Corporate Profits Were the Highest on Record Last Quarter

Vatic note:  Now they won't let me put up pictures. However, what I will do is send them with the daily distribution summary.   At least the mail list will have them.  They were good too.    It says "server rejected". Just so you know, this is a "google" blog system.  Keep that in mind if you are deciding on blogging.    LOL  This is getting really bizarre, since when were they ever afraid of freedom of speech after all these years.  Must be someone running our government that is use to repressive speech.  Wonder who that could be?  Those that created the nazi's?  Or maybe the soviets???  Yah, that must be it.  We are next on the block and soon after the entire world or vice versa.  But this below in this article is TRULY WHAT FASCISM LOOKS LIKE, GET USED TO IT, ITS OUR NEW REALITY.   Can you imagine what their next record profits will look like after having Americans bailout Goldman sucks and Rothschild ?  Should be a serious smack in the face.

Corporate Profits Were the Highest on Record Last Quarter

http://www.nytimes.com/2010/11/24/business/economy/24econ.html?_r=1&adxnnl=1&pagewanted=print&adxnnlx=1290576401-ZUsIbTbyS87aPotuawp02A
November 23, 2010, by Catherine Rampell, provided to vatic by CLG, Lori Price, http://www.legitgov.org

pic -
The nation’s workers may be struggling, but American companies just had their best quarter ever.

American businesses earned profits at an annual rate of $1.659 trillion in the third quarter, ( VN: after American tax payers bailout Ireland, and give the funds to Rothschild and Goldman sucks, then I am sure they will have more record profits, they don't have to earn it, just scam it and they will get record bonuses as well) according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or noninflation-adjusted terms.

The government does not adjust the numbers for inflation, in part because these corporate profits can be affected by pricing changes from all over the world and because the government does not have a price index for individual companies. The next-highest annual corporate profits level on record was in the third quarter of 2006, when they were $1.655 trillion.

Corporate profits have been doing extremely well for a while. Since their cyclical low in the fourth quarter of 2008, profits have grown for seven consecutive quarters, at some of the fastest rates in history. As a share of gross domestic product, corporate profits also have been increasing, and they now represent 11.2 percent of total output. That is the highest share since the fourth quarter of 2006, when they accounted for 11.7 percent of output.

This breakneck pace can be partly attributed to strong productivity growth — which means companies have been able to make more with less — as well as the fact that some of the profits of American companies come from abroad. Economic conditions in the United States may still be sluggish, but many emerging markets like India and China are expanding rapidly.

Tuesday’s Commerce Department report also showed that the nation’s output grew at a slightly faster pace than originally estimated last quarter. Its growth rate, of 2.5 percent a year in inflation-adjusted terms, is higher than the initial estimate of 2 percent. The economy grew at a 1.7 percent annual rate in the second quarter.

Still, most economists say the current growth rate is far too slow to recover the considerable ground lost during the recession.

“The economy is not growing fast enough to reduce significantly the unemployment rate or to prevent a slide into deflation,” Paul Dales, a United States economist for Capital Economics, wrote in a note to clients. “This is unlikely to change in 2011 or 2012.”

The increase in output in the third quarter was driven primarily by stronger consumer spending. Wages and salaries also rose in the third quarter, which might help bolster holiday spending in the final months of 2010.

Private inventory investment, nonresidential fixed investment, exports and federal government also contributed to higher output. These sources of growth were partly offset by a rise in imports.

---

The article is reproduced in accordance with Section 107 of title 17 of the Copyright Law of the United States relating to fair-use and is for the purposes of criticism, comment, news reporting, teaching, scholarship, and research.