Guest Post: Change In Corporate Profits Leads To Market Movements

Tyler Durden's picture

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EnglishMajor's picture

So what do the earnings reports look like when we throw Japan and the ongoing disruptions to supply chains and manufacturing into the mix?

topcallingtroll's picture

Profit margins are now dependent on worldwide growth.  We need big growth numbers out of the world ex japan ex europe to maintain them.

downwiththebanks's picture

Bullshit:  profit numbers depend on a combination of two things.  

1.  How much surplus value you can squeeze out of the slaves.  

2.  How much you can 'win' at the casino.

Growth has little to do with it at this point since 'profits' aren't based upon material investment or real production.  Rather, they come from leveraged, parasitical speculation in the world's gambling dens.

IdioTsincracY's picture


Labor costs going up in China ..... get Vietnam ready .... after that, Congo here we come .....

And keep the casino going ....don't touch those rates .....

keep that greenspan 2001 policy going .... look at all the good it has done!

Manthong's picture

Stop distracting everyone from important stuff like DSK, killing Bin Laden, Netflix and Lady GaGa.

janchup's picture

>we will either see close to zero economic growth by the end of the summer or QE 3.

Or QE3 with close to zero economic growth.

Maybe growth is passe these days anyway; Mother Earth cant handle it.

disabledvet's picture

would you agree this is true globally as well?  "Sony reports"  how massive a loss?  5 billion?  "Advantage those with...

Of course there have been rumors that corporate board meetings have now devolved into deep philosophical discourses of "the Arab Spring" and "the velvetty smoothness of the tulip petal."

Smiddywesson's picture

Perpetual growth was an illusion created by economist whores who prostituted their minds for professorships and grants.  The same goes for government and business leaders.  They bought into the lie that growth can be perpetual because it was good for them.  The big contraction has already begun.  We get our growth after the crunch, not before.

downwiththebanks's picture

Yep:  it's the con of Propaganda factories also known as Business Schools.

The myth that a finite world can produce infinite growth is the grand lie of Capitalism.

IdioTsincracY's picture

Wrong ... it's not a matter of finite vs. infinite ...

It's all about pushing everybody into debt ....

"I believe that banking institutions are more dangerous to our liberties
than standing armies"

Thomas Jefferson

EnglishMajor's picture

It will all be over soon.

XRAYD's picture



Corprate profits can't keep breaking records for ever, even with accounting gimmicks?


I'm shocked, shocked!


XRAYD's picture

Growth, like a drug for an addict, is peddled to the masses as "jobs" - even if the job is going to create a health hazard or might kill. 


What Joe six pack wants is, two things ...


1) His Six pack and 2) his "free" time occupation - TV/NFL/NASCAR/etc.


He can't get either without a job.


And without Joe's cheap labor and purchasing, there can be NO endless profits. Growth is growing pay check which is absorbed by rising beer prices and cable rates or ticket prices.


After a few beers and TeeVee, Joe makes more Little Joes. That is the formula for growth.


Joe thinks he can't make little Joes because beer and Teevee (and gas for his car/truck) costs too much. So to get Joe to vote for economic growth, Washington promises him either a tax cut, or free beer! And bitches about high gas prices.


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