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Worst decline in earnings in 140 years.

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October 01, 2009 – Comments (7)

Earnings are leveraged up during growth phases, for example, a 5% increase in sale may result in 10, 20 or even 30% higher profilts, depending on the company.  Earning decline far more then what sales decline in a down market.

It has seemed to me for some time, I guess getting into 2 years now, that earning would tank big time.  Well, Barry has a link that reports that the decline is worse then anything in the past 140 years.  Seems to me that the depression was in the last 140 years...

7 Comments – Post Your Own

#1) On October 01, 2009 at 7:52 PM, Varchild2008 (85.21) wrote:

DWOT...  I am curious if there is a chart regarding EARNINGS falling off a cliff against CRIME RATE spiraling upward out of control.

We have many states that have slashed state troopers (Michigan) <---.  We have a city recently reported in Texas that totally dumped their Police Department altogether.

No COPS?   Due to Earnings Plunge?  I can't even imagine what such a chart comparison would reveal if it was State by State.

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#2) On October 02, 2009 at 12:19 AM, dwot (42.57) wrote:

That would be an interesting chart.  I am sure it is a given, crime going up with the economy going down.

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#3) On October 02, 2009 at 11:28 AM, AdirondackFund (< 20) wrote:

The earnings decline is about to get even worse.  With Bank's and Merchant's placing 'holds' on Debit Card and Credit Card Transactions for 2 X the amount of the bill, you can automatically reduce your Retail Sales estimates even further.

For every $200 item that is purchased on a Credit or Debit Card, $400 will be withdrawn from your Banking Account for a period of 3-5 days.  You are now lending your money to Merchants, who obtain a Visa Credit for the time period of the hold.

And you thought it was a bad idea to loan free money to Banks under our 'stimulus package'?  Now....it will become even harder to spend as customers are forced to loan money free of charge to merchants on EVERY transaction that is processed.

How can this Banking 'policy' allow an economy to recover?  It can't. 

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#4) On October 02, 2009 at 2:25 PM, miteycasey (30.31) wrote:

YOU NEED TO REREAD THE ARTICLE!!!

Earning forcasts are the worst in 140 years.It's just the error rate of forcasters. It doesn't matter if they miss it high or low it counts the same.

It doesn't state that earnings are the worst in 140 years.

HUGE DIFFERENCE!!!

Just shows  the crystal ball is just much more foggie than the past.

You should watch the movie the movie "Two for the Money" as to what prognosticators  turn to when they lose their mojo.

 

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#5) On October 02, 2009 at 2:50 PM, davejh23 (< 20) wrote:

"Earning forcasts are the worst in 140 years.It's just the error rate of forcasters. It doesn't matter if they miss it high or low it counts the same.

It doesn't state that earnings are the worst in 140 years.

HUGE DIFFERENCE!!!"

So, if earnings start coming in below revised forecasts, then this is even worse than the article is implying?  Only ridiculously low forecasts have been beat recently...many forecasts have been revised up recently, so we'll see what this looks like going forward.

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#6) On October 02, 2009 at 3:13 PM, miteycasey (30.31) wrote:

That's part of my point. The staticsics are not proken out if they missed the forcasts on the high side or low side. They are all lumped in together.

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#7) On October 06, 2009 at 10:47 PM, neapolitan (< 20) wrote:

More companies are getting increased earnings forecasts than decreased earnings forecasts.  More companies are reaching 52 week highs than 52 week lows (nasdaq.com).

Spendaholics try to monetize the debt.  Companies try to decrease costs and reduce inventories.  School systems try to layoff teachers.  California had a yard sale and tried to loosen restrictions on offshore oil drilling.     

 

  

 

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