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Sunday, December 5, 2010

Profits in the Great Recession

Seems that if profits are booming (and they are), firms "should" be hiring (that is, if markets are efficient and quick to adjust). They're not, based on data from JP Morgan Chase and analysis from The Economist.
What are companies doing with all the money they are making? For now, sitting on it.
Seems like an example of the Thrift Paradox if I ever heard one.

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