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| User Info | Productivity And Costs: More Caution in forum [Ticker] | |||
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Genesis Posts: 71346 Incept: 2007-06-26 
KD^2 
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http://market-ticker.org/archives/1581-P....
---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-11-05 08:47:19
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Beardown Posts: 35 Incept: 2009-08-07 Chicago
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Liesman was proclaiming the arrival of the recovery with the Q3 GDP print, then turns around and says these numbers are good because "this is what companies are supposed to do in a recession!" So which is it: are we done with the 'recession,' according to economists, or are we not done? No wonder these companies are blowing away earnings projections. Also, labor costs are declining while food and energy costs are going up. How does this benefit the average person?
2009-11-05 08:53:25
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Thecynical Posts: 22 Incept: 2009-08-16
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Q: Exactly who is it that buys the output of those firms, and with what do they purchase it? A: a)Government b)With borrowed money.
2009-11-05 08:56:27
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Digalert Posts: 60 Incept: 2009-09-19
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Strange phenomena, those remaining employed seem to be busting ass.
2009-11-05 08:56:45
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Genesis Posts: 71346 Incept: 2007-06-26
KD^2
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A gun in your face will have that effect. For a while. ---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-11-05 09:00:43
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Hp12c Posts: 29 Incept: 2009-06-03
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This equals better EPS numbers amid declining revenues...a formula that can work for only a few quarters until it blows up....
2009-11-05 09:01:42
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Genesis Posts: 71346 Incept: 2007-06-26
KD^2
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Yep. This is what I have been saying for a while, given the earnings reports. No surprise, other than the magnitude. That shocked me - a 10% annualized rate of change? That's not sustainable, but it will produce a nice quarter or two move in EPS - and for those who don't bother thinking about it, looks like a good reason to buy stocks. ---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-11-05 09:03:09
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Markytom Posts: 217 Incept: 2009-02-19 
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Also, companies are cutting back in areas like R&D, marketing, CapEx, improvement projects, etc. which bump short-term profits and what looks like productivity but long term it will cause more problems. There is a gap between cause and effect - these cuts now may not show up for a year or two, but they will have negative effects down the road.
2009-11-05 09:05:14
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Zeddicus Posts: 33 Incept: 2009-07-06 Galt's Gulch
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I can attest to this first-hand. I was recently laid-off from a huge high-tech multinational company as a result of this insane productivity driven, we-own-your-ass corporate behavior. It's the worst work climate I've ever seen in my 20-something year career. And what's worse is, I don't even care anymore. The "stuff" isn't worth the slavery. This J6P consumer is forever changed. We sold the big house, rented an apartment, and have eliminated all debt. After we close on the house, I will officially owe nothing to anybody, and I'll be perfectly content to live a simpler life, way off at the edge of the tax radar.
2009-11-05 09:17:00
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Burtoby Posts: 520 Incept: 2007-10-28
Arlington,Tx
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So CNBS tries to pass it off as Expansion Mode when it's really Survival Mode.
---------- Tryin' to turn 6 figures into 7.
2009-11-05 09:25:05
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Slyace Posts: 1061 Incept: 2007-10-02
Dallas
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Charles Hugh Smith wrote something a while back in which he argued that huge parts of the workforce could be eliminated and nobody would notice. Kind of like if Dunder Mifflin Scranton fired a third of the staff -- would productivity really go down? Today's number reminds me of that. I know in my industry (law), a huge percentage of what is done by lawyers does not really need to be done in the first place.
2009-11-05 09:30:02
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Trades50 Posts: 1137 Incept: 2007-10-30
IL
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The game plan by the gov and Wall street is a repeat of 2001 to 2003. I remember it well. Lie and keep on lying and making numbers up until everything comes back. Get Mr small business man to drop some big cash to attract the perceived recovery. know businesses are keeping their PC more than the 2-3 years now. Instead of the average person blowing it's the government this time. Add in the retiring baby boomers putting even more pressure on budgets with payouts and decreased collection of tax receipts. ---------- Labor for the Globalist: World Class means Third World Class.
2009-11-05 09:36:57
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Pauperbear Posts: 1406 Incept: 2008-01-22
norwalk, ct
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Cisco had sick margins as usual but actually guided up for revenue, who buys in this environment? .govs? took me by surprise as chambers doesn't pump
---------- The truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is. Winston Churchill
2009-11-05 09:59:08
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Cheese Posts: 45 Incept: 2008-07-09
wis
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with the average work week around 33 hours you crank up productivity a little bit .its a long time before you hire another pain in the ass employee
2009-11-05 10:10:04
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Throxxofvron Posts: 2672 Incept: 2009-02-17
The Land of Bilk & Money
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Sooner or later J6P is gonna take His nose off the Grind Stone and Put His Boss's Head Into the Flywheel if this continues.
---------- DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides “During times of universal deceit, telling the truth becomes a revolutionary act.” -George Orwell
2009-11-05 11:05:39
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Phirang Posts: 8812 Incept: 2008-10-25
bar khoba's revenge
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Everyone is getting flogged hard at work. The situation now is pathetic.
---------- The Treasury can issue debt on your behalf because the State can and will stomp the wealth out of you and your family.
2009-11-05 11:17:43
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Realist Posts: 95 Incept: 2009-07-14 Pennsylvania
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Quote: "Exactly who is it that buys the output of those firms, and with what do they purchase it? On a forward basis what will this mean for consumption - and eventually, both production and sales?" These are my thoughts, too. When there aren't enough people with good paying jobs, who is going to buy this stuff and who will pay the taxes to run the government and pay for Social Security and Medicare? ------------------------------------------------- A trillion here, a trillion there and pretty soon you're talking about real money ************************************* Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist. - Kenneth Boulding, economist
2009-11-05 11:37:58
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Curbyourrisk Posts: 1886 Incept: 2008-08-19 Long Island, New York
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This reaks of continued deflation!
---------- Hopium: hope filled delirium preached by the White House and Swallowed whole by the American Sheeple. Why is Franklin Raines a free man? "We saved the world from disaster" - Ben Bernanke - Jackson Hole 08/21/2009 
2009-11-05 11:39:48
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Britishsteel Posts: 726 Incept: 2007-12-07
New york Online
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http://4.bp.blogspot.com/_pCDyiFUv9XU/Sv....
2009-11-05 11:43:09
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Genesis Posts: 71346 Incept: 2007-06-26
KD^2
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What it reeks of is a massive squeeze upon the incomes of real people. Look at the implied deflator  on top of this.
---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-11-05 11:45:57
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Tesla Posts: 8172 Incept: 2008-04-03 
Delaware
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Where do you find the implied deflator ?
---------- "Neither the wisest Constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt." Samuel Adams I'd rather die on my feet than live on my knees. - Emiliano Zapata
2009-11-05 12:00:46
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Snowman Posts: 1039 Incept: 2009-03-09
avoiding yellow snow
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welcome to an unemployed "recovery". Economic gain with human pain. Quite disheartening.
2009-11-05 12:07:08
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Canuckshredder Posts: 73 Incept: 2007-12-07
Whistler, BC
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For a second there I read the last line as this: "Exactly who is it that buys the output of those firms, and with what do they purchase it? On a forward basis what will this mean for consumption - and eventually, both production and slaves?" The G****s of Wrath comes to mind... ---------- "the future's uncertain and the end is always near"
2009-11-05 12:18:38
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Future_shock Posts: 1140 Incept: 2007-10-16
Texas
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I guess the implied deflator for nonfinacials tells us labor costs are falling faster than raw materials prices are rising.
2009-11-05 12:26:21
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Genesis Posts: 71346 Incept: 2007-06-26
KD^2
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Ding ding ding ding ding.
---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-11-05 12:26:45
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