Budget Deficits & Expected Record US Corporate Profits

A look at US corporate profits should scare off any equity bear, unless you do not bother about the huge economic cost (imagine direct transfer from budget deficits to corporate profits), which also Americans will be carrying ...

Click on charts to enlarge, courtesy of Societe Generale.

Amazing, but to many economic health is expressed in form of corporate profits only. Budget deficits are run to maintain corporate capacity that was created on false perception of sustainable aggregate demand driven by growing debt. Now, let's live in that delusion ... by making private debt and credit markets even more dysfunctional with quantitative easing and other aberrations ...