Third Quarter Earnings and Government Stimulus

by Laura Ehrenberg-Chesler on October 17, 2009

in Earnings,Fiscal Policy

While reading an article about third quarter earnings this morning in Barron’s, it occurred to me that the better than expected results may be more than meets the eye.  There has been much concern from professional investors that as soon as the government stimulus goes away, earnings, and more importantly revenues, will decline again.

Yet, even government reports acknowledge that a large percentage of the stimulus has not yet reached the private sector.  And, as we know, it may never do so.

Therefore, one might reach the conclusion that the earnings and revenue gains were achieved with little or no help from the so called stimulus package.  This recovery may be for real.

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