How The Latest Earnings Will Only Create More Rage At Corporate America
Jul. 27, 2010
Rhetoric about there being “two Americas” divided into the “haves and have nots” is all too common, but you should probably expect to see an uptick in that very soon.
Q2 earnings for American companies have been remarkable for how disconnected they seem from from the actual economy, as measured by the various weekly and monthly indicators. We don’t have to list the various jobs and housing numbers that have been just short of abysmal.
And yet earnings from a range of giants, like FedEx and DuPont (just out this morning), suggest that business is booming (or will imminently).
Now it could be that these good earnings will soon translate hiring, and everything will be great. But watch out if the divergence occurs, because that will mean fresh anger and scorn from politicians, and everyone else.