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Pseudonym: Parikshah
1 Comment
The Real Threat of the Housing Bubble [view article]
Less than 18 months ago, as the economy steamed forward, popular articles were being published about the rates of wages to corporate earnings. Although within the historical band, wages could have risen 10% without corp earnings rising, and still remained in that historical band - they were at a low. So we knew companies would have to pay employees more in the future - or earn/grow less. In the interim, prices of goods that drove earning for these companies would have to come down so that people could afford them. Now that prices have come down and earnings growth is slowing, will anyone be able to pay more? Maybe its time for non-banking firms to up their pay. Mar 28 12:55 AM