SOS SADistics & SCAtisitcs

USA GDP about USD14 trillion

USD Debt (2010)
Government - USD14 trillion (USD1 trillion in 1980)
Household - USD13 trillion
Business - USD23 trillion

CPI is now 620 (1970 is 100)

Unfunded debt (medicare & medicad) - USD130 trillion
Derivatives outstanding in USA - USD240 trillion


Market cap of NYSE is about USD15 trillion
Trailling PE of NYSE is about 18 times
Hence Earnings of NYSE is about USD0.8 trillion a year
Dividend Yield now is about 1.71% (long term average is about 3%)

MyView

Red Flags

• debt growth is alarming, now is 3.6 times the GDP


• unemployment is currently about 9.6%


• consumption before 2008 crash is about 76% of GDP


• housing inventories about 2 million UNSOLD


• saving rates is increasing since 2008 (consumption will drop)


• PE of 18 is relatively high against long term average of 13


• QEs and zero interest rate will have adverse financial effect on economy


• Derivatives issues not address since 2008

The sadistics and scatisics do not look good. It is a matter of timing when it implode. Remind me of a corporation of over gearing and under capitalised with incompetent staff.