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To: Earlie who wrote (209287)	12/12/2002 1:48:15 PM
From: Mike M2	Read Replies (1) \| Respond to of 436258

E, Les had a good link about how the imputed value of home prices is now added to the savings rate. If the gov't doesn't like the output just change the formula. They still don't include capital gains from stock sales but there are many cap gains now anyhow. here's the link bea.gov mike

To: Earlie who wrote (209287)	12/16/2002 6:29:36 AM
From: Mark Adams	Respond to of 436258

Earlie, Thanks for the comments. I seemed to enjoy a nice streak without lucid thoughts, relaxing in the weeds quietly observing. I did happen on this, when I went to see if I could find out more about the tax benefits associated with aircraft leases. Tuning In to Cash Flow We examined the operating cash flow of the S&P 100. Our findings? Surprisingly, there's reason to be optimistic about America's blue chips. (Story includes downloadable spreadsheets) cfo.com\|\|M\|446,00.html I also happened on a by Yardeni that documents the impacts of last years tax legislation changes on- oops, no longer lucid.... <g> prudential-yardeni.com For now, “profits from current production,” which is based on economic depreciation rather than tax-reported depreciation, remains surprisingly robust (Figure 8). As I demonstrated last week, in the GDP accounts, profits as reported for tax purposes has been depressed since the fourth quarter of last year by the March 2002 tax law change that permitted companies to immediately depreciate 30% of any capital equipment purchased since 9/11. {deleted stats} Corporate cash flow is equal to economic depreciation plus after-tax retained earnings plus the CCAdj and the inventory valuation adjustment (IVA), which removes inflation-based inventory profits. Cash flow jumped to a record high of $1016 billion, at a seasonally adjusted annual rate, during the fourth quarter of last year, and remained near this rate through the second quarter of this year (Figure 8). Last week, I argued that S&P 500 operating earnings may be understated this year because depreciation expenses have been boosted by the March tax law change. Forward consensus expected S&P 500 operating earnings for the next 52 weeks recovered modestly during the first half of the year, but have stalled around $55 per share since July (Figure 9). A cyclical rebound in pricing next year, even if it is relatively muted, could provide a big boost to earnings. Forward earnings is highly correlated with both the intermediate core goods PPI and the CRB raw industrials spot price index (Figures 10 and 11).