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Baloney's Back as Profits Look Up!

This post in The Atlantic has it all.

But in case you are a jargon hater like me, you would prefer this after a few seconds of that.

It's baloney all over again!

Times are looking up, and yet there is the same behavior to be seen all around. Companies have started doing well - well, what else do you expect to happen after the phase when everyone was brutally getting shown the door out of the marketplace. People get fired, and the remaining start pulling their socks up. The bosses become more careful and number driven. Profits start trickling in spite of turbulent conditions. But all that's natural. If profits never trickled for a company that fired people for meeting its targets, something is seriously wrong. Too wrong to hide for the Fed. So, profits are natural. They are the babies of the free market.

Coming to think of that, don't we remember 'the invisible hand'?




And yet, America is going back to where it started, in the 20th Century that is. Blind to the actions of the Fed, age-old chart behavior, rising house prices, and easy finance coming back to haunt. Most Americans are behaving overtly hungry even after the worst is over. But there is food! But for how long? How much longer will it take companies like yours to get back to complacency mode? The post-Y2K-fear-turned-breather mode? How much longer will it take for you to give in to easy financing?

We all know a steady rise in prices is a healthy thing. 2% inflation was considered ideal, but things seem to have gotten somehow messed up over the last few decades. It's never been easy to meet value targets. Targets defined in terms of currency cannot be the real measure, especially in our times! And you know it.

The negative employment curve in spite of rising profits indicates Stress. Risk. And Fear.

Not good.

Pulling up is all about asking the question: have my profits enabled me to do more? have they made me more capable of helping my customers? are my profits able to buy more?

If you are answering No to these questions, you ought to be asking for real value creation.

Consult an expert, or find your way to our doorstep (the form's on the right!)






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