Friday, 7 June 2013

Finally... got to the root. Almost

Have been looking at IBM's numbers and a few ore companies numbers and though I knew something was wrong and it doesnt seem right, I couldnt get the right links to prove to myself that the lingering hypothesis in my mind can be proven factually and graphically... till I got the gem now.


In order for profitability to surge, despite rather weak revenue growth, corporations have resorted to four primary weapons: wage reduction, productivity increases, labor suppression and stock buybacks. The problem is that each of these tools create a mirage of corporate profitability. Furthermore, as I will discuss below, each have a negative impact on investors and/or the economy.

Link here