End of the day blues: Dow drops over 500 points (again), GroupOn reports higher revenue, as well as more losses
It’s really a toss up which is more depressing, watching the market fall over 500 points again, or hearing another politician explain that if only we cut spending to the bone growth would somehow return to the economy. The explanation for the theory is really never explained, but not matter, I just heard a commentator on NPR explain that today’s huge drop was caused by the Fed’s announcement that they would hold interest rates at their current low level. That same commentator yesterday explained the huge run up in stock prices yesterday on … the Fed’s announcement that they would hold interest rates at their current low level.
Of course, as you’d expect, I have my own theory about why the economy is in such bad shape. In short, it is our obsession with low costs: low costs drives jobs overseas, it lowers wages, it lessen quality, it diminishes profits.
But you really don’t come here for my economic diatribes, so here is a video fresh off the WSJ website that talks about GroupOn’s latest earnings report. It showed that revenue is still growing, rising to $878 million in Q2, but the company continues to bleed red ink, losing $117 million in the quarter, as well.