Monday, June 1, 2009

All Things Considered, the U. S. May Be Unprofitable at Present

The personal savings rate was reported today to be running at a $620 B rate.

Corporate after-tax profits may be 7% of $14 B, let us say $1 T.

Totaling individual savings and a generous measure of corporate profits yields $1.6 T.

That is roughly equal to the Federal Government's deficit.

This presumes that other localities are at breakeven.

Net-net, this analysis suggests that as a whole, this country is running at breakeven.

What's that worth?

No one knows.

Copyright (C) Long Lake LLC 2009

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