The Earnings Lie Explained 07-15-12 mpg And Now Back To Reality And The Impossible Earnings Season Stepfunction Chart - (click to enlarge) - Special Note - A quote...."Why [is] the third quarter [going to be the test]? Simple: as Goldman's David Kostin explains, "consensus now expects year/year EPS growth to accelerate from 0% in 2Q, to 3% in 3Q to 17% in 4Q." Sorry, but this is not going to happen, and as more and more companies preannounce on the back of the global slowdown which many has seeing US GDP down to 1.3% in Q2, and sliding further in Q3 absent some massive QE program out of the Fed it is virtually guaranteed that the unchanged Earnings precedent that Q2 will set (and there is a very high probability that Q2 2012 will mark the first YoY drop in earnings since the unwind Great Financial Crisis) will continue into Q3 and likely Q4." - bold by website editor But that's EXACTLY what they
expect. They fully anticipate a massive program of
QE3 after the elections. They fully (in this website
editor's opinion) expect to translate this FX bonanza into
new "earnings" as long
as the Euro can be maintained at its artificially high
level versus the USD.
And they fully expect, once the Euro is allowed to collapses under the US-NRE's and Britain's continuous, relentless and LONG PLANNED Bankster assault, to re-translate their "earnings" back into Europe's brand new, massively devalued, sovereign currencies or the now massively devalued Euro (if it still survives, which is appearing less likely every day) for even more "earnings". They'll do so right before Bernie hits the electronic funds transfer button to provide the EU with "help", (remember folks, what "help" from the US-NRE really means) it's called "front-running the Fed". This massive destruction of the EU's economies while the Euro remained at its artificially elevated level which by the way, was not reflected in its large and growing publicly perceived risk for almost three years, offered five tactical advantages to the US-NRE's and Britain's parasites.
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