Enquirica Research - Forty Percent of US Corporate Profits From Finance Sector!

It is estimated that up to 40% of US corporate profits were generated by the finance sector prior to the 2008 crisis – largely from speculative activities.
By: Enquirica
 
Oct. 12, 2011 - PRLog -- Given the reflation of the prices of speculative assets and the collapse of risk premiums, the ongoing money printing efforts in the developed world are having limited effect outside of the “finance economy”.  It is estimated that up to 40% of US corporate profits were generated by the finance sector prior to the 2008 crisis – largely from speculative activities.  Corporate profits attributable to the finance sector were effectively stable until the 1970s when the growth in the US money supply turned sharply higher on a sustained basis.  Given the finance sector’s intimate relationship with the US Federal Government and the Federal Reserve banking system it is not surprising that the newly printed money has flowed into and through the finance sector acting as a wholesale subsidy that drove corporate profits, compensation and speculation.

Enquirica Research is a Calgary based research firm focusing on independent analysis of alternative asset classes and investment opportunities in exempt securities that target investments in western Canada. For copies of Enquirica research register at www.enquirica.com.                           

DISCLAIMER:  The opinions, estimates, projections and other information which is contained herein and derived from or attributable to persons other than ENQUIRICA is neither endorsed nor adopted by ENQUIRICA – it is presented for informational purposes only.  Further, the opinions, estimates, projections and other information contained herein are not intended and are not to be construed as an offer to sell, or a solicitation to buy any securities, nor shall such opinions, estimates, projections and other information be considered as investment advice or as a recommendation to enter into any transaction.

FORWARD-LOOKING INFORMATION: This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words "anticipate", "expect", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward looking information. Those forward-looking statements herein made by ENQUIRICA, if any, reflect ENQUIRICA’s beliefs and assumptions based on information available at the time the statements were made.  Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material.   Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release (if any), which is given as of the date it is expressed herein. ENQUIRICA undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.

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Enquirica Research is a Calgary based research firm focusing on independent analysis of alternative asset classes and investment opportunities in exempt securities that target investments in western Canada. For copies of Enquirica research register at www.enquirica.com.
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Source:Enquirica
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