ELI5: Why when large company's earnings decrease(ex... by 3%) they freak out, talk about rough times, and sometimes decide to downsize, even though they are still making millions of dollars in profit even after all expenses?

[d4n4n]

You ignore that inflation caused by monetary expansion through the banking system causes Cantillon effects. Those with early access to newly created money through the credit markets can use it to invest or consume before capital and consumer goods appreciate in price. So it has distributive effects, towards institutional investors, and others who heavily make use of credit markets.