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FBN’s David Asman on why corporate earnings may be a sign of a bearish economy.
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-- more and more bosses can't stand it anymore and they are circling the wagons I don't know about you.
The right now that makes me feel like caused a lot of Indians.
Right now.
Not a lot of home to date it has been on whether its earnings verbal or is just a matter time before economy follows what -- data.
Well it's a question and which which is following which.
You know that old phrase by Maggie -- eventually you run out of other people's money.
You know the fact is is that companies have been relying on a lot of things other than customers which is where they should be getting their money they have been relying.
On the Federal Reserve Bank to print a lot of cheap money which helps them in their borrowing -- they have been removed relying on a lot of government contracts all these things other.
Then customer money which should be their basic short that should be the main way they make money it hasn't been and eventually.
It's caught up -- because what's happened is customers don't have as much money and customers are very worried about the future and unlike governments.
Customers are playing it safe they are not spending more money than they have which means are keeping more money in their pocket which means that corporations are getting.
Less money.
What what's happening now as you mentioned before we have big companies like DuPont laying off 15100 workers.
The CEO of DuPont what's the reason for this he says weaker than expected demand in titanium dioxide.
And photovoltaic.
Markets -- I join -- I don't so as titanium market shows of rural state like you can let me translated to English it means that the solar business went bust.
That is there was it wasn't just your taxpayer dollars that were wasted -- billion dollars shlinder projects a lot of companies followed the government because they figured.
-- government billions go our money goes and it'll help -- -- bullet didn't.
Not only -- -- go bust but a lot of the investments that DuPont made -- went bust then you have Xerox they say they were her -- strong dollar they also say.
Quote tight government budgets have hurt our bottom why what does that mean.
That means that the government hasn't been spending money in Xerox the way they used to which means a lot of government bureaucracies -- not been using Xerox to print.
These government rules and regulations like they used to maybe that's some good news but the bottom line is it hurts the bottom line of -- and 3 AM.
Citing currency impacts that is they've been trying to make money -- all these currency when that.
Euro was worth a little more they do this and when the euros worth a little as they do that.
Will eventually instead of focusing on what the customer wants -- the customer needs.
They're focusing on all these other things and that's what's hurting the bottom line of a lot of not all of them may McDonald's still sells hamburgers thank god it may be -- pretty good job of that.
They're still hurting as a result of people not going out as much but these companies that have been relying on things other than the customers are hurting.
And they could be leading us -- were recession well you know you can Savard cutting your -- -- that's right after that the revenues thank you date and our.
