In response to:

Cutting Jobs to the Bone

Pistol Wrote: Jan 13, 2013 8:25 AM
Dr. Galbraith. How can these liberals have so much intelligence and make so little use of it? I used to ask my son what he learned in school. 2 responses I remember: he said Dad, when a fool asks a wise man a question, and the wise man answers, the wise man learns more from the question than the fool learns from the answer. And: Dad, when you have a powerful mind, you can use it to really eff your self up. Not a dumb kid.

Here’s my quandary. 

From an investment point of view, do I consider the fact that companies are, once again, laying people off as a good thing and therefore worthy of my investment dollar, or, is the downsizing a sign that the company’s business is faltering, and therefore, not worthy of my investment dollar? 

The Keynesian and current Wall Street position is that the less workers, the bigger the profit.  They call that productivity, and theoretically, it’s great for stock prices. 

The recent announcement by American Express of 5,400 workers being...