But it will for them. To wit:
By most measures, Harley-Davidson has been having a rough ride.
Motorcycle sales are falling in 2010, as they have for each of the last three years. The company does not expect a turnaround anytime soon.
But despite that drought, Harley’s profits are rising — soaring, in fact. Last week, Harley reported a $71 million profit in the second quarter, more than triple what it earned a year ago.
How could that possibly be, you ask?
This seeming contradiction — falling sales and rising profits — is one reason the mood on Wall Street is so much more buoyant than in households, where pessimism runs deep and joblessness shows few signs of easing.
Many companies are focusing on cost-cutting to keep profits growing, but the benefits are mostly going to shareholders instead of the broader economy, as management conserves cash rather than bolstering hiring and production.
So that’s why things look good and the government is crowing about how they’ve saved us, saying it ‘could be worse.’ Every metric except the ones directly affecting you and I look good. The rich guys fire us, make more profit, shareholders give the thumbs up, and the cycle repeats. And much of this is currently funded by government dollars and low-interest loans from the Fed to people with first access to money. You and I can’t borrow money from the Fed at .25%, but the 18 banks allowed to do so are making money hand over fist now. While you and I sink into the debt and despair of joblessness.