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K Smith

K Smith
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  • Thinking of Buying a Dividend Stock? Read This First [View article]
    The reason that firms are not hiring is that there is too much economic uncertainty.

    Businesses fear declining revenues related to the expiration of the Bush tax cuts. They fear rising expenses related to the new health care law. Costs in Massachusetts rose significantly after they implemented their new system - the national law has much in common with the Massachusetts system.

    Small business owners fear government looting of their 401Ks and SEPs. The government has already hit state pension funds, convincing trustees of these plans to "invest" in bank debt. Transferring debt to private pensions - moving the debt bubble from bank and Fed balance sheets to private pensions - is not far behind. Anybody with pension has been hit by declines in the market, and we will all take another hit when we are forced by government to bail out the banks and the Fed by "investing" in the debt bubble.

    It is a fact that when you anticipate flat or declining revenues and rising expenses, you do not add to expenses by hiring new staff.

    Unless you are the federal government.
    Jul 9, 2010. 11:27 PM | 4 Likes Like |Link to Comment
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