After Capital Consumption Adjustment, GDP profits look a lot worse than the headline number–lower, in fact, than the fourth quarter of 2011. The simplest explanation for the gap between the adjusted GDP report and the higher level of S&P profits is that U.S. corporations are under reporting depreciation.
(Copyright 2015 Asia Times Holdings Limited, a duly registered Hong Kong company. All rights reserved. Please contact us about sales, syndication and republishing.)