American Businesses Still Kicking B*tt

You would think, with all the doom and gloom in the media and among the populace, that the entire American economic system is collapsing.

While I’m not glossing over the importance of housing or the financial markets to the country, most Americans don’t work for or have anything to do with either sector.

Yes, nearly 70% of Americans own their own home and are affected by the housing bust.

But most of those people go to their jobs everyday at businesses that are, quite frankly, kicking some b*tt right now.

Yes- I’ll say it. American business is alive and well and doing what it has always done: make money.

In just the last few days we’ve heard from some of these companies:

Celanese (CE), the specialty chemical company, reported a record second quarter just three months after posting a record first quarter and talked about business in India as being “robust” and nearly giddy over the Asian growth story.

Caterpillar (CAT) had a record second quarter as more emerging market countries dig, build, and explore for natural resources and infrastructure.

Wabtec (WAB), which makes train parts, including braking systesm, around the world, saw sales rise 20% and increased 2008 guidance.

Bunge (BG) saw profits quadruple as demand remained strong for its oilseeds and grain processing as well as its fertilizers. It also raised guidance for 2008 and is investing heavily into its businesses.

Woodward Governor (WGOV), which manufactures energy control for engines, aircraft and industrial turbines- which are big right now with the push to alternative energy and wind power, saw sales rise 23% and earnings grow 38% year-over-year. The company raised full-year 2008 guidance.

These are just a few of those that reported in the last few days and that, while being cautious given the state of the economy, are still growing their businesses and thriving.

Add on to that companies that are taking advantage of the China explosion, such as McDonald’s (MCD) and Yum Brands (YUM), and everything isn’t looking so gloomy after all.

The economy isn’t collapsing

American businesses are competitive. The weak dollar is helping with exports. We still have products that people in the world want.

Finally, we will get beyond the obsession with housing and, frankly, hedge funds and private equity. After the dot-com bust, MBA students started taking jobs in record numbers with hedge funds and private equity groups. Who could blame them as that’s where the huge money was.

Heck, only a few years ago, business schools were offering classes on real estate and how you could become a real estate developer.

The problem with that is that real estate doesn’t produce anything. Yes, jobs are created and money is moved around. But in order for America to be competitive, it needs to produce something. Selling each other property isn’t going to cut it against the Chinese.

This housing bust is taking the glamour out of real estate. Finally. Our most productive people need to, once again, focus on what America does best.

Produce.

The companies listed above are doing just that. These companies are kicking b*tt.

All is not horrible in the American economy right now. Let’s focus on what is working and grow it.