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alstry (36.32)

Income Evaporating in America

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August 28, 2008 – Comments (4)

As I have been saying, income in America is evaporating.  Now the the banking system as a whole is losing money.  The outlook is for even more losses.  No income, no taxes being paid.  We are facing something we have never seen in many many decades.  Here is the proof:

``What you are seeing is more legitimate economic weakness in the income numbers,'' said James O'Sullivan, a senior economist at UBS Securities LLC in Stamford, Connecticut. ``The GDI numbers raise the potential that GDP is overstating growth.''

The 1.9 percentage-point difference between the GDI and GDP over the last 12 months is the biggest in the post World War II era.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aIWiIsk9fzl8&refer=home

4 Comments – Post Your Own

#1) On August 28, 2008 at 2:39 PM, alstry (36.32) wrote:

Pretty soon instead of using PE mulitples to value stocks.....we will use PL....Price to Losses.

Maybe a good company will be worth 10X its losses.

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#2) On August 28, 2008 at 3:12 PM, LordZ wrote:

LOL at the price loss ratios, and looking forward to stocks losing less money this quarter than originally expected and losing less than last quarter, all the while seeing the price of said stock jump 30% upon lower losses.

 

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#3) On August 28, 2008 at 4:01 PM, lquadland10 (< 20) wrote:

They are pulling out the chartolgist to say we will rally. Breaking news on MSNBC We have hit bottom. China now charging overseas companies 25% capitol gains tax. Cramer says housing will hit bottom a year from now. MSNBC saying the bottom is in? Where are the BIG Whales? NOT here  yet. The lairs and cheaters are out in full force.

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#4) On August 28, 2008 at 4:27 PM, alstry (36.32) wrote:

As companies stop earning money they stop spending and start laying off workers.....we are now in the millions. 

SAN FRANCISCO (Reuters) - Dell Inc reported a surprise 17 percent decline in quarterly profit on Thursday as the company suffered from tighter corporate spending in United States, sending its shares down 8 percent.

http://biz.yahoo.com/rb/080828/dell_results.html?.v=2

If you think this quarter was bad...........

 

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