The Stock Market and The Real World......

To illustrate the complete disconnect between Wall Street and Main Street we have this article. 

The Dow just past 17,000 (for the first time ever) and everyone is popping the Champaign. 

This story highlights 7 companies that led the way to the greatest stock market the world has ever seen.

Clearly this must mean the economy is booming. Clearly this must mean American workers are reeping the rewards of skyrocketing paychecks and incredible job security. Just waiting for the announcement employee pension are coming back along with lots of new employee benefits.

Isn’t that what that means?

After all a rising tide raises all ships. Isn’t that what they tell us?

http://americasmarkets.usatoday.com/2014/07/03/7-dow-stocks-that-led-the-charge-to-17000/

So lets take a closer look at the 7 companies.

Caterpillar The heavy-equipment maker is up 20.7% in 2014 — and 292.6% since the March 2009

Also since 2009 Caterpillar took Billions in Taxpayer provided stimulus money and then laid off 13,000 + workers.
http://www.ibtimes.com/caterpillar-cat-slashing-jobs-closing-plants-across-world-equipment-demands-global-mining-industry

Intel - The computer-chip maker is up 19.4% in 2014 — and 95.5% since March 2009.

They also laid off over 5,000 employees since 2009.
http://www.mercurynews.com/60-second-business-break/ci_24935442/biz-break-intel-cut-more-than-5-000

Merck is up 18.0% in 2014 — and 152.4% since March 2009.

Also Laid off-13,000 in 2011. Another 8,500 in 2014
http://www.fiercepharma.com/special-reports/2013s-largest-pharma-layoffs-merck

Johnson and Johnson –The health care giant is up 15.6% in 2014 — and 89.9% since March 2009.

They have also managed many recalls on Tylenol (which is still difficult to find…… Not that anyone would want to consume it even if it was available). Plus they laid off over 8100 employees since in 2009.
http://www.cbsnews.com/news/j038j-layoffs-the-jobs-that-are-safest-and-those-that-arent/

Disney The theme park, moviemaker and media giant is up 13.1% in 2014 — and 365.8% since March 2009.

They also laid off over 700 + workers.
http://www.reuters.com/article/2014/03/06/us-disney-layoffs-idUSBREA2520520140306

Microsoft The computer-software giant is up 11.9% in 2014 — and 149.8% since March 2009.

Also laid off over 5000 + workers since 2009.
http://abcnews.go.com/Business/story?id=6711586

Cisco The computer-networking firm is up 11.5% in 2014 — and 60.9% since March 2009.

Also laid off over 10,500 people.
http://www.forbes.com/sites/markrogowsky/2013/08/15/ciscos-chambers-were-swimming-in-profits-youre-fired/

5 years….7 companies……55,000 layoffs….record stock market.

See how that all works? Any questions?

I will say it again….If you can’t sell something, then you must cut something. Wall Street doesn’t care either way…… as long as the numbers look good…..for them.

Even if these companies do sell something….And the numbers look good. They still might cut you anyway. Cutting always makes the numbers look better. Companies love doing it.