According to Paul Kasriel at Northern Trust, the profits from the country's financial sector now make up 31% of our corporate earnings. In 1990 it was 20%. In 1950 it was 8%. So, these massive writedowns by such as Merrill Lynch, Citibank, Wachovia, AIG, etc. will have a much larger impact today than in the last century.
I wonder what the drop in manufacturing's share of corporate earnings has been.
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