Chart of the Week: Capacity Utilization

S&P 500 earnings (blue line) have been rising despite the continued decrease in capacity utilization (gold line).

Earnings vs. Capacity Utilization
Source: Chart of the Day

This excess capacity is the hangover from the massive over-investment in tech and telecom during the 90s bubble.

Random Notes
Gains in Wages Expected to Give Economy a Lift

Can U.S. growth last?

Despite Profit Improvements, U.S. Stocks May Underwhelm

The end of the Oil Age

The China bubble

0 for 2 on Treasury chiefs

Quote of the Day:
“The world economy is volatile enough without a loose cannon at the U.S. Treasury.” –Paul Erdman

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