"Ford surprises with $1B profit; sees profit in '11".
"The earnings came despite an $800 MILLION REVENUE DROP. But Ford said it cut costs by $1 billion during the quarter, accomplished through LAYOFFS in North America and Europe, REDUCED pension and retiree health care costs and improvements in productivity and product development.
Chief financial officer Lewis Booth said the company took in $1.3 billion more than it spent in the quarter, an improvement over its $1 billion cash burn in the second quarter.
"That's a huge deal," Booth said.
Bottom Line: This recovery is likely to be VERY weak because, as the economy recovers, PEOPLE ARE STILL GETTING LAID OFF AND WITH UNEMPLOYMENT TOPPING 20 OR 25%, WHERE IS CONSUMER SPENDING GONNA COME FROM? CONSUMER SPENDING IS NECESSARY FOR SUSTAINED GROWTH
And CIT lost 2.3 billion of free tax payer money in the past year. The Federal Government keeps feeding Giant Corporations and then puts the burden of economic recovery on the "little guy" through involuntary tax burdens to be redeemed at a later date.
Consumers can not spend if they do not have jobs. Where is this mentality that suddenly all the people losing their homes and their jobs will have money to drive an economic recovery through spending and borrowing.
Credit card companies are now cutting limits and raising fees. The cost of borrowing is going up to the consumer.
Too many Harvard Grads running the show. Time to inject some common sense into the equation.
If Ford is smart, and it has shown to be much more astute than the other 2, they better keep that billion $ in cash. They contributed to increasing the unemployment rate and any sales that they got was attributed to Cash for Clunkers. Let's see how they do next year.
The growth as they say in the economy should trickle down to the people, in terms of savings and consumer spending. Christmas is in the offing let us see this quarter...
by cliffordh6 years ago
I was one of many individuals yesterday that, was disappointed in the Senateâ��s refusal to fund emergency unemployment benefits for millions of Americans across the country who, were in desperate need of it,...
by fishskinfreak20086 years ago
http://news.yahoo.com/s/nm/20100122/ts_nm/us_obama"Let me dispel this notion that we were somehow focused on that (healthcare) and so as a consequence not focused on the economy. First of all, all I think about is...
by fishskinfreak20085 years ago
Web-site/URL: http://finance.yahoo.com/news/Firsttime … 8.html?x=0Obviously, this is yet another sign that we are NOT fully on the way to recovery yet.
by American View5 years ago
Can you believe it. In response to a question at a town hall in Decorah, Iowa, Monday evening, President Obama said that when Congress returns in September, "I'll be putting forward...a very specific plan to boost...
by Moderndayslave5 years ago
With the income gap between the wealthiest American's and the soon to be decimated middle or working class ever increasing. How much more proof do you need that tax cuts for the wealthy isn't creating jobs or supplying...
by Ralph Deeds7 years ago
Paul Krugman's column in the NYTimes today 1-5-08 is entitled "Fighting Off Depression." In it he called the recent economic numbers "terrifying," not just in the U.S. but around the world....
Copyright © 2017 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.