Following up on "President Obama Has Been Very Good For Corporate America" where we said:
Don't listen to the Chamber of Commerce/White House chatter, it's either a distraction or deliberate misdirection.Here's another part of the puzzle via The Big Picture
Big business and big government are as symbiotic as you can get.
The fact is that corporations are pocketing a larger share of GDP than they have in many years. Here is the BEA's Table 1.12. National Income by Type of Income, take a gander at lines 2 and 13.
And here's one part of the puzzle. Please note that profit margins are higher than during the boom years of the late nineties...
With 96% of S&P 500 companies having reported for Q3 2010, the COTD provides some long-term perspective as to current earnings.
By focusing on 12-month, S&P 500 earnings 9as reported), the chart illustrates how earnings plummeted 92% from its Q3 2007 peak to Q1 2009 low. This brought inflation-adjusted earnings to near Great Depression lows.
Ahhh, how times have changed: Since its Q1 2009 low, S&P 500 earnings have surged 900%. They are now at peak dot-com bubble levels. The only time earnings have been higher than current levels for a 29-month stretch that occurred at the tail end of the credit bubble.