Thursday, February 11, 2016

THE LIFE BLOOD OF THE AMERICAN ECONOMY IS BEING BLED DRY ..............

THE LIFE BLOOD OF THE AMERICAN ECONOMY IS BEING BLED DRY 

American corporations have been playing a musical chairs game where the loser gets taken out back and shot. During the last 40 years, the life expectancy of firms in the Fortune 500 has declined from 75 years to less than 15 years. In what Forbes called "the most important business study ever," Deloitte released The Shift Index, which compiles the ROI of 20,000 US firms from 1965-2009. The chart below shows an 80% collapse in the average ROI of American businesses.

With negative interest rates around the corner, how long will it be until the Fed props up the zombie economy and pushes average profit margins below the zero bound?


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