Bringing it HomePosted: July 19, 2011
News headlines from the Wall St. Journal on July 19, 2011:
Apple reports earnings of $7.31 billion…Sales
surged to $28.57 billion, topping expectations of
Goldman Misses Profit Mark, Plans Job Cuts
B of A Swings to Loss
Coke’s Profit Jumps 18%
DJIA’s 200-Point Rise Is Biggest in 2011
So, Bank of America drops 9 billion (mainly still due to the mortgage mess), and Goldman’s profit is significantly lower than expectations, and they plan to cut 1,000 jobs. Coke and Apple are up. Why would the market have such a good day, and what do these have or not have in common? As a rank outsider to the markets, but one who has owned and run substantial small business operations, I’d say this: Apple and Coke MAKE THINGS that people want. B of A and Goldman make money with other peoples’ money.
A CEO of a major communications company did a TV interview today and lamented some of our poor trade agreements and losing jobs overseas, and pointed out what a lot of us on the retail & service sector side of things (as opposed to high finance) have been shouting for quite a while now…we in the US need to get back to making things.
If we can’t make cheap consumer goods due to extremely low labor costs in other countries, how about making greener and more efficient energy-saving items, or large products that go into infrastructure where the shipping cost savings is enough to counteract the labor savings due to near-slave wages in certain countries?
Of course Coke is made here, and it’s easy to point out that Apple has most of its products produced overseas. Apple, however, designs and tests them here, they don’t just slap their name on someone else’s designs from overseas, and they are also retailed here and when necessary, repaired here. That takes good old American bodies…not as many as the manufacturing, but it all helps.