It’s all about the “bottom” line.

When accounting rules were changed in Feb/Mar to fictitiously inflate the balance sheets and end the required write-downs, the “bottom line” became fictitious as well - Mark to Fantasy. Coupled with banks doing everything possible to keep underwater loans on the books in order to avoid restated the actual, you have a false profit line.

And for industry, capital investment and such was forecast at numbers 10%+ higher on the top line than now being seen - for the short term cutting inventory and staff will keep the numbers “profitable” but it is only a matter of time before the fixed overheads start to overwhelm the bottom line. It is the TOP LINE that drives growth and profits.

Look at the 25% DEGRADATION in exports, even greater numbers in imports (THAT IS WHY THE BALANCE OF TRADE SHRANK!) and you see an economy shrinking everywhere BUT the fictitious stock market. Reality sets in again with horrible retail numbers in Oct/Nov, as we further descend into the abyss and the ignorant politicians attempt to SPEND their way to prosperity - with no jobs to pay the taxes and increase government “revenues”.

irish.

Related Posts:

• The Consumer Price Index has increased 2.35 % since January 2009.
• 3Q company earning reports will crash the market.
• A Depression Never Ends (1929-2009)
• The change in accounting rules could have negative effective that worse than you thought.
• Housing will come down to 50% of what it was at the peak.

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