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More details OK Scott I'm looking at some of the -- is right here and we see that they've got cash equivalents of about 48 billion so they could be look at -- -- making more acquisitions but.
Went up benchmark curve when -- when one of these opportunities like Cisco which is a real sort of sudden.
-- -- former high technology does this well.
Somebody's doing something right.
Life -- it's going to be hard to argue with the fact that they've done now well.
But we also have to remember that we've pushed the bar so low if you take a look at the expectations and that start maybe say six or nine months ago.
It's a much different story but -- -- would set the bar -- they beat the market's gonna love and I -- you know hands -- I can't fight the tape but ultimately we're gonna see that you know what.
Let's see if Cisco actually -- that cash our corporations have.
More money on the balance sheets they've had since 1955.
It's not making its way out of the economy that's what we need to seek.
John let me guess you inhibit they have warned Cisco -- morning about some weakness ahead global weakness specially.
Looking ahead but these numbers pretty good we have really got into the weeds -- -- -- what's your initial reaction I think it's it's.
Typical I think it's too -- what's gonna.
Corporate profits continue surprised slightly on the upside.
I think Scott's right we've lowered the bar what's wrong with that -- the yield on the ten year treasuries one point 8% the market yields more than that if I by the stock market ten years from now has not moved at all out of ten years.
But still be treasuries what's wrong with that.
You know Cisco boosted its dividend that of course is very attractive for a lot of investors but.
You know Scott you -- saying you know let's say -- put the cash to work they just bought EDS.
In the UK for three billion pounds and that was up.
The big acquisition a big -- to swallow.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Employees being hired and those employees making money so the -- -- houses we're not seeing that's so they require somebody.
I'm actually an acquisition they're probably gonna let some people go so what the end of the day.
That cash as he put out and the banks are guilty of this as well it needs to make its way in the economy and right now it's not.
And I a lot of that has -- -- also the fact we've got an election coming up a lot of these CEOs.
Don't have a lot of direction they don't really know what to do the -- so we're going to be a probably in this stalemate or the stagnation -- this may lays until at least January.
And let's keep in mind Cisco has had.
Thousands of layoffs -- just spoke to John Chambers a week and a half ago in London at the Olympics because they were wiring the entire city of London.
-- the Olympics here's what he said about future layoffs.
When you're growing in the mid teens we built up an overhead structure that -- -- they can never.
And our growth is now occurring in emerging markets certain sections of the US and certain other sections are struggling so this is really about -- resources around.
It's about positioning ourselves for -- the industry needs to -- We have -- fear about the future competing with the Chinese competitors are US competitors.
-- -- -- Cisco was reflecting what a lot of companies have done they've hit their bottom line by clipping and trimming their top line I'm not saying this is that case but.
People have to be careful when they -- I was somebody -- out of the ballpark on earnings but they missed on revenues.
-- well I I sort of think that the the top one sort of follows the bottom -- at some point in time.
One of the things you have to do is make yourself extremely profitable -- the more -- -- -- become.
The more important that extra dollar revenue becomes too in the -- you're likely to stretch for -- this all takes -- while announcing it's easy for an I think that gradually you rationalize corporations and then corporations abrupt rise -- that rationalize -- so.
It's not quick it's IDC but I think that's why eventually we see profits go higher in the markets are reflecting that at all side --