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Is Stock Market A Bubble? US Corporate Profits Down Since July 2014

Big Bubbles in the US economy! Not tiny bubbles like Do Ho sang.

Corporate profits with inventory valuation adjustment (IVA) and Capital Consumption Adjustment (CCAdj) grew with the S&P500 index from 2009 to July 2014. But since July 2014. Corporate profits have actually declined … yet the S&P 500 index rose 53% over the same period.

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Corporate profits rose rather dramatically with The Fed’s quantitative easing (QE) from 2009 to July 2014. Then corporate profits began declining as Janet Yellen and The Fed stopped QE and eventually started letting their balance sheet shrink.

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Corporate earnings and the stock markets are living on a prayer. Or The Fed.

Maybe Tulsi Gabbard has a point about auditing The Fed. After all, commercial banks are  audited. Why not audit the bank for banks??

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