Europe self liquidating loans
But on a reported earnings basis—the number you report to the SEC under penalty of the law and according to GAAP standards--the 12-month trailing PE is 25.5 times earnings.
The S&P 500 was 666 in March of 2009 and it is trading at 2,560 today.
Revelation Numbers The federal budget deficit widened in the fiscal year 2017 to the sixth highest on record, creating a budget shortfall of 6 billion.
That is up billion, or 14%, from the fiscal year 2016.
This isn't your typical 1970's style inflation that drove up CPI to 15%.
Instead, the inflation has settled into asset prices, and the scenario is such that makes the conditions leading up to the Great Recession seem tame.
It has risen to such an absurd valuation that it is now destined to absolutely crash.
Its official…the stock market has broken above 23,000, and its valuations should now scare even the most mind-numbed carnival barker on Wall Street.Cutting taxes in an environment of massive debt and ballooning deficits, without a commensurate reduction in spending, is not going to grow the economy over 3%--at least it hasn't worked in the past 800 years.Declining government revenues and long-term costs associated with an aging population, including higher Social Security and Medicare spending, are expected to continue pushing up deficits over the coming decades.According to Carmen Reinhart and Ken Rogoff, in their book, "This Time Is Different" - 800 years of financial history proves that high government debt ratios lead to low economic growth.
And though some of their data have been questioned regarding the magnitude of their findings, their basic premise that high debt leads to weaker growth has held true under aggressive scrutiny.On October 20th, the New York Times reported that "House Republicans are considering a plan to sharply reduce the amount of income American workers can save in 401(k) accounts, reportedly to as low as ,400 per year (The current figure is ,000, rising to ,500 next year, with ,000 additional in catch-up contributions permitted to those 50 and over.)" However, President Trump quickly killed this with a tweet too.