REBOUND OR DOUBLE DIP?
There are signs the economy is turning around. Most important positive indicator is the corporate profits have rebounded, according to
Dr. Mark Dotzur, chief economist Real Estate Center. In a free-market,
capitalistic system like America, profit growth is a key indicator. Companies are NOT hiring as uncertainity of capital gains & income tax
rates, cost of health care & possible increase in energy costs due to
“cap & trade”. Companies cannot project the future. Cash in businesses is $3 trillion – more than capital in Federal Reserve, FDIC,
Fannie Mae & Freddie Mac combined. To “insure” against uncertainity is
to HOARD CASH.
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