Dreadful Earnings, Dreadful Income and There is More Coming

This earnings period we realized we were going to have to keep an eye on top-line revenues — especially for those organizations doing a lot of business offshore.

They were terrible last one fourth, and they had a high chance of being terrible this one fourth. The only savior last one fourth was the capability to press better edges out of worse-than-expected revenues to produce better-than-expected earnings and the anticipations of QE3.

Well, this one fourth, there is no new QE to wish for, and organizations keep review frustrating top-line revenues with similarly frustrating bottom-line earnings. Plus, organizations have been diminishing their perspective for the long run.

So let us put all of that together:

• organizations keep battle to produce development in top-line earnings;
• control groups seem to have hit their restrict in how far they can cut expenses and enhance edges to produce reasonable bottom-line earnings out of poor revenues;
• the perspective for the near-term upcoming is harsh with Chinese suppliers, European countries and financial systems all over the globe reducing down; and
• nobody is anticipating the Fed to do anything new — on top of the $85 billion dollars that it is treating into the program each 30 days, that is — in the near future.

The Q3 earnings period has been a break, and it does not look like Q4 is forming up to be much better. Unless the U.S. The legislature is able to prevent the Financial High ledge and control groups start increasing their perspective for the long run, we could be in for some difficult periods forward.