U.S. Economy Splits – Right on Schedule
Last week the Wall St. Journal ran a front page headline story, “Economy Splits.” It talked about the unusual situation of having tech companies doing really well (particularly large, global tech companies), while the other half of the economy (housing, construction, finance) did poorly.
SNS Members were advised of this situation last fall, and are ready for it. Top managers at Silicon Valley Bank should also find this familiar territory, as it was the subject of our talk together a couple of months ago.
It will no longer be useful to our members or readers to refer solely to averages when discussing or thinking about the U.S. economy; there are two economies, at least, going in different directions.
IBM, eBay (a bit surprising), Microsoft, Intel, Dell, HP, Google are setting records or turning in very strong earnings. Management at Washington Mutual just got shouted out of the building.