[j271]

Most company earnings are suffering because of three factors:

1. Restructuring and goodwill impairment charges.

2. Accelerated depreciation charges due to short-lived technology investments.

3. Rising interest costs as a result of added debt.

Do 1 and 2 really matter, since they're non-cash charges? The money's already gone.

IMO, 3 is the one to keep an eye on because it affects cash available for future growth.

Opinions?

[STONEWALLS]

"Rising interest costs as a result of added debt."

.....IMHO a lot of that debt is a by-product of CEO self-enrichment...they borrowed money to drive up the share price so their options would be worth more...I expect when they write the market history of the 90s, it's going to all come down to two words: greed & options...

Good luck to everybody!

Stonewalls

[LS]

If anything, the Fed would LOWER rates again, thus lowering interest. The message from the Fed was that to do so now would suggest a lack of confidence. I think we are pretty well through the corporate "shuffle," and expect things to be low, slow, but gradually improving.

However, the international scene breaks all in favor of the U.S. as oil prices drop; exports to newly-freed countries increase; anti-Americanism falls in the Arab world as they see raw power (which is all they respect); and there is a small stimulus from a defense buildup.