The depression in the economy deepens - Sales growth lagging the profits badly
Marla Guthrie
Jul. 25, 2009

The economic depression is deepening the economy. In US, the Sales growth is lagging badly behind profits. Second-quarter revenue at Caterpillar Inc. and Freeport- McMoRan Copper & Gold Inc. tumbled more than 30 percent from a year earlier, though earnings topped the average of analysts’ predictions. These are signs of desperation on behalf of management to earn their bonus to show decent profits by hook or crook. But in reality the S&P 500 companies suffer drain in cash flow, sales and increase in financial risks.

Revenue at 140 companies in the S&P 500 reporting this week, many of them bellwethers for the American economy, fell on average 12 percent from a year ago although many beat the analyst estimate of profit.

The US GDP mostlikely declined 1.8 percent in the three months ended June 30, marking the fourth consecutive drop and the longest falling streak since quarterly records started in 1947.

The lagging of sales behind the profits is an early indication that the economic depression is at a very early stage and may run its course for decades mimicking the Japanese economy.

The depression in the economy deepens - Sales growth lagging the profits badly
Marla Guthrie
The lagging of sales behind the profits is an early indication that the economic depression is at a very early stage and may run its course for decades mimicking the Japanese economy.
READ MORE>>

Treasury rates can zoom in the coming months creating a scenario for stock market crash in September October 2009
Peter Oberois
The Treasury yield can reach 7 to 9% all on a sudden. That can be the sudden and chilling recipe for a massive stock market crash in September-October, 2009.
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British GDP downtrend confirms slow and steady stealth depression – it is time to dump sterling and buy the euro
Sam Adelton
What is the net effect on the pound sterling? It is in a deep down trend says some analysts. It si time to go long the euro and short the sterling.
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4,000 lobyists and more than $12 billion dollars floating in Washington to stop Obama’s healthcare bill – conservative Democrats rallying for special interests along with the Republicans
Tania Solanki
The conservative Democrats are rallying for special interests along with the Republicans. It is a shame. But that is American democracy – money has a much larger say than votes of common people who are not the richest!
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Data show German economic recovery faster than US, UK, and Japan – Buy Euro sell the Dollar, Pound, and Yen
Peter Oberois
German GDP expansion in the coming quarters will far exceed that of contracting GDPs of Japan, UK, and US. What does that sound for Euro, Yen, Sterling and Dollar?
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After hours Microsoft slump by 7% Dow reversal imminent – bear market alive and well
Sam Adelton
According to economic think tanks, the bear market is alive and well. The reflex bear rally is finally coming to an end as August-September nears. The Dow can crash in September-October time frame.
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