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The US Stock Market (especially the financial sector running on government bail outs and Fed assistance) has surely recovered but the business sector has apparently still not. UPS is also a barometer of world trade as they are in the business parcel package movement business.
The 49% drop in UPS profits vs. 17% drop in sales means that they are also operating below a certain critical mass.
What happens after the fire fighting?
The higher the DOW went in the current overdrive, the greater the gravity of a pullback later to reflect both the economic realities on the ground and reduced government financial assistance due to mounting deficits pressures which is currently being suspended. In the short term, fighting a financial collapse is more important then any deficits worries. At some point, the government’s hand must get off from the free market function. A “market collapse” is the government‘s clear concern but a “market decline”, so long as it is not extreme, is not the concern of the government. There is no argument that a total collapse has been averted by the Obama administration.
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my response to ABOVE market comments
UPS and Fedex performances are barometer of economic activities…that’s why last month when Fedex did much better than expectations but forward view weak market made excuse to fall…comparison with 1 year ago gives few pointers since global meltdown + 10% unemployment of course revenue & profit falls…what is giving market strength now is not the financials but because of broad based performance above expectations…
All the wall street/CNBC pundits were criticising Obama and want Geithner sacked on TARP and saving wall street but were proven WRONG…the same sang negative tunes on GM Chrysler and said NOT possible to emerge from bankruptcy in 2 months. They were proven WRONG…wall street done themselves in and the whole world with them and armchairs can only criticise because they no need to do, to execute and solve problems that Obama, Geithner, his energy healthcare and other serious folks have to do and achieve…so wall street+ armchair are doing what they usually do so well = take $ don’t do any work screw things up and criticise others cleaning up their shit and making US and the world healthy again…
The same jokers crying wolf caused Dow to drop to 6400. Now that Obama team got financials stabilize, they find something else to scaremonger…of course stock market will go up & down and overcorrect in both directions…that is not Obama’s job…
That’s why the team is focus on healthcare, energy/environment etc after solving the more immediate financial system threats, and GM/Chrysler collapse…
Of course the government’s hand will get off the free market function…government never intended to get on in the first place but the idiots who collect $b bonus and shit all over the place beg the government to come clean up so they can criticise the clean up…”Nationalisation” and “government interference” are the dumbest of arguments…if Warren Buffet puts USD180b guarantee or owns USD45b of a company’s shares will he not “interfere” and let the idiots continue to screw the companies, screw America and the world?
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