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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Fiscally Conservative who wrote (80355)	9/26/2011 11:06:03 AM
From: KyrosL	Read Replies (2) \| Respond to of 217749

Yes profits as a percent of GDP are near all time highs. They hit their all time peak in 2005, then dropped during the Great Recession primarily because financial companies lost huge amounts of money, and now they are again challenging their 2005 peak. My reasoning is that in a muddle through economy of relatively low growth the share of profits as a percent of GDP is bound to drop back to average levels. Right now it's approaching 10%. Historical average is around 5%.

To: Fiscally Conservative who wrote (80355)	9/26/2011 11:06:27 AM
From: elmatador	Respond to of 217749

It is just a negotiation what's going on in Europe. Banks want to extract as much from their debtors. Debtors want banks (mainly French and German) to believe they can't give anything more. Banks press=>Governments promise more austerity=>Populaces protests=>Banks press for more=>Governments promises more cuts and hardship=>Populaces protests even more than before. They could do this until doomsday. Problem is that as this horse trading goes on, the rest of the world economies are being affected. Thus rest of the world start putting pressure in Europeans: Deal away with this camel bazaar sale thing. It is spilling over to the rest of the world economy. Accept hair cut. It is unavoidable. How European react? They think there is still money on the table they can lay their hands on it: Germany Downplays Hopes of Fast New Crisis Course German officials on Monday downplayed prospects of any quick and dramatic change of course in the eurozone debt crisis, days before a parliamentary vote on beefing up the continent's rescue fund. Weekend meetings of global financial leaders in Washington raised hopes of a change in strategy, with officials indicating that would focus on further boosting the firepower of the euro440 billion ($595 billion) rescue fund — perhaps by allowing it to tap loans from the European Central Bank or otherwise leveraging its lending capacity.http://www.nytimes.com/aponline/2011/09/26/business/AP-EU-Germany-Financial-Crisis.html?_r=1&src=busln