Ready for some ugly numbers? Well, according to the WSJ:
Corporate profits after taxes were revised a bit lower. After-tax earnings fell 3.2% to $1.300 trillion in July through September from the second quarter, the report showed. Profits previously were estimated falling 3.0%. Second-quarter earnings decreased 0.4%. Year over year, profits fell 10.1% since the third quarter of 2007.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwRyyu0x85aRL5w6T8Fjs0sTCzrliZuU53A0_Vy3ZaJd2LG_NbCrH8GNPSLyQ6p0OnpZF8r8gpjtWS_vUC-R8Or9lvwJG3fgoytkxjiIIWgreoEwIHpuhAZPTH_OxTQp_VlXv31FSIyg/s400/corpprof.png)
Digging into the data, one can easily see the struggles corporations (and the public sector reliant on taxing corporate profits) are going through. The following sums it up:
- Undistributed profits down 30+%, corporate profits and profits down ~10%
- Taxes on income down (less profit to tax)
- Cash flow down (less profits + expensive financing to replenish cash)
- Consumption of fixed capital up (use it or lose it, fixed capital doesn't disappear)
Source: BEA
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