Good morning! As everyone has probably already seen, US companies cut more than half a million jobs in January. Which to the surprise of everyone was a lower job cut number than expected leading the futures higher this morning. After thinking about it, you realize that all those poeple are not going to be buying goods and services nor paying their bills anytime in the near future. And the fact remains that this will only begin to compound their problems and the economy.
Now, regarding Obama's pay cap for executives I can see it going both ways (more one than the other but I'll let you decide that). The first arguement is that it does prevent the over excessive salaries for horribly run companies which frankly should have been let to fail. On the other hand, the main reason that executives put their time and money into a company (and believe me they put more of these in than most people think) is mainly because in the past they have been incentivized to made the company as profitable and successful as physicall possible. As such, the more the company grew, the higher thier bonuses and pay structure was as a result. Its economics 101. Now that we have salary caps I think we are going to see a lot of our countries best business minds leave the industry.
S&P intra-day support and resistance levels.
