Investment Falls Off a Cliff

Here comes Obama’s double dip.

U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery.

Motorola CEO Greg Brown warned Congress that inaction on the ‘fiscal cliff’ will undermine the U.S. economy; Intel announced the retirement of CEO Paul Otellini; Netpage’s CEO Paul Morris joins Digits to discuss his new interactive app.

Half of the nation’s 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.

Nationwide, business investment in equipment and software—a measure of economic vitality in the corporate sector—stalled in the third quarter for the first time since early 2009. Corporate investment in new buildings has declined.

Naturally, hiring is also plunging and layoffs are rising. Obama’s solution is to reduce corporate profits via tax increases. That should fix things. That should fix them good.

Elections have consequences and this is for what Americans voted.

More at the Wall Street Journal.

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6 Responses to Investment Falls Off a Cliff

  1. Frank in Texas says:

    Sounds like things are going just the way Obama planned. This just means more people on the dole who can vote for Democrats so that we can have more of the same. Cloward-Piven anyone?

  2. Uke says:

    Obama: “Nice economic superpower ya got there. Be a shame if anything should happen to it…”

  3. Tatersalad says:

    This picture presents America with two of the most crooked assholes on the face of the earth, Both acting like they know something and can’t agree on which one it is so they put it off for another 6 months and blame the Republicans!

  4. BaconNeggs says:

    Double Dips and Fiscal Cliffs, I hate these media euphemisms, that blur serious problems and make them sound trendy.

    Many politicians need to go to a group recovery program like the Alcoholics do.

    I am a Spendaholic and I …

    All things in moderation and that includes economic stimulation and taxation.
    In Obama’s case he has gone from getting his economic highs on special occasions and some weekends and now he is shooting up everyday.

  5. Locke n Load says:

    B&E, thats about as fine an analogy as it gets, roflmao.

    Btw, I HAVE mentioned freight on the load boards is off 60% fromn this time last year, right? Ominous my firends, ominous. Last time it looked like this was AFTER the crash in 2008

    Before the election I likened the business climate to a collective ‘deep breath’, waiting for the results meant waiting to do ANYthing. Now that we have the election out of the way you can smell the exhale, no? Smells like death. Nobody will do anything until they have to, commerce is going to dry up. JIT and price haggling while simultaneously trying to pack every shipment to the gills (weight) at the last minute is increasing. Shippers are turning into assholes, price wars are already underway. All this with the backdrop of 30-50% higher fuel than 18 months ago means truckers are getting killed.

    Remember that bit about the 330,000 new jobs needed in the next 10 years for transportation? BS, pure BS. Freight doesn’t support it. Only way thats possible is if they chase every owner-op out of business and continue the 50% annual turnover rates in the big firms.

  6. Jim22 says:

    Obama looks uncomfortable in western clothing. We will know something has changed when he shows up in middle-eastern garb.