Gary E. Marsella www.garyemarsella.com
Corporate profits & GDP
September 14, 2011
Corporate profits are up but gross domestic product has not returned to its prerecession peak. Liquidity is not the problem.
The Wall St Journal of August 26, 2011 points out that despite low interest rates, the economy is not growing but a lack of demand is. Corporate balance sheets are
in tremendous shape. Hiring remains weak and cash levels are rising, but where
are the willing buyers? Two excellent columns in the Wall Street Journal on September 1, 2011 contrast the dilemma faced by the Obama “brain trust” on two
critical comments. The headlines read “Arctic Riches Lure Exployers which details the energy industry and
its interest in the 12 million square miles above the Artic Circle, estimated to contain the oil and gas equivalent of 412 billion barrels of oil or about 22%
of the world’s undiscovered oil and gas.On the same
page another Journal column points out that after receiving a $535 million federal loan, high profile solar panel maker Solyndra plans to file for bankruptcy protection. This is not the first and only
government sponsored solar venture. Here we are with hugh sources of fossil fuels waiting to be tapped
but we are wasting capital on Obama’s dreams of green energy.
To set the tone for the coming 2012 election, it is worthwhile to comment on the strategies of the Obama Democrats. Here is a quote on September 5, 2011 from Obama
advocate Jimmy Hoffa Jr, Teamsters President:
“They got a war, they got a war with us and
there’s only going to be one winner. We’re going to win that war… President Obama, this is your army. We are ready to march. Let’s take these
son of a bitches out and give America back to an America where we belong.”
Is this the type of language Obama condones. Will the real Obama please stand up.
Obama’s new “jobsplan” followed by a 300 point decline in the Dow Jones industrials looks like a re-cycled speech that was recently given.
To add insult to the brave victims of 9/11, here comes Mayor Bloomberg almost apologizing for our response to
The Trade Center Bombing and asking Americans to look at both sides of the tragedy.
I am not interested in forgiving the Islamists bombers, I want to support eternal vigilance and never let our guard down.
Gary E. Marsella
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