Recession Hits U.S. Profits; Economy Might Be Next

[swag]

Source: Bloomberg

Dec. 3 (Bloomberg) -- U.S. corporate profits are in a recession, and the entire economy may not be far behind.

Slower sales and higher energy and labor costs are forcing companies from Bear Stearns Cos. to Pitney Bowes Inc. to reduce spending and hiring. Their efforts to keep earnings from eroding even further raise the risk that the economy, already weakened by the steepest housing slide since 1991, may shrink sometime next year.

``The earnings recession has already arrived,'' says David Rosenberg, North America economist for Merrill Lynch & Co. in New York. ``We are going to see an economic recession in '08.''

Corporate profits, as measured by the Commerce Department, fell at an annual rate of $19.3 billion in the third quarter from the second, as domestic earnings dropped by $41.2 billion. The drag from sagging U.S. sales and huge writedowns offset robust earnings abroad, fueled by the weak U.S dollar. The fourth quarter may be an even bigger bust.



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a_TgRes4VjjU&refer=home

[OHdem10]

1. This is bound to happen sooner or later

When you fire your customers(American Consummer's) by relocating
jobs elsewhere, outsouce other jobs, American Consumer's lose
their income---They cannot buy all this merchandise made with
cheap labor. Many many many cannot even afford the cheap stuff.

The day of reckoning is getting closer.

[MilesColtrane]

2. The good news: a recession in '08 almost ensures a Democratic House, Senate, and White House.

The bad news: the country's all ready so far gone they won't be able to do anything about it. ( and we'll all be living under an underpass. )

[Auggie]

6. The question is how bad will the pukes let it get?

That'll be the ultimate fuck you to the Democrats -- leave them a mess that sets the GOP up for victory in 2012.

[L0oniX]

8. I've used that same argument for letting the repukes win 2008 n/t

[central scrutinizer]

3. But CEO salaries, bonuses and perks are not in recession

And that is the beauty of the almighty invisible hand of the market.

[Anarcho-Socialist]

4. Yeah, you've got that right

[llmart]

5. Don't forget.......

there's no recession for defense contractors.

[Union Thug]

7. Yes, let's blame it all on labor costs...

Don't worry, now that we know labor is the problem there is yet another excuse to take what little of the table scraps we currently struggle for and channel them upwards into some CEO's salary.

[HughBeaumont]

9. "Why can't these gosh-darned employees just work for FREE???"

"Much as we would have them believe they can, the only way they're gettin' NEAR my mansion is with a mob and lots of guns . .. hee hee . . . ha ha . .. Ah HA HA HA HAH AAAA! I'm sorry, I couldn't say that with a straight face. Those dumb wage slaves are so HAPPY where they are. I don't have to worry about a THING."

Keep-a BLAMING them damned workers, MSM!

[flashl]

10. Since K-mart fired its older managers, it's been a mystery to me ...

The longevity of the blatant denial about the harm of excluding the consumer/worker from the S&D economics equation.

I can not begin to imagine how many Americans have been rendered "invisible" using this magical thinking.

[allisonthegreat]

12. My neighbor is a manager for Kmart. Their health plan is a piece

of shit! Wouldn't be surprised if we have to start over after these antics and crap spewing from this Administration.

[Javaman]

11. "Economy Might Be Next "

Might be???

Where the fuck do these people live? Are they protected by some sort of bubble?

Oh that's right, they are either part of the 29% or a member of the have-mores.

christ!

[Orsino]

13. They ought to check with some American workers...

...rather than printing the press releases of the aristocracy.

[Deja Q]

14. It's a good thing.

Nobody will need to buy gas to get to work.

Not as much food will be purchased; so that eases the growing fields.

Ditto for water, so no need to worry about shortages.


Anything else everybody here wants to tell me?

[swag]

15. Yes. This is what I want to tell you:

Ice cream has no bones.

[Deja Q]

16. Splendid. It's good to know I'm wrong.

So maybe others on DU are wrong and jump to wild conclusions too? :)

[swag]

17. I didn't say you were wrong.

That was just what I wanted to tell you.