Steve Ricchiuto broke down the current economic situation in America, summarizing that share buy backs have been holding up the “E” in the PE equation and how the only way to sustain earnings now will be to fire people. Hence, the unemployment rate will begin to rise. He also said the Fed’s ‘dot plot’ was entirely useless.
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Joined Nov 10, 2007
23,433 Blog Posts
Yep – in the grand scheme of things, all this M&A does not create jobs it makes them redundant. 100% agree unemployment numbers begins to climb soon. Couple that with the recent 94M number posted for those not in the workforce and that 50%+ odds of recession for Deutsche Bank models looks right.