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Old 10-31-2013, 12:51 PM  
KC native KC native is online now
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For the Fed obsessed idiots (Teej and BEP in particular)

Corporate Profits After Tax

http://www.ritholtz.com/blog/2013/10...its-after-tax/

Billions of dollars, seasonally adjusted, after tax without inventory valuation (IVA) and capital consumption adjustments (CCAdj).

I have been trying to explain to some of my more Fed obsessed friends there are factors outside the central bank that matter also. One such factor is corporate profits.

As the chart from the Federal Reserve Bank of St. Louis shows, after tax Corporate Profits are at all time highs. And while the inclination is to say this is driven exclusively by programs like QE and ZIRP, the pre-crisis profit picture was also very rosy. (Rates were very low than also).

I am hard pressed to believe that corporate profits are due exclusively to ultra-low rates. There is no doubt that financing costs are lower, but that is offset by tightened credit. Demand for goods and services has been increasing only modestly. While private sector growth has been repsectable 3-4% — the public sector continues to be a net negative drag on growth. State and municpality layoffs also have the effect of depressing demand.

The corporate sector is actually well positioned: Balance sheets are the cleanest in a long while. Companies are running very efficiently, with limited head count (we see evidence of this in stubbornly high unemployment rates). Productivity gains are hard to come by because productivity has risen so much over the past 20 years. Business Intelligence software is allowing firms to make changes on the fly — it used to take several quarters before enough intel could be gathered to shift manufacturing or supply chain decisions. It now happens in real time.

~~~

Yes, the Fed is a factor in high corproate profits — but its not the only factor.
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Old 10-31-2013, 02:55 PM   #16
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Originally Posted by Race Card native View Post
JFC you are stupid.

Presidents don't affect the economy if they're named Barack Obama. But they do if they're named George W Bush. Nice argument, retard.
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Old 10-31-2013, 03:13 PM   #17
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Originally Posted by Prison Bitch View Post
Presidents don't affect the economy if they're named Barack Obama. But they do if they're named George W Bush. Nice argument, retard.
Affect and control aren't synonyms dipshit.
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Old 10-31-2013, 03:28 PM   #18
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Profit. Must be stopped.
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Old 10-31-2013, 03:31 PM   #19
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Originally Posted by HonestChieffan View Post
Profit. Must be stopped.
That is clearly what this thread is about.
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Old 10-31-2013, 03:40 PM   #20
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Old 10-31-2013, 04:07 PM   #21
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Meaning people work together and by definiiton of the word "Breath Together" to bring about a common goal. Political Zionism with Greenspan at the time playing the high priest of the almighty dollar. Now Yellin who is totally tied to my home town is the big wig . A woman so even though she is Jewish too lets not pay attention to her Zionist bias. She needs to repent and accept Jesus Christ as her messiah not the long legged mack daddy Obama.
Complete nutjob loser.
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Old 10-31-2013, 04:58 PM   #22
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Quote:
Originally Posted by Nightfyre View Post
That is clearly what this thread is about.
I know. But lets be honest…Nitwit is a dumbs on so many levels…If you can't link profit to low cost leverage and to not spending/investing your profits….come on ****ing freshman econ can get to this. And its all evil cause it doesn't contribute to the lowlifes.
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Old 10-31-2013, 08:08 PM   #23
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Quote:
Originally Posted by HonestChieffan View Post
I know. But lets be honest…Nitwit is a dumbs on so many levels…If you can't link profit to low cost leverage and to not spending/investing your profits….come on ****ing freshman econ can get to this. And its all evil cause it doesn't contribute to the lowlifes.
You completely missed the point of the post dumb****.
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Quote:
Originally Posted by Iowanian View Post
I'm just a little pussy from Iowa
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KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.
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Old 10-31-2013, 08:43 PM   #24
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1.3 trillion is a lot of toxic assets pulled off of corporate balance sheets.
I remember when that was a really big number.
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Old 10-31-2013, 09:15 PM   #25
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Quote:
Originally Posted by Race Card native View Post
Corporate Profits After Tax

http://www.ritholtz.com/blog/2013/10...its-after-tax/

Billions of dollars, seasonally adjusted, after tax without inventory valuation (IVA) and capital consumption adjustments (CCAdj).

I have been trying to explain to some of my more Fed obsessed friends there are factors outside the central bank that matter also. One such factor is corporate profits.

As the chart from the Federal Reserve Bank of St. Louis shows, after tax Corporate Profits are at all time highs. And while the inclination is to say this is driven exclusively by programs like QE and ZIRP, the pre-crisis profit picture was also very rosy. (Rates were very low than also).

I am hard pressed to believe that corporate profits are due exclusively to ultra-low rates. There is no doubt that financing costs are lower, but that is offset by tightened credit. Demand for goods and services has been increasing only modestly. While private sector growth has been repsectable 3-4% — the public sector continues to be a net negative drag on growth. State and municpality layoffs also have the effect of depressing demand.

The corporate sector is actually well positioned: Balance sheets are the cleanest in a long while. Companies are running very efficiently, with limited head count (we see evidence of this in stubbornly high unemployment rates). Productivity gains are hard to come by because productivity has risen so much over the past 20 years. Business Intelligence software is allowing firms to make changes on the fly — it used to take several quarters before enough intel could be gathered to shift manufacturing or supply chain decisions. It now happens in real time.

~~~

Yes, the Fed is a factor in high corproate profits — but its not the only factor.
This is a big "no duh." What a suprise, you offer a multi trillion dollar stimulus plan, and the status quo corporate entities clean up.

You're saying that the Fed has no blame here? They're the ones printing the money.
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Old 10-31-2013, 09:50 PM   #26
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Look at that chart. It was insustainable. The market was ready to wipe them out and liquidate. It didn't happen.

What exactly is the point of this thread? Surely it's to demonstrate what a horrifically bad idea it was not to take our medicine when it was time to be taken.
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Old 10-31-2013, 10:35 PM   #27
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Those billions of dollars are worth much less.

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Old 10-31-2013, 11:19 PM   #28
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Quote:
Originally Posted by Taco John View Post
This is a big "no duh." What a suprise, you offer a multi trillion dollar stimulus plan, and the status quo corporate entities clean up.

You're saying that the Fed has no blame here? They're the ones printing the money.
You need to learn how to read better.
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Quote:
Originally Posted by Iowanian View Post
I'm just a little pussy from Iowa
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KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.
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Old 10-31-2013, 11:20 PM   #29
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Quote:
Originally Posted by Taco John View Post
Look at that chart. It was insustainable. The market was ready to wipe them out and liquidate. It didn't happen.

What exactly is the point of this thread? Surely it's to demonstrate what a horrifically bad idea it was not to take our medicine when it was time to be taken.
your reading comprehension is laughable.
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Quote:
Originally Posted by Iowanian View Post
I'm just a little pussy from Iowa
Posts: 16,689
KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.KC native Forgot to Remove His Claytex and Got Toxic Shock Syndrome.
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Old 11-01-2013, 12:24 AM   #30
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I think I read it just fine. You just aren't really saying much. You show a profit bubble being inflated, deflated quickly, and then re-inflated twice as quick, and then say that we shouldn't look at the man behind the curtain as the reason it's all happening. Then where should we look?

Does technology factor in? Well, duh. But Technology isn't so cheap, and it takes people to run the stuff. There's just not enough of them out there to fill all the jobs available. THAT right there is why corporate profits are soaring. They can't reinvest the stuff fast enough because the work force coming out of college is dumb as shit. We're entering a golden age of computing, and kids coming out of college don't know a SQL query from a NoSQL database. If they did, believe me, they'd be literally swimming in high paying jobs right now. Same goes in manufacturing.

You're right - the Fed isn't the only problem, but it's a pretty huge problem. The Federal Government is the problem. The constant need to pump dollars and screw with incentives is the problem. College curriculums aren't changing with the times because the money is easy out there for them. They can take in handfuls of student loan money and expand their campus infrastructures, without bothering to keep their curriculums competitive. But they're hearing about it from the employers though.

There is a LOT of money on the sidelines right now. But businesses aren't about to be stupid with it. They know that another bailout isn't coming if they screw it up. So they're being careful with their investments. But it can only last so long. We're quickly approaching another tech boom. The only question right now is where the people power will come from to fuel it in a global marketplace. As it is, about the only think most kids (but believe me, not all) coming out of college know to do with computers is video games and porn.
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