using physical extortion, taxes the other 1.5 cookies from the taxpayer to make the union thug closer to equal with the CEO ... and the CEO and the union thug continue to vote for politicians who exercise this discretion in cookie distribution while the taxpayer continues to get cornholed for basically trying to feed/raise his family and live off the table scraps left by the other two greedy fucking groups ... "

No, not funny ... but more based in reality.

 

Mon, 02/28/2011 - 13:37 | 1004208 Flakmeister
Flakmeister's picture

No.  I haven't told you anything.  You've inferred my position from projection and false pretense ...

 

Pot meet kettle... now moving along. 

You seem to have a lot of vitriol for public employees...Yeah, the is a limit to how far I will defend them and there has been a lot of abuse of the system. But you are simply apopletic. Not good, it can lead to cancer. I also suppose that you have only marginally benefited from any form of public services?

You state that the CEO put up 2 cookies.... I think it is pretty clear that the "CEO" in question is not a small business type, we are referring to the top 0.5 to 1% of the food chain, are we not? Well, you are completely naive if you think the CEO has any real skin in the game, he is only extracting what he can as fast as he can. 

Its pretty clear you are angry, and probably have a right to be. But the parable is all about who is really screwing the American people.

 

Mon, 02/28/2011 - 13:55 | 1004275 IrishSamurai
IrishSamurai's picture

But the parable is all about who is really screwing the American people.

Not angry.  Wise to the game so no reason to be angry.

I have no vitriol for public employees.  I have vitriol for public "me first" types which is what is on display in Wisconsin.  When the average public sector employee is making nearly 2x their private sector counterpart, you do the math and tell me how that works out when the private sector employee is funding the public sector employee. 

Not naive either.  If you really think that the Jamie Dimon or Lloyd Blankfein are the biggest problems we have in this country, you're not awake yet.  Here is the red pill.  See you on the other side.

 

Mon, 02/28/2011 - 14:17 | 1004343 Flakmeister
Flakmeister's picture

The essence of Libertarianism is "me first" but I digress....

If the median compensation in this country had kept pace with the economy since 1970 that it woud be ~$110,000 in todays dollars. We do agree on where the difference went, do we? The thing that you miss is that the public unions were able to roughly keep what they had from those days, the bulk of the private sector joes were hosed. It wasn't the public sector that hosed them either...

Now you appear to be a student of political philosophy and history. Could you tell when you think that America was at it's pinnacle (I deliberately leave it vague for your benefit) and could you describe how we could get back to that ideal.

 

Mon, 02/28/2011 - 14:30 | 1004382 IrishSamurai
IrishSamurai's picture

The essence of Libertarianism is "me first" but I digress....

You probably need a re-schooling in libertarianism, but I'm not here to give it.  There are plenty of links on the internet ...

http://lmgtfy.com/?q=libertarianism

 

Now you appear to be a student of political philosophy and history. Could you tell when you think that America was at it's pinnacle (I deliberately leave it vague for your benefit) and could you describe how we could get back to that ideal.

You and the other harvester should get together ... you'll have a great crop with all the strawmen you're building in trying to re-frame the argument.  Already seen this game played out ... let's revisit in case you missed it:

I say: 1776 ... You say: You support slavery!

I say: 1880 ... You say: You still support slavery and non-equal rights for all Americans (womens, blacks, the gheys, etc).

I say: 1940 or 1950 or 1960 ... You say: You support 90% tax confiscation to support our country ...

So here's what I really say:  I'm not going to try to knock down your strawman.  Good luck with the harvest.

Mon, 02/28/2011 - 17:06 | 1004414 Flakmeister
Flakmeister's picture

   No need to pick up your toys and leave in a huff....

The thing you libertarian types always miss, is how to deal with the 5% of society that are certified sociopaths. At the root of all political philosophy is addressing that question. And no one has come up with an answer to that with is consistent with their philosophy. And for the record, we do agree that it is the 5% that have fucked everyone over?

Mon, 02/28/2011 - 18:41 | 1005228 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

... cause I'm libertarian and don't buy into the left/right false dilemma road to HELL.

I lol'd.

He believes in abstractions even further removed from reality than the left/right paradigm.

 

 

Mon, 02/28/2011 - 19:09 | 1005295 Flakmeister
Flakmeister's picture

Me thinks he got pwned...

Mon, 02/28/2011 - 20:33 | 1005496 StychoKiller
StychoKiller's picture

This Reality that you're in favor of is full of Ignorati, get some education:

http://pixel420.com/pixel420/stateless/

 

Mon, 02/28/2011 - 21:45 | 1005657 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

I think you mean me. But I wasn't coming out "in favor" of any Reality, so I'm confused.

I've seen that site linked a couple times recently, but never looked past the link titles.

I looked into a few of them this time...

...found it to be a lot of intellectual boner fluffing...

...that "Argument from Morality" was painful to read, it was so bad.

...we got more important stuff to deal with in the reality we are stuck before we construct utopia...

..."anarchy" any time in the next decade is going to be civil war culminating in feudal rule...

...but maybe in the long run some anarchist utopia can come to be.

ttyl

edit: And maybe in the long run Peter Joseph's utopia can come to be... I got no particular preference as long as the world is "fair" in utopia in the long run... LOL

Mon, 02/28/2011 - 13:44 | 1004228 goodrich4bk
goodrich4bk's picture

To quote you, thanks for showing your partisan roots. Discussion over.

Now for those still interested in playing, please feel free to explain how an economy without teachers, firemen, police, courts, a military, etc. produces anything other than the most simple products, such as cookies. And then tell me how many cookies the CEO gets to eat in that kind of society.

Hard to determine? Just look at any country on the planet that does not educate its citizens, where there is no rule of law, where private property is a privilege granted by the sovereign and not a constitutional right. Libya, Egypt, Tunisia, North Korea -- the list is nasty, brutish and short.

Should we insist that all sectors, including public employees, sacrifice for the good of our children, who stand to inherit the mess we've made? Of course. But the notion that we can do without public employees, or that they are "thugs" for acting with the same self-interest that we claim is a virtue when exercised by a CEO, is laughable.

Mon, 02/28/2011 - 13:57 | 1004279 IrishSamurai
IrishSamurai's picture

Your corn harvest is safe this year, that's for sure ...

Mon, 02/28/2011 - 20:34 | 1005500 StychoKiller
StychoKiller's picture

...where private property is a privilege granted by the sovereign and not a constitutional right.

 

What makes you think we "need" any govt of any sort?

http://pixel420.com/pixel420/stateless/

 

 

Mon, 02/28/2011 - 20:41 | 1005513 Flakmeister
Flakmeister's picture

Hey, I hear Somalia is offering immigration visas for cheap. I hope you aren't too late to book your flight to the libertarian paradise....

Mon, 02/28/2011 - 12:37 | 1004019 topcallingtroll
topcallingtroll's picture

The CEO and management are only taking 5 cookies. The union guys where they exist are taking 6. There hasnt been any left for stockholders and tea partiers. Capital gains are merely phantom cookies. The dividends are the real cookies and they are a few crumbs at best.

Of course reality doesnt make a good joke in this case. The joke is on the investor.

Mon, 02/28/2011 - 12:40 | 1004034 IrishSamurai
IrishSamurai's picture

+googolplex

No the CEO didn't make the cookies.  Neither did the "public sector" union employee ...

 

Mon, 02/28/2011 - 13:35 | 1004207 sgorem
sgorem's picture

Made In China....................

Mon, 02/28/2011 - 14:09 | 1004318 IrishSamurai
IrishSamurai's picture

Explains the lead poisoning ... thanks for the laugh.

Mon, 02/28/2011 - 12:48 | 1004072 ssp2s
ssp2s's picture

How many cookies did the taxman take?  To whom did the taxman give the cookies?  Whatever your answers, I am entirely certain that the Union guy receives a lot more cookies than the teaparty guy.

And you can bet that the CEO doesn't take any cookies until sorting things out on the front end with the taxman and the bankster.

Your parable is a parabable.  FAIL

Mon, 02/28/2011 - 12:56 | 1004102 GoatETF
GoatETF's picture

...

Mon, 02/28/2011 - 22:10 | 1005704 mophead
mophead's picture

A unionized public employee, a member of the Tea Party, and a CEO are sitting at a table. In the middle of the table is a plate with a dozen cookies on it. The CEO reaches across and takes 11 cookies, looks at the tea partier and says, "Watch out for that union guy, he wants a piece of your cookie!"

 

I disagree, here's the real story:

A unionized public employee, a member of the Tea Party, and a CEO are sitting at a table. In the middle of the table is a plate with a dozen cookies on it. The CEO reaches across and takes 11 cookies. The union employee threatens to stop doing business with the CEO's corporation--that and/or get his buddies to unionize his company. The CEO says fine, then hands the unionized public employee 11 cookies, plus the last cookie that's on the plate, and the plate itself, then a) rips the shirt off the Tea Partier, b) takes his wallet out, c) empties the change out of his pockets, then hands everything to the unionized public employee.

Mon, 02/28/2011 - 12:04 | 1003877 Misean
Misean's picture

What do profits have to do with stock prices?

Mon, 02/28/2011 - 12:15 | 1003914 buzzsaw99
buzzsaw99's picture

word

Mon, 02/28/2011 - 12:30 | 1003990 topcallingtroll
topcallingtroll's picture

In the long run, everything.

Mon, 02/28/2011 - 12:34 | 1004006 NotApplicable
NotApplicable's picture

Yeah, but we're all dead then, so party on!

Mon, 02/28/2011 - 12:05 | 1003878 LawsofPhysics
LawsofPhysics's picture

Anyone who runs a successful business and has honest accounting could have told you this.  No more bailouts, no more lobbying, and the return of transparent books that are free of "mark to unicorn" accounting would go a long way towards fixing everything.  The sooner we get to true valuation, the better.  It is going to happen on way or another, how painful do we want this process to be?  Hedge accordingly. 

Mon, 02/28/2011 - 12:13 | 1003908 Milton Waddams
Milton Waddams's picture

Coming to a theater near you:

Cost-push ... dubious given the state of the avg consumer, see CMG latest conference call for confirmation (hint- they are waiting to see how others fair)

Earnings contraction

Mon, 02/28/2011 - 12:14 | 1003911 Caviar Emptor
Caviar Emptor's picture

I'm taking a modest victory lap: I first called attention to the Prices Paid/Received difference a year ago. The trend is intact. One thing about the Philly Fed: last report showed the first significant pick up in prices received (although way outdistanced by prices paid). This means that producers are trying to pass along costs for the very first time. We'll soon enough see the result of this little experiment. If demand levels or drops off that will confirm beyond any doubt that there's no flexibility passing costs on into a constrained economy (as I've predicted). And that means margins will simply deteriorate more as the business cycle progresses until an impasse is reached. It also threatens inventory bottlenecks that could also prematurely abort the cycle.

Mon, 02/28/2011 - 12:25 | 1003962 topcallingtroll
topcallingtroll's picture

If we have huge productivity gains we can avoid the dire scenario. The usa is in a good position to pull off some good efficiency gains with a little continued creative destruction and creative " creation "

All of you unemployed people capitulating and taking the shitty downscale job will also help! They have driven out a lot of illegal immigrants so we need farmhands and.chicken processers in Arkansas and all through the agriculture belt. It is.a perfect job for those who got a worthless Bachelor of the Arts Degree.

Go back to work, serfs. Welcome to your new normal.

Mon, 02/28/2011 - 12:18 | 1003932 topcallingtroll
topcallingtroll's picture

Hmm...TD has always been in the hyperinflationary camp with his relentless warnings about QE.

Now he says end user inflation is unlikely?

Mon, 02/28/2011 - 12:27 | 1003976 Johnny Lawrence
Johnny Lawrence's picture

I've never been in the hyperinflationary camp, mainly because everyone and their mother is calling for inflation.  Not that we won't see bouts of inflation, but I still believe the long-term trend will be deflationary (see Japan).

Throw all of that out of the window though...I have clients who sell a variety of products to the "end-user" consumer.  These include milk, footwear, and clothing.  In my recent conversations, they have all indicated that they are unwilling to raise prices on the consumer, and as a result, their margins are getting hurt.  But, it's what they have to do since the demand on the other side is so weak.

 

Mon, 02/28/2011 - 13:06 | 1004129 Chicago bear
Chicago bear's picture

A restaurant owner heard me discuss this problem and he refuses to raise menu prices on this customer, saying they will all go down the street. I said, "Then invest some cash assets in bullion metals as a hedge, or invest in a food ETF. That way you will recoup the losses in margin by way of the increase in ETF value as food costs increase." "You want me to tell my Dad that I am trading futures while he is selling gyros? Are you crazy?" he said. I replied, "Then get ready to slowly lose cash till you go out of business." 

Mon, 02/28/2011 - 12:21 | 1003944 falak pema
falak pema's picture

I could never believe in that MVA, EVA crap. I jumped out of that game a long time ago. Is it dead or do they still tout its merits in great corporate land?

Mon, 02/28/2011 - 12:29 | 1003985 I Am The Unknow...
I Am The Unknown Comic's picture

It should be no suprise that expectations will be revised downward, which will be pitched as "all good for stocks," and then next earnings round will "beat expectations" which will again be "all good for stocks."  As long as all input costs are rising across multiple industries, then one sector won't be singled out and become noticeable.  No need to raise prices when you can diminish the quantity and/or quality of your product and sell it for the same price.  Furthermore, wages will remain stagnant, which...you guessed it...will be "all good for stocks."  I see these data simply as proof The Bernank's strategy is working just like he wants it, that fucking asshole.  Companies will do just fine.  The citizenry is fucked.   Expect another round of "beats expectations" earnings reports, and continued elevated stock prices due to POMO.  Fundamentals no longer matter....period. 

Mon, 02/28/2011 - 19:19 | 1005327 Clockwork Orange
Clockwork Orange's picture

G20 Recap.

The Bernank:  the financial crisis  is Asia's fault - they had savings available for our Zirp-loving citizenry to acquire in their pursuit of plasma screen TVs and sub-prime-fraud fueled houses.

Trichet:  we cannot do anything about commodity prices (pay no attention to the fact we absolutely caused it).  The worst thing that could happen is if the serfs get wage increases, or some other insane event that helps them deal with the firestorm we have created.

Jamie Dimon:  I love my $22m stock bonus.  And, I did need that $73m for my top 15 execs, after all they are smarter than other humans.

...  please, somebody, take all these guys out behind the dumpster.

surreal isn't even the word.

 

Mon, 02/28/2011 - 12:31 | 1003992 Quaderratic Probing
Quaderratic Probing's picture

Mr B has always said he fears deflation not inflation, he must see food and energy as a temporary problem soon to be lowered by the Great Flush...

Mon, 02/28/2011 - 12:32 | 1003996 lbrecken
lbrecken's picture

more outright fraud......

Mon, 02/28/2011 - 12:31 | 1004000 Jerry Maguire
Jerry Maguire's picture

The money all flows to the banksters, not to anyone who actually produces some useful thing for the economy.  We have a faux economy.

See this post plus comments:

http://strikelawyer.wordpress.com/2011/02/24/bankster-jubilee-v-popular-...

 

Mon, 02/28/2011 - 13:11 | 1004136 Miles Kendig
Mon, 02/28/2011 - 13:24 | 1004174 fearsomepirate
fearsomepirate's picture

Mises wrote around a century ago that inflation disguises losses as profits.  Looks like he was right, not that anyone at the Fed will acknowledge that.  Heck, they still won't acknowledge that they create bubbles.

Mon, 02/28/2011 - 13:33 | 1004198 rlouis
rlouis's picture

Useful inventory may clear from shelves as prices begin to reflect monetary growth - rebuilding after that likely to be a few years off due to the irrational economics of not being able to make a profit.  Gotta wonder how Ben Bernbanks will explain that.   

Mon, 02/28/2011 - 14:00 | 1004286 falak pema
falak pema's picture

If there is real deflation WS is kaput. If there is real prolonged inflation, the american people are kaput. If there is WW3 the world is kaput. If there is Chinese takeover of NWO then we all learn to eat with chop sticks, wear pigtails, have one kid per family and earn 100000 Yuan/year. Large number, low impact. Must be a fifth protocol in there....

Mon, 02/28/2011 - 14:23 | 1004362 Common_Cents22
Common_Cents22's picture

Businesses cut back capital spending, cut expenses, cut employees to preserve margin.    We are getting to the point where there is nothing else to cut cept margin.    Unless you are getting millions/billions from the govt of course.

Mon, 02/28/2011 - 14:58 | 1004459 Don Birnam
Don Birnam's picture

<< Well, at least it wasn't a record the Koolaiders said. >>

Tyler, a distinction must be introduced, between Koolaid Brewers ( as referenced in this sentence ), and Koolaid Drinkers -- which is composed of ( or so the Brewers hope ) all the non-academic, non-FRB, non-Goldman Partner, gasoline-up-twenty-cents-over-the-weekend-paying noncognoscenti. Essentially, the unwashed, retail public.

Do NOT follow this link or you will be banned from the site!