Friday, January 14, 2011

Eight is Enough?

Barring the unthinkable...that is a stock market able to fall more than 0.2% on the close, we shall finish with a 7th straight up week.  Next week we have a holiday shortened week but the barrage of earnings begin.  As always the global masters of the universe (US mulitnationals) report the first few weeks of earnings season, so one would expect the normal revenue surge from overseas emerging markets, cost savings from the slashing and burning of American labor, tax rate gifts from various lobbying efforts & global tax arbitrage.... and the like.  Indeed 15 multinational CFOs will meet with Geithner this afternoon to make sure any and all corporate tax policy revision in no way takes away their favored goodies.  Otherwise they will claim they cannot create jobs for Chinese and Indians.  (this is where they trot out the dogma about egregious 35% tax rates they suffer under, whereas in reality the only people paying that rate is small business, while our multinationals are playing 'dutch sandwich'* or 'double irish' to make sure they pay an effective 17% or less.)

*dutch sandwich?? see here.

With the unshortable market packing away 7 straight up weeks we shall see if eight is enough. 

[Oct 10, 2010: Eaton's Combination of Domestic Cost Cutting and Foreign Sales Displays the Power of Multinational Industrials]
[Oct 21, 2010: Caterpillar Scores with Now Redundant Playbook - Slashed Domestic Labor + Emerging Market Growth = Mad Money]

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