the cost of operating leverage

I just heard some guy say on TV how we don't need a huge rebound, in order for earnings to skyrocket. Why? Because companies have enormous "operating leverage."


What this essentially means is that, right now, companies are losing money because their capacity and overhead is too high, no? What is this crap? Why wasn't this guy talking about operating leverage at Nasdaq 5,000?


Or, if they really are poised to operate at just about any flexibile capacity and make a profit - if they have made an art out of mothballing - then how much must that cost??


Next thing, we'll have to have cars with three engines, that run on gas, batteries, or solar power, or something. If they can do it for cheap, I have no complaint.


But I am just suspicious it might be cheaper for counterparties to actually know one another's supply and demand a little better.


eLROY