"Two Ways to Play"-Kevin Depew of Minyanville
Thursday, April 23, 2009SUSIE GHARIB: From Washington to Wall Street, the talk is about signs of stabilization in the economy. And there are "glimmers of hope," as President Obama says. Tonight's "Two Ways to Play" takes a look. Here's Kevin Depew of Minyanville, and Minyanville's Kevin Depew.
KEVIN DEPEW, MINYANVILLE, OPTIMIST: Hey, Donnie Darko, I know you like to focus on the downside, but check this out: For the first time since the recession began, major companies are now saying the economy is approaching a bottom. This week, United Technologies (UTX), which makes elevators and jet engines, said the overall rate of decline in orders is slowing. Across the broad economy, we're seeing signs of stabilization, in retail sales, consumer spending and even housing. Basically, everywhere except banks. These days, its far too easy to focus on the negative. Remember, before the economy can start going up, it has to stop going down.
KEVIN DEPEW, MINYANVILLE, PESSIMIST: Really? Donnie Darko? That's where you want to go with this? Because in the movie, Donnie Darko went on a crime spree after nearly being crushed by a jet engine, one that could have been made by United Technologies. Here's the reality: None of the economic data or earnings reports indicate a return to economic growth. And the majority of companies reporting stabilization, they are getting there with three things: cost-cutting, layoffs, and benefit freezes -- strategies that will have the perverse effect of contributing to the weakening economy. Out of the woods? Sorry, I don't think so.
