S&P 500 EARNINGS HAVE FALLEN AND CAN’T GET UP

Jon Banking, Blogosphere, Corporate, Economy, Fiscal Policies

It’s a long way down folks. S&P 500 earnings are already down 12% from their all-time highs. They reached these heights due to the Federal Reserve ZIRP and QE, along with the pocket protector wearing accountants at the FASB knuckling under to Bernanke and Geithner and allowing the Wall Street banks to report fake profits. Reversing hundreds of billions in loan loss reserves booked in 2009 while ‘earning’ billions from parking money at the Fed has allowed Wall Street banks to report $700 billion of fake profits since 2010.
The massive corporations that make up the S&P 500 have generated increasing profits by refinancing their debt at the artificially lowered rates from the Fed, raising prices, moving jobs to foreign countries, and giving their workers 2% raises. Revenue growth among the S&P 500 has been non-existent. The game is up.

This post was published at The Burning Platform on 9th September 2015.