Naked Capitalism's Yves Smith, along with Rob Parenteau, wrote an op-ed in the New York Times. It brings to light corporations are sitting on profits and not reinvesting in their companies and America.
Over the past decade and a half, corporations have been saving more and investing less in their own businesses. A 2005 report from JPMorgan Research noted with concern that, since 2002, American corporations on average ran a net financial surplus of 1.7 percent of the gross domestic product — a drastic change from the previous 40 years, when they had maintained an average deficit of 1.2 percent of G.D.P.
They mention the obsession with quarterly profits as one reason corporations are sitting on wads of cash. Investors are also in part to blame. The minute a quarterly earnings miss or quarterly profits are not bigger than the last, investors pummel and punish a stock.
Also mentioned the reason corporations are sitting on profits and not reinvesting is to pay obscene executive compensation packages.
The point is to create corporate tax code changes to make corporations reinvest those profits back into their companies.
This just shocks me but is such a pleasant surprise. Paul Otellini, Intel CEO called on other corporations to invest in the United States.
What I'm asking is that other companies join us
This $7 billion dollar 32nm FAB announcement plus the new corporate patriotism speech won the ear of the President.
Now this is a change, a shock. Intel is even shutting down a FAB in China.
Intel has been notorious to labor arbitrage workers, pay less than other chip manufacturers and offshore outsource.
Just like every other corporation, Intel seemed to care less about the United States, it's workers and the national economy...so whammo, something has significantly changed.
One of the most troublesome aspects of Obama’s stimulus plan is the lack of attention to rail transport. Just look at this graph to see why.
So, I consider this article by Phillip Longman one of the most important articles of the new year, because it clearly points to the one of the most effective means for moving the economy off the basis of “oil-for-paper.” There are enough references to other studies, going back to a 1970s National Academy of Science project that identified the specific lines most suitable to electrification (electrified railroads, which are common in Europe, are twenty times more fuel efficient than trucks).
Check this out about China playing a brazenly rigged game (duh) in their stock markets:
the government is pulling out all the stops to try to provoke a rally this summer ahead of the Olympic Games.
Earlier in the week, the Chinese government limited block trades in a way that it hoped would reduce the volatility that has wiped more than $2 trillion in market cap off the market since last year. On another day, it imposed a limit on casino growth in the booming gambling city of Macau, causing a surge in shares of the casinos that are already there, including the big Las Vegas boys.
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