They have, of course, tremendous experience in duping people, their customers and themselves. Yet we see very little of it. As we have many times stressed, understanding the specific pattern of the downturn is crucial for judging both its course and its implications. Regardless of manifest, contrary evidence, the consensus sticks to the deceptive version of an inventory correction. The inventory sales-ratio for businesses as a whole was in March at 1.37, after 1.32 a year ago. .
Profits are the most important issue requiring utmost attention.
The aim of production in the capitalist economy is the pursuit of profit by businessmen. Within just two quarters, profit margins fell in Q1 to their lowest level since early 1994. Here too, it is amazing how little attention the profit drama finds. The profit carnage has come as a shock to corporate managers. The story was complete bogus.