Over 90% of US corporate cash flow is depreciation

[Guest sigmoidoscope]

"The Fed's flow of funds database is just packed with nuggets of information. Unfortunately, these days those nuggets are radioactive when it comes to the economy. For example, one of the nuggets I just discovered is that for the past three years running economic depreciation for nonfinancial corporations has accounted for over 90% of their domestic cash flow. (Cash flow is defined here as essentially book profits minus accrued tax liabilities, dividend payments, and depreciation.) As can be seen in Chart 1, this is the highest depreciation has been as a percent of cash flow in the post-WWII period. In 2001, depreciation accounted for slightly over 100% of cash flow!"

 

Paul Kasriel, Northern Trust Company

 

 

 

Paul Kasriel, Northern Trust Company

[Guest sigmoidoscope]

Tales from the Potemkin Village

 

 

May 6, 2003 -- THE only bright spot in the economy these days is personal income, which the government recently said rose 0.4 percent in March and 0.2 percent the month before.

 

But Washington has to go through some mighty strange contortions to produce that type of gain at a time when each month thousands of people are losing their jobs and the rest are too frightened to ask for raises.....

 

 

Washington and the Illusion of Income - Crudele

[Takachi]

OMG, imputed income my ass. I suppose they are treating all those interested free car loans as imputed income.

 

Wake up America!

 

Saw a piece a month or so ago where 100% of the profit of one of the credit card companies was from late charges. How many of those digi dollars actually get collected?