Under the hood of the record stock run
Aug. 21st, 2018 03:06 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
timeletsCorporate profits before taxes are falling, while investment is growing.
https://fred.stlouisfed.org/graph/?g=kWcU
The government is deficit-financing corporate profits and, by extension, the stock market. The hope is that corporate investment will stimulate growth. If it doesn't, the government will have no traditional tools to pull out of a recession.
https://fred.stlouisfed.org/graph/?g=kWcU
The government is deficit-financing corporate profits and, by extension, the stock market. The hope is that corporate investment will stimulate growth. If it doesn't, the government will have no traditional tools to pull out of a recession.
