Friday, April 27, 2012

Lack of Demand

by Bill McBride on 4/27/2012 11:05:00 PM

Just a reminder of why companies aren't investing more ... from Bruno Navarro at CNBC: Why Businesses Aren't Investing in the US: CEO

Businesses aren’t investing in the United States because of a lack of consumer demand, International Paper CEO John Faraci said Friday.

“I think this was all about consumer spending and demand. You know, the problem we have is there’s inadequate demand to create jobs. We know how to respond when there is demand,” he said ...

“Productivity has obviously been very good, so we’re creating more capacity with less resources. But at the end of the day, this is really about responding to demand, whether it’s automobiles or packaging products we make for a whole variety of industries and end users,”
It really isn't hard to understand [why certain companies aren't investing - these companies have adequate capacity to meet expected demand]. [added]

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