"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...
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