Corporate cost-cuts: early gains soon turn to pain?

* Limits seen to cost-cutting, without hurting prospects * Too much cutting to have big impact on aggregate demand * Some warn more cutting needed to match new reality By Nick Carey CHICAGO, July 19 (Reuters) – Much of Corporate America has slashed costs to stay in the black during the recession, but welding the knife too heavily could also remove the ability to grow in a recovery. “If you cut into flesh long enough, eventually you find bone,” said David Rosenberg, chief economist at Gluskin Sheff in Toronto. “Cost cutting is not a bottomless pit.” Firing people, introducing hiring freezes, halting investments, trimming budgets or even skimping on office supplies are time-tested ways to…

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