Saturday, October 17, 2009

Dow 10,000 isn't a green light for economy

Dow 10,000 isn't a green light for economy
"Several experts point out than many of the relatively strong earnings reports helping to lift the markets in recent days are being driven by cost cuts, rather than strong revenue growth that would be a better indicator of consumers and businesses being willing to spend again.
If businesses keep cutting costs to make the numbers that Wall Street wants to see, that can only put more downward pressure on jobs and wages, and result in weaker economic growth or another downturn.
'The companies are cutting fat, and in many cases cutting bone and muscle.
There's no organic economic growth there,' said Yamarone."

No comments: