GOP I would like to introduce you to the whig party
Posted by glassman on :
that re-affirms my take on the recent run to 1000 on the S&P, it's a little bubble.
Posted by a surfer on :
raybond your as blind mentally as Ray Charles was physically.
This is NOT political in nature......
This is NOT political in nature......
Maybe if I write it twice you'll get it.
Posted by a surfer on :
Yea Glass the smoke and mirrors has to end somehow
or treasury will make Madeoff look like a saint.
In the scheme of things, one might question whether a country that routinely lies to itself, and then accepts those lies, then reprints those lies, and ignores the obvious discrepancies is really on a sustainable path to recovery, complete with green shoots, or whether it is merely leading itself astray.
Posted by wallymac on :
After reading the article. I have a couple of questions.
1) If solely at Corporate Revenue, wouldn't the financial institutions writing off of bad debt affect the revenue reported by them?
2) Wouldn't the corporate revenue of Oil Companies be lower because of the drop in the price of Oil?
3) If corporation dropped prices in order to make sales wouldn't their revenue drop yet consumers still spend about the same as they have been spending?
I'm not an economist just asking questions that came to mind.
Posted by glassman on :
quote:Originally posted by wallymac: After reading the article. I have a couple of questions.
1) If solely at Corporate Revenue, wouldn't the financial institutions writing off of bad debt affect the revenue reported by them?
2) Wouldn't the corporate revenue of Oil Companies be lower because of the drop in the price of Oil?
3) If corporation dropped prices in order to make sales wouldn't their revenue drop yet consumers still spend about the same as they have been spending?
I'm not an economist just asking questions that came to mind.
1)revenue is gross income, write-offs affect the "net income" because they are deducted from the revenues in profit reporting. there is less revenue collected when mortgage holders are not paying anything. but then that comes out of consumer spending too...
2)the price of oil dropping and the price of gasoline dropping have been fairly consistent with each other.
we are also consuming less oil. the consumers are spending MUCH less on oil products tan last year, yet the indicator shows a slight drop in consumer spending...
cacklacking the CPI? they drop energy and food, but for GDP they do not. (that may be where the big inconsistency is ?)
3)dropping prices drops revenues, but it also drops prices to middleman and consumers.
PCE is always guestimated.
the GDP numbers have always been a guess because of a few guesses that are always made.
in other words the GDP reports are always wrong, and the question is always which way are they wrong and does it matter.
in this case? it is very suspicious that CPE is not more like negative 10%, that would change the GDP downward by a good bit sine PCE is around 60% of the GDP.
he also pointed out that sales tax collections are down by 10% and unemployment is like 9%... those align with a theory that CPE should be down closer to 10% than 3%
Posted by wallymac on :
quote:Originally posted by glassman:
quote:Originally posted by wallymac: After reading the article. I have a couple of questions.
1) If solely at Corporate Revenue, wouldn't the financial institutions writing off of bad debt affect the revenue reported by them?
2) Wouldn't the corporate revenue of Oil Companies be lower because of the drop in the price of Oil?
3) If corporation dropped prices in order to make sales wouldn't their revenue drop yet consumers still spend about the same as they have been spending?
I'm not an economist just asking questions that came to mind.
1)revenue is gross income, write-offs affect the "net income" because they are deducted from the revenues in profit reporting. there is less revenue collected when mortgage holders are not paying anything. but then that comes out of consumer spending too...
2)the price of oil dropping and the price of gasoline dropping have been fairly consistent with each other.
we are also consuming less oil. the consumers are spending MUCH less on oil products tan last year, yet the indicator shows a slight drop in consumer spending...
cacklacking the CPI? they drop energy and food, but for GDP they do not. (that may be where the big inconsistency is ?)
3)dropping prices drops revenues, but it also drops prices to middleman and consumers.
PCE is always guestimated.
the GDP numbers have always been a guess because of a few guesses that are always made.
in other words the GDP reports are always wrong, and the question is always which way are they wrong and does it matter.
in this case? it is very suspicious that CPE is not more like negative 10%, that would change the GDP downward by a good bit sine PCE is around 60% of the GDP.
he also pointed out that sales tax collections are down by 10% and unemployment is like 9%... those align with a theory that CPE should be down closer to 10% than 3%
Thanks. I figured someone would have a reasonable response that hadn't come to me.