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To: SouthFloridaGuy who wrote (1)	2/12/2007 7:17:09 AM
From: KyrosL	Read Replies (2) \| Respond to of 1718

Regarding (1), US profits as a percent of GDP are at all time highs. The question is whether they are sustainable. In the past profits as a percent of GDP have been cyclical. Will this time be different and why. One of the key reasons profits are so high is globalization. US companies have been able to shed high priced US workers and outsource a lot of their operations (in particular, manufacturing) to cheaper countries. The prices they charge however, have remained stable, so profits are high. How long will it take for these profits to be competed away?