Friday, October 19, 2012

October Surprise?

The Dow dropped 200 points today on 'below expectations' earning from McDonalds, GE, Google and others. It also happens to be the anniversary of the 1987 crash, the biggest since 29. Who was President then? (The Sainted Reagan) Today's drop wasn't a significant event given the size of the market number, but you wouldn't know it to listen to the media.









Anonymous said...

An explanation of how profits are "offshored" is the $30/week 12 year old child in Bangladesh makes soccer balls. Those balls are shipped in shipping containers by logistics companys to the US for the retail price. The payment is placed in an Cayman Island bank and the corporation offshores the profit from the revenue. The US corporations who recieve the soccer balls and retails them makes no profit on purpose because the profit is left outside the US. If the soccer balls were made in the US higher labor costs and taxes would reduce the potential profit by a significant margin. I learned this when working at Maersk Shipping Line where the "logistics" of offshore manufacturing was exposed to me by reading shipping documents from the containers I maintained.