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Today the mainstream media is celebrating the faux recovery on the basis of the balance-sheet pretentions of merely two companies. I'm not going to dwell on this, simply because such pure propaganda is becoming so thinly veiled that reality is going to overtake it in relatively short order anyway. (Just wait until the flood of city, county and State reports following the end of the fiscal year in July).
The case of Greece is an excellent parallel example of how quickly such pigeons can come home to roost: Three weeks ago the Greek government stoutly asserted that a bailout was unlikely to be necessary; and yet today, they have already pushed the panic button with an ASAP request for roughly $60 billion, all told (They need $75 in the next couple of months). What changed? Absolutely nothing. They simply maintained a bluff until it was absolutely impossible to keep up the charade a moment longer.
My point is that exactly the same spin-game is being played here in the good 'ol USSA. It's merely that the scope of the deception is immeasurably more profound. After all, you don't see ex-Goldman Sachs employees with top postions in the Greek government. So in this country, the Boyz are not going to stop digging a vast pit of even greater debt until they reach absolute bedrock, at which time the entire country will plunge to the bottom --kitchen sink and all-- in the relative blink of an eye. In the meantime, we can thus expect companies like CAT and WHIRL to maintain their appearances of profitablity until, "suddenly," there's nothing left but three secretaries, fifty lawyers, the office janitor and a CEO with a new bonus.
So. Recovery: Fact or Fiction? You decide:
Today's Yahoo headline: Whirlpool 1Q profit more than doubles, sales rise
Whirlpool 1st-quarter profit more than doubles as sales of its appliances improve (sales of appliances? To whom??)
How they did it:
Whirlpool Layoffs Begin: 465 Workers on their Last Shift Today
By: Michael Whitney
March 26, 2010
"Union officials say Friday was the last day for 465 workers at the plant. Whirlpool announced last year that it would shut down the 1,100-worker refrigerator factory and move production to Mexico.
"AFL-CIO President Richard Trumka led 1500 people in a march earlier this year to protest the move to Mexico. The plant, which currently employs 1100 people, will shut down by the end of June.
"This marks yet another entry in the long record of American companies killing American jobs in search of cheap labor. And for what? A 77% raise for its CEO, plus $19 million in stimulus funds."
Today's Yahoo headline: Caterpillar rebounds from loss; boosts outlook
Caterpillar reports $233M 1Q profit, boosts outlook for 2010 on improving economy.
How they did it: [i.e. "rebound" from a loss]
Caterpillar layoffs: Company announces 2,200 job cuts.
More than 1,500 of those layoffs will be in Illinois.
By James P Miller
March 18, 2009
"Caterpillar Inc., gearing down production further in response to eroding global demand, disclosed plans Tuesday to idle more than 2,200 U.S. workers, including 1,526 in Illinois."
In what way is Wall Street like the Planet of the Apes? Because the gorillas have all the weapons, nets and horses, and ride around all day shooting the human beings.
Disclosure: No current stock or futures positions.
Welcome to the Matrix.