The only thing going up is stock prices
- Could it be that companies are reporting record profits?
- Senior corporate manager bonuses
- Motivation as senior managers is to
It seems that the only thing going up are stock prices. But why are stock prices rising when other indicators of the economy are falling?
Could it be that companies are reporting record profits? Those companies can be counted on a few fingers. How about reporting record earnings? Same thing. Are these companies producing better products and improved services? Not likely. In fact, they’re charging more for less value delivered.
What’s up with stock prices is senior corporate manager bonuses. Why? This is because their bonuses are paid based on one thing – increases in stock performance, not more sales, not more profits, only when the stock price goes up do they make larger bonuses.
Therefore, their motivation as senior managers is to employ every kind of trickery and manipulation in order to raise the stock price. That’s done by borrowing money at almost zero percent and using it to pad the books or buy back stock. They are cutting benefits to employees to make the bottom line look better. They are cheapening products, making them smaller, taking out key ingredients and replacing them with cheaper ones. They are cutting services and employing computers to answer questions. They are laying off employees and cooking the books any way they can to present a rosy quarterly picture. Anything legal, or illegal, and especially unethical is done to raise the stock price so incredibly wealthy people get richer.
QUESTION: What should readers take away from this message today?
ANSWER: That when you see companies promote their products as “new and improved” you should think the opposite.
QUESTION: Why is this information timely?
ANSWER: This information is timely because it seems that with all the trouble in the economy and prices going up on everything you need that the economy would be in better shape and you would be making more money in order to keep up. But you are not a senior executive.
QUESTION: How can readers best apply this information to their lives right now?
ANSWER: Be observant of how this manipulation to raise stock prices is being done and how you are affected. Avoiding any companies products and services who do not have the betterment of the customer in mind.
COMMENTARY: It seems that everyone is gaming the system. That’s because there is nothing left. This is the setup for the fall. No one cares about fixing or saving it, just squeezing the last dribble out of it before it all dries up and dies. This strategy can make you lose sight of anything that’s real. When all of this implodes people will need to recover from not only a broken economy, but a broken way of thinking.