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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era
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To: Freedom Fighter who wrote (238)4/23/1998 8:23:00 AM
From: Reginald Middleton  Read Replies (1) of 1722
 
<Earnings were overstated by 42% in 1995, Earnings were overstated by 57% in 1996>

If you follow any of the economic profit schools, or if you are an accountant, you probably have heard that earnings in the US mean very little. With current GAAP rules, it is almost hard not to distort economic earnings.

<Annual growth in income may be 2%-3% higher than the Fed thinks.>

The fed still relies on accounting figures and not economic figures, at least I think they do.
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